All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: What should I do with a HELOC?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Going to be hard to scale that quickly with the HELOC described and lowish liquidity. Have you thought about bringing in a partner or trying the BRRRR method (AirBNBRRR)?
Post: Apartment opportunity but cant get a loan due to vacant units.
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @James Dee:
I'm trying to close a deal, but I can't get enough financing because half the apartments are vacant. This property is a great deal; should I try to find a partner to buy it all cash? Or should I find a hard money lender and finance a loan later after I get the apartment up and running in a month or two? Or is there any other way I can get a loan approved? I'm putting down about 40%.
If you are pretty experienced and think you can get everything stabilized that quickly, why not get a HML? Ideally go with a shop that can do both the HML and the refi
Post: Lima Capital One Financial Lending
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Juan Arias:
I had a terrible time with Lima and want to make investors aware of this. They waited 2 days before closing date to tell me they could not fund. The property was great for a BRRRR method as we got the appraisal back and everything. Made zero sense as I myself am an underwriter so I would know. Just be careful when using those guys. They don't answer emails or phone calls until 4:30pm and by then its too late
Post: Buy and Hold Long Term Rental (BRRRR)
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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congratulations, were you 100% planning to BRRRR when you first bought it back in 2014 or was this a flip that you pivoted on?
Post: How do you know if a property is better as a rental or a flip?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Ethan Lahav:
Hey everyone
I'm curios to know, when analyzing a property, how do you determine if it's better as a flip or as a rental.
Thank you
One main thing is that you may (and probably) won't know the answer at the beginning, but will only find out once the rehab is done. Seeing a lot of success when people have an unemotional optionality for the project and simply run the numbers when the project is complete - put it on the market for sale and for rent and then plug it into a pretty basic spreadsheet!
Post: Investment rates 20% conventional, please share.
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Andrew Garcia:
Hi @Luis De Jesus, the issue with that is that rates are determined by a variety of factors, not just the down payment.
In fact, pricing is determined by 11 factors. 9 of them are determined by you and your scenario (credit score, property type, LTV, occupancy type, etc.)
The other two factors are lender/broker profit margin and market conditions.
Since I only have a few of the factors, I cannot tell you what an accurate rate for you would be.
However, making some assumptions, you would be looking at a rate of 6-6.25% with no fees or points.
Take that with a heavy grain of salt as your scenario will likely be different.
Hope this helps! Let me know if I can be of any assistance.
Another issue on top of this is that rates have been super volatile all year and changing very rapidly, so any sort of post or thread would tend to be rapidly out of date so soon after being posted!
Post: Private Money Loan requirements
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Lots of differences here - I'd recommend connecting with @River Sava for this, she is also a current student who has been working with and learning about this topic this past summer
Post: Negotiating furnishings and decor in an offer for a STR
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Leslie Anne Morris:
That should be easily negotiated by your real estate agent. Here in Tennessee it is very common to ask for the furnishings and some agents will include a bill of sale for $1. It keeps it outside the real estate transaction and makes it a separate document (for lending purposes). They may say no if they are partial to the items, however the answer is for sure no if you don’t ask.
This is important to remember - can't really be financed by a mortgage loan in terms of the valuation, so make sure that is taken into account in your down payment / budget calculations
Post: Does buying unique properties make returns?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Great post and can tell you've thought deeply about real estate investing. However, I would advise going an opposite direction and trying to detach emotionally from what "you like" and your rental property portfolio, especially when beginning. It rings true in lots of asset classes (not just real estate), that "boring is better" which is true because the more interesting/"sexy" an investment is, the more competition there is and thus lower returns. Vs. a boring duplex in a medium sized city isn't going to get many people excited---so unemotional investors focus on that and make the best returns.
I'd advise starting with "boring" basic investment properties that don't get you too excited, and then once you've got good experience and a healthy cash-flowing portfolio, only then venture to "unique" properties that speak to you
Post: Math for short term rentals
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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A good general rule of thumb if you are trying to do back-of-the-envelope calculations is about 2X the long-term market rent