All Forum Posts by: Robert Finn

@Parker Shoaf The SA market has also shifted to a bit more normalcy, so negotiating within the deal can also help you save. You can start by underwriting the deal based on what you're comfortable spending on rehab and the ARV based on comps. As you have properties meet your criteria, you can start making offers and if any are accepted, use your option period to perform inspections and get a more precise bid. Some of these homes may not add up, and you'll be out a few hundred dollars for inspections, but it's money well spent for the education and to find the right property.

@Natasha Pollock Welcome to San Antonio! You're on the right track with owner financing in this situation, but may need to broaden search parameters. In my opinion, a good strategy would be to reach out to listing agents and inquiring if the owner owns the property outright. You can then propose Seller Financing. They will need to know what terms you are proposing, interest rate, substantial down payment, and preferably a shorter length of loan. Best of luck and happy to help anytime :)

A lot of great advice here!

Starting out you will spend a lot of time talking to private money/hard money lenders and comparing terms. Shop around and leverage quotes, lenders want your business but will only lend if ARV makes sense. You can provide a CMA, rents, as well as a contracting bid to justify the ARV. On my first deal in San Antonio, I called 15 different lenders all local to Texas. It took quite some time, but I was able to eventually find a hard money lender for my first successful BRRRR.

@Brian G. I own and operate 3 STR's in San Antonio and 1 in Marco Island Florida.

In my experience the private money lender will want to send their "inspector" out, during the remodel, before they let you complete the draw request. Not to sure on the conversation here in the screen shot, but usually it's their money so their terms. It may also be helpful to have your GC converse with the lender on how the work will be done and expectations, that way everyone is on the same page. The GC crew may want to get paid a certain way, but if it's not possible by your lender they need to know that from the start.

Gold Advice from Bill! 

When we chose San Antonio we looked at cost of acquisition, location, and inward migration. Most of my rentals are STR's but can easily convert to LTR's and cash flow based on recent singed leases in the area. Knowing your area's school district and proximity to downtown, attractions, theme parks, military bases, airport, are all important depending on your end goal. Negotiating interest points paid down by the seller or closing costs on your aquisition are not out of the realm of possibility in today's market. I'd also interview realtors and lenders to get a sense of if they have really worked with investors before and how many. Having a one stop shop makes things much easier investing long distance.

A lot of great advice here! If it were a small multi family option to house hack, I'd consider FHA at 3.5% down to grow your portfolio in the long term. I'd also speak to a lender, but 5% down conventional may also be an option. Seller's in my area have been more open to negotiation as inventory has increased, so depending on the deal you can always try to negotiate a point buy down and or closing costs credits.

San Antonio!
Pool properties gross the highest here (65K+ Revenue Range), and you can definitely acquire a turn key rental in that range. We have multiple theme parks, Lackland air force base for weekly graduations, strong midterm demand for health care professionals, and a great historic area downtown (Alamo, riverwalk, the Pearl etc.). Prices have always been reasonable, permitting process isn't difficult, and HOA's are not as present as most major cities.

I've worked with many different lenders and @Andrew Postell with Guaranteed Rate is one of the best! I was in a situation where my first lender couldn't fund, only had 3 weeks to get a new lender and keep the deal alive. I found Andrew through this forum and his team got me to the finish line and closed on time. 

Congrats on making the decision to start your investing journey! It's great you already know the area in where you want to invest, that can be the biggest challenge at times. Monitor days on market, value add opportunities, rental regulations in the area, and creative negotiations such as seller paying for a points buy down or other closing costs. Even as interest rates rise, there are still plenty of strategies to get the best deal and terms. Good Luck out there!