All Forum Posts by: Ryan Husser

@Stanley Tong For private money there isn't really a 'one size fits all'. If you need it quick, I would start with sourcing funds with friends and family. Depending on how much you need this might not be an option. I would look for local hard money lenders in your area as they would be able to get you the capital quick. Usually hard money has higher upfront fees and rates, but is a great bridge type loan in a situation like this. You just need to make sure the apprised value is high enough after all the repairs are made or you will be underwater after the refinance. 

A lot to consider, but if you run your numbers correctly you should make a bunch of money on this. Hopefully this helps! 

Hi Sabrina! 

That is an interesting article and makes me wonder what the market will look like by the end of the year. Demand is insane all across the country, so I am curious if a wave of foreclosures actually helps stabilize supply. Out here in AZ we currently have about 2 weeks of inventory on the market, compared to 2 months of inventory at this time last year. 

Is your market seeing the same demand as we are out west? Most listings are receiving 7-8 offers within a weekend in my market. 

Hi Cory!

That is a tough situation. Everything in real estate is negotiable, however if the seller is holding firm with an 'as is' sale there isn't much you can do. If you aren't willing to buy the property without any other concessions or repairs, walking away might be your best option. The last thing you want to do is buy a money pit and sink capital into something way over your head. 

This market is crazy, however if you did walk away, sometimes sellers will get desperate if they have no other offers. Use this to your advantage as you could come back at a later time and buy the property at a lower price point. Having already completed the home inspection you know what is needed on the home compared to a brand new buyer. Hopefully this helps! 
 

@Stanley Tong Yup, creative financing will likely be the way to go on it. But if you do complete the renovations you should have a nice chunk of forced appreciation on the property. So it will be worth it! 

Hi Roberto, 

Congrats on buying your first property! That is a huge deal. As for the second, a partner would likely be the route to go. For this you will need to carefully vet who your partner is. Banks will combine the debt-to-income ratio for both borrowers and choose the lower of the two credit scores. So make sure the partner you choose has a great debt-to-income to help overcome your lower income and a credit score of at least 620 so you guys can qualify. 

As for the downpayment and reserves that can also combine both assets too if you don't have enough on your own. Hopefully this helps! 

Hi Stanley! 

Most lenders would look at the appraisal to verify that the house is 'livable'. When you say that it needs a lot of work, is there holes in the roof and unfinished rooms, or is it mostly cosmetic? Lenders will lend if the kitchen, bathroom, etc are outdated and old. But if the place looks like a construction zone, you will not be able to get conventional lending. 

You could still finance the property with a hard money loan or private lender, and then refinance the entire property when the rehab is complete. Hopefully this helps!  

Hi Ben, 

This is similar in my area as well. What we have done is just added the water/sewer charge to the rent and made it flat fee. So it will fluctuate a little month-to-month but overall it is an easier process just to keep that in your name and pass it along to the tenant. 

The tenant should be able to move the other utilities such as gas and electric into their name however and seeing that you're in FL I would make sure they do that when they sign the lease. Hopefully this helps! 

Hi Sebastian, 

Welcome to the real estate game! All the markets you listed are great markets to invest in, but you need to find the best one for you. I would first determine if you have a built-in advantage in either of those cities. For example, do you have family or friends that could help manage the properties already located there? If you know people there already, I would strongly recommend reaching out to them to see if they'd be interested in partnering up or helping you manage and find new properties. 

Next, I would research different areas in each to see if you want to go for higher cashflow or higher appreciation. Some cities have both, so you might have decide what strategy you want to go after first. After that, you'll want to interview great agents in the area who have experience working with investors. They can be your biggest asset when trying to find an investment property. If you have time I would also recommend that you visit the city in person and drive the neighborhoods to get a feel for different parts of the city. With Facetime and Zoom you shouldn't need to visit in person when put an offer in, but it is a good idea to see everything in person at the beginning to get a rough idea. 

Hopefully this helps! 

Hi Manju, 

Welcome to Cincinnati. My partner and I own a rental property in the Delhi area and it has been a great experience so far. My biggest recommendation would be to drive the neighborhoods and get a feel for each part of the city. Looking at a map, it is very difficult to determine what is a decent area from one you'd want to avoid. For multifamily you could consider Evanston, certain parts of Norwood, St. Bernard & Madisonville. I would start there and then start interview real estate agents who have experience working with investors. 

Good luck! And feel free to reach out if you have any other questions! 

Hi Carlyle, 

When it comes to appraisers, there isn't much you can do as far as challenging the comps. or changing the value they come up with. The number they calculate usually is what sticks and it is very rare they overturn this. As far as the incorrect square footage on the comps. the appraiser should have made those adjustments in the report to reflect the difference between your subject property and the rest of the neighborhood. So it shouldn't make too much of a difference when all is said and done. 

Also most appraisers will be much more conservative on a refinance transaction, compared to a new purchase.  Hopefully this helps!