All Forum Posts by: Richard Helppie-Schmieder

@Brian Lookabaugh what city is it in?

@Wale Lawal I see you are from Houston. If your client is an experienced investor, I think one of our banks we have used in the past actually operates in Houston as well as DFW where I am from and can share his contact if you send me a PM. They just need to see that this is not the first investment property your client is purchasing.

@Adam Sankowski I have done deals like this before successfully using local banks (I am from Dallas). Typically, we are 15%-20% down with a 20yr-25yr amortization and 5 year balloon at Wall Street prime +1%. Banks also want to see a debt service coverage ratio of 1.2 or better. Our best deal had so much equity in the purchase that we got a 10% down loan and we have had other solid deals with 30 year amortizations even with a commercial loan.

A big part of this has really been showing previous experience, establishing a relationship and not asking for these terms on every deal, but being very selective. On my first commercial loan about 5 years ago I called 45 banks, 5 got back to me, 2 could do the loan. It is hard work, but you can start with a list and ask "do you do portfolio lending on residential real estate? I am interested in purchasing an investment property." Hope this helps! Happy hunting!

Hi @Samuel M., why so set on Dallas? To answer your questions, property taxes have been on the rise and have made it fairly difficult to cash-flow on normal banking terms for places around the metroplex. The more outward you go, the better the terms (Greenville, Gainesville, Sherman, Denison, Waxahachie)

Hi @Eder Tavares! I think it may be tough to find someone that has experience in both markets, but are you looking to purchase a property for STR or do Airbnb arbitrage?

@Patrick Rabalais those numbers are cray. Fannie and Freddie product require 20% down I believe (but it has been some years since I used one of their products). Any solid mortgage broker can shoot you straight on this. I recommend AV Vaghela with Highlands Mortgage.

@Kerry Noble Jr Dropping truth bombs over here.

@Steven Arterbery The more places you can look where other people aren't, the better. It naturally makes it less competitive. FSBO is a great start, but a lot of people have access to that list. Something that has worked well for me in the past is sharing with others, in every conversation, that I am looking for my next property to buy.

@Matthew Berry as long as you don't work with New Western or Net Worth, I am a Denton buyer and would love to see properties you are trying to unload. Have done 7 deals in Denton, with 3 of them currently being holds. Thanks!

@Steven Arterbery what has been your biggest bottleneck to keep you from knocking on 40 doors a day?

@Ryan Cooley technically they were all banks, but very localized ones.