All Forum Posts by: Rivers Fike
Rivers Fike has started 0 posts and replied 50 times.
Post: Does a 40% Down Payment Ever Make Sense?
- Lender
- Posts 52
- Votes 18
I think a 40% downpayment can make sense. It depends on your portfolio goals. High leverage will sacrifice cashflow and free and clear properties are sow to scale.
My priority would be making sure the deal works and would want to understand cash flows as a ltr.
You can underwrite the house as if it were a long term rental. Estimate rent for a long term renter not by the bedroom. And make sure it appropriately cash flows with all expenses. After a few years of house hacking, you’ll be setup for a long term rental.
Sent you a DM. Look forward to connecting.
Post: Advice for first-time house hack in Denver
- Lender
- Posts 52
- Votes 18
I think your plan.
I’d suggest going for a slightly smaller bedroom configuration. A 3 bed / 2 bath would be easier to manage with 2 roommates covering most of to costs.
For the leverage, I would plan for what you can cover on your own or maybe 1 roommate for mortgage payments and leverage up to that point. I would personally take the additional leverage.
I’ve worked with different investors in similar positions as you.
Private lending and self directed ira’s could be good options for you.
Feel free to PM me to share more details of your scenario.
Post: Contracts needed! In need of help for the final push
- Lender
- Posts 52
- Votes 18
Quote from @Chris Seveney:
Quote from @Jonathan Wiley:
I apologize if this topic has already been covered but I am in need of someone to help me cross the finish line. The concepts of seller financing are covered very well and I have also received several different versions of contracts for seller carry, lease option, and other strategies, along with two books read and about a hundred Youtube University hours put in on the study of the subject. However, I have two deals right now that need documents written up so I can get official signatures on paper and at title. One of which, I have a hand written contract and already paid the down payment to the previous owner, and the second I am trying to close one week from today. I understand I may be "putting the horse before the cart" here but I would love to catch up and "get my ducks in a row."
Who do I go to? Which attorneys, title agents, etc could be suggested that are doing these types of transactions and using these types of documents. What price should I expect to pay to prepare, notarize, and file these creative financing docs.
I am still a bit of a rookie on the subject but I'm 41 years old and have completed over 80 Real Estate transactions, 7 flips, and am building a small rental portfolio over the last 3 years. Desperately trying to catch up.
Any specific help is very much appreciated.
Thank you,
Jonathan
Always go to an attorney.
Agreed
Post: Where's all the OPM?
- Lender
- Posts 52
- Votes 18
Private money loans are typically priced for shorter term deployment of capital for investment properties. For example, funds to buy and rehab a house prior to selling or refinancing it to a conventional or commercial loan.
For owner occupied single family, it would be much less costly to pursue a conventional mortgage.
That being said there are some special cases where it makes sense to deploy private money for owner occupied properties.
Feel free to PM to discuss your specific scenario.
Post: Advice/feasibility of financing first STR investment
- Lender
- Posts 52
- Votes 18
I think a local bank may be able to provide you a commercial loan. Most banks will won’t to see the actual rent history and that you have experience as a landlord which could be challenging for your situation.
Private lending may also be an option as these lenders often have more flexibility.
Feel free to reach out via PM to discuss more.
Post: HELOCS on Rentals...
- Lender
- Posts 52
- Votes 18
Some lenders can do a portfolio loan or line of credit as a second position.
Feel free to PM.
Post: RIGHT DEAL, WRONG TIME! Looking to make a miracle happen
- Lender
- Posts 52
- Votes 18
For this property, I think most lenders are primarily going to be focused on your ability to service the debt and will likely require a downpayment.
I would start by speaking with a conventional lender and see if you can qualify for traditional financing. After that, I would try a local bank for a commercial loan. They may have more leeway that a conventional loan.