All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1796 times.
Post: Sufficient experience for lending?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Allen B.:
Thanks, @Scott Wolf, that's encouraging to hear, as is the note about making a good application. I've got to get started on that so I'm not caught out when things start moving with lenders.
Do you feel like the terms you got were any worse as a result of being "new"? Did you have to settle for lower LTV than you wanted?
No, I got pretty much the going rate at the time. Definitely better to work with a "smaller" "local" bank like M&T than going to Chase or Citi. I put that in quotes because M&T is still a $16 Billion dollar market-cap firm, and their "local" region is the NorthEast, but easier to work with, and the LO was able to make decisions at her level, and not have to conform to the corporate overlords.
I will say, I probably could have gotten a slightly better deal by using a broker, but I was younger and dumber. Good luck, and happy to connect you to a commercial broker if you want.
Post: Sufficient experience for lending?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Allen B., you'll be fine. I got approved for a loan from M&T bank with no commercial ownership experience whatsoever. Just experience from working in the field. Everyone needs to start somewhere, and as long as the RE you're buying is good, you'll find someone to lend to you. Have a professional loan application put together, with a short bio including your RE experience & list of properties owned (include sold date if you sold or are selling) will also put you ahead of the game.
Post: New Investor here: How do I find deals if I'm out of town?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Brandon Ribeiro:
Hey Marvin, id love to help! it sounds like you have a great plan and have done your research.
I know this is completely off topic, but Sellersville is the best name for a RE website. LOL
Post: My First Virtual Wholesale Deal
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Jaissem Nieto, make the offer. If they actually accept, then you can scramble to figure it out. I'm sure a public property like this has gotten plenty of lowball offers from homebuyers in the area.
Post: Needing First Position Mortgage on 62k Duplex - Illinois
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Kyle Baity:
@Scott Wolf Thank you for your question. I used a standard mortgage formula to compute this value. Please keep in my that my spreadsheet shoes a mortgage value of $62,500 with a $12,500 down payment. After running my mortgage numbers on a 20 year term on my BA II calculator, I yield the same results.
Keep in mind, also, this mortgage payment would not include escrow.
That's a purchase value with a $12,500 DP. Did you reach out to your local banks? Cause that's who is most likely to finance the purchase.
Post: Needing First Position Mortgage on 62k Duplex - Illinois
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Kyle Baity, have you called your local banks?
Post: How would you split a flip?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Scott Brewster:
@Scott Wolf as it is now, 50/50 contractor and myself and the Realtor gets an active client.
Doing the numbers that would be the best outcome for everyone BUT since the contractor wants to be paid as a contractor I'm running into an issue. If the contractor is managing and actively DOING the entire flip and remodel, what would you split it as is my question.
I'm essentially doing no work BUT taking the entirety of the risk, they are essentially doing ALL the work and double dipping. I don't want to be greedy but would like to be fair. They're running a business as well as helping me out, I'm helping them out as well as running a business. Would 60/40 or 70/30 be more fair until they can supply 30% of the property purchase so we're sharing some more risk?
This is a tough one. If you're comfortable with the arrangement, then it should be fine. And from my view, you can look at it that you're a private lender, getting some upside. Or, your a flipper using their own funds and losing out on some upside. I guess you need to look at the numbers and make the decision for yourself. If the ROI on your investment still makes sense, then go for it.
Post: Tenant occupied good or bad??
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Danial Cousino, everyone above makes good points. I'd just try to be sure that the tenant is paying on time, and verify with Bank Deposits if possible. I bought my property with 2 out of 3 units rented, and they've both been great tenants so far. (2 years in)
Post: How would you split a flip?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Scott Brewster, so the split is 33.3% to each party? Or 50-50 to you and the contractor and Realtor gets an active client?
Post: Advice for new landlord
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Bryan Sims, if you lived there for 2 of the last 5 years, you can sell it and not pay any capital gains on the gains you made. You say it didn't sell. Why not?