All Forum Posts by: Sean Richway

We can finance NEWBIES as well!

@RonNell L WeaverAnytime!

The fix and flip guidelines are nationwide minus NV, MN, SD, ND, and VT. Just need the submission form attached.

• Up to 85/100/65

• No bank statements

• No sourcing of funds

• No tax returns or income verification

• No reserves required

• Gap allowed

• Wholesale up to 10-20% of contract price

• Stated Personal Financial Statement

• No liquidity minimums

• No max exposure

• Min FICO of 600

• Rates between 10-12%

• Prepaid interest of 6-9 months will apply

• Points between 2-4

• Min 3 flips in the last 36 months (We have a NEWBIE PROGRAM as well!)

• Min profitability applies (deal must show a profit)

• No refinance exit strategies

• 12 month term, free 3 month extension

• No Bankruptcies, Foreclosures, Tax Liens, or Criminal history

• No Pre Payment Penalty

We also have a no FICO fix and flip program only in the following states, AZ, CA, CO, FL, GA, HI, ID, NC, NV, OR, SC, TN, TX, UT, VA & WA. Up to 80% of purchase and 100% of rehab. 75% LTV CAP. Rates start at 9.99% and 3.5 points.

@Brian Geiger  Appreciate everything here.  Sent you a PM as well.

@Taylor L.  Appreciate this very much as that is great insight!  

• -How long typically do you go from the LOI issuance to a formal purchase offer and what additional DD are you doing during that period?
• -Are there any sites you are using to run your comp analysis on rents?
  
• -Are there any sites you are using to look at similar buildings to model your CAP rate expectations off of on the purchase side to make sure the current value is being calculated properly?
• -Are there any sites your prefer using when looking at market data in that area? Job growth, population growth, rental demand, etc.

@Brian Geiger  I appreciate your responses here very much!  Gonna pick your brain a bit more if you don't mind :)

• -How long typically do you go from the LOI issuance to a formal purchase offer and what additional DD are you doing during that period?
• -Not sure if you have any template LOI's, financial models, etc. that you would be okay sharing with me that you use to evaluate financials, investor models, etc
• -Are there any sites you are using to run your comp analysis on rents?
• -Are there any sites you are using to look at similar buildings to model your CAP rate expectations off of on the purchase side to make sure the current value is being calculated properly?
• -Are there any sites your prefer using when looking at market data in that area? Job growth, population growth, rental demand, etc.

@Taylor L. 

@Brock Mogensen

Just putting this back on top of the que :)

@Brock Mogensen  Appreciate the detailed feedback here as well.  This all helps tremendously.  Couple of follow up questions here too so apologize for the brain picking as well:

#2 Yes I would definitely be interested in that list if you don't mind emailing it to me.

#6  Yes please do share that as well if you are comfortable.  Going to ask you the same question as Taylor to get your input but regarding #6 I was more referring to when in the process do you present the LOI to the seller and what DD do you typically try to do prior to presenting the LOI. How long typically do you go from the LOI issuance to a formal purchase offer and what additional DD are you doing during that period?

Not sure if you have any template LOI's, financial models, etc. that you would be okay sharing with me that you use to evaluate financials, investor models, etc. Let me know as that would be a great tool to have.

@Taylor L.  Appreciate the responses and feedback very much here.  Couple of follow up questions so I apologize for over picking your brain:

On #2 above do you ever do a financial lease audit with the property management company or request the sponsor's aged receivables to ensure bad debt isn't being left off the P&L?  Do you ever try to get the owner's Schedule E or tax document to verify expenses as they wouldn't leave out expenses on their tax return?

Regarding #6 I was more referring to when in the process do you present the LOI to the seller and what DD do you typically try to do prior to presenting the LOI. How long typically do you go from the LOI issuance to a formal purchase offer and what additional DD are you doing during that period?

Not sure if you have any template LOI's, financial models, etc. that you would be okay sharing with me that you use to evaluate financials, investor models, etc. Let me know as that would be a great tool to have.

Looking at getting started in multi family acquisitions and I wanted to pick the brain of the members on the site for some questions/topics that are not discussed as much.  These are a bit more detailed on the GP side but wanted to get some perspective from others regarding these items:

1.  When syndicating apartment buildings I am assuming the GP is raising the acquisition fee and Cap X requirements as part of the LP equity amount?

2. Besides the rent roll and T12 what would you suggest reviewing or requesting?

3. Is the asset management fee charged by the GP factored into the CAP rate? I am assuming it is not since it can change from sponsor to sponsor but wanted to make sure.

4.  Any tips when interviewing a potential property manager?

5.  Any specific metrics or stats  you look at when evaluating a suitable market?

6. Any specific processes or procedures followed when it comes looking at a deal, issuing a LOI, underwriting the deal, signing the purchase contract, raising the capital, securing debt, etc. More looking for timing and at what point each step would be done.

Those are the main points I had right now I was curious about.  Appreciate everyone's help and feedback!