All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1797 times.
Post: Catch 22 of No Down Payment for Investment
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Ed Goble, there's no silver bullet here, unless you're willing to pull equity from the house you have paid off (which you don't) or sell it and buy something cheaper to live in (or a multi-unit) so you have a free and clear home (or cash-flow), and cash to invest.
Otherwise, start building up the war chest to invest in the future.
Post: Is it possible to wholesale an commerical property
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
1) yes you can wholesale a commercial property
2) you can't buy or wholesale a property without a contract.
I'd be wary unless you know other buyers in the area you can flip it to.
Post: Real estate agents needed
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Courtney L Atkinson you should connect with @Abel Curiel, he's a beast of a realtor and an investor as well.
Post: Looking for lending advice!
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Jeff Jansen, if you're using a local bank, you can get much better interest rates. You may need to wait 6 months to satisfy their seasoning requirements. I'd try to get a blanket mortgage on both 'deals' you mentioned, as trying to find financing for the $50k property alone may be tough.
I don't think that using a private lender will net you a better interest rate than 7%.
Also, while your way is way more delicious, it's conventional financing, not confectionary.
Post: Beginner Commercial Property Financing
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Trevonte Mosby, it also depends on deal size and location. If you're in a smaller metro area, you can make a connection with a local bank, that can help. Or you can find a commercial mortgage broker if you're in a larger more competitive metro area.
Good luck, and feel free to reach out if you want to bounce ideas off someone.
Post: Direct Commercial Funding Inc.
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Alessandro Renzetti:
I have a short testimony for this company but I'm truly amazed about the negative review I'm reading online about DCF.
This company has funded 5 commercial projects for my organization, one if which was an international investment and most of the others were mining gold, silver and oil.
I have a partner in Charlotte NC, Kevin Bilderback is another developer and business man who owns Bluedot Medical located there in Charlotte. This very deal was funded by DCF a couple years ago and they also funded a recent project for Mr Bilderback.
I believe since this company is a private lender and most developers like myself don't allow our business (lender) to be published more often then upcoming or borrowers going through the process may doubt DCFs legitimacy. In addition, the application fee we paid was totally secured by there commitment by law and so we proceeded with the payment and they followed through as committed. And, that was the only upfront fee associated with the process as it already included the appraisal cost.
Kevin, brought these negative reviews to my attention and I have to say that I am amazed to see anything bad about this company. I beg to oppose!
Post: does this deal make sense?
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Vincent Harris:
@Scott Wolf Thanks again for all of your input, we've adjusted our search to include WF. I'll be sure to post again soon!
NP, if you need a realtor, I'd be happy to make a recommendation.
Post: Behind on Rent Payments Due To Covid19 in NYC
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Natasha Singh, sorry to hear about your situation.
I would reach out to an attorney to see what your options are. I like Henry Graham of Cooper Paroof for LL & Tenant issues. Not 100% sure that he handles the tenant side of the equation.
Post: Question For Private Lenders
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Michael Cox, the private lender is the bank in this scenario. They will want first position lien on the property. As for timeframe, some are flexible, some are not. I for one just offered a deal for 10% months 1-6 and 12% for months 7-12. Any extension past that would be needed 60 days out. As for "getting their money's worth" they usually don't have equity in the deal, so the more interest paid, the better. A hard money lender may be a better route, as some will lend you up to 90% of ARV, usually with draws involved (i.e. you can draw the funds as the project progresses, so they know they're not just giving a check to someone that hasn't done any work.)
Good luck!
Post: does this deal make sense?
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Vincent Harris:
@Richie Thomas My lender says they don't require PMI since they're a portfolio lender. I never thought to second guess it, but I do remember asking the question a few times. Looks like it was built 1963, but you're right the homes in this area definitely skew to be a bit older. I haven't calculated any repairs since I figured I could get any repairs done myself while living there, of course I see that still leaves me without calculating cost of materials.
The $6 a month for insurance is definitely wrong in the calculations - realistically I'm looking at $80-$100 a month for homeowners insurance. I hadn't really considered STR either - depending on what I can do with the attic, that could be a great idea!
@Scott Wolf Thanks, I realize there's a bit missing to my calculations, even then it's still not a solid deal right?
I'd love to move into Duthcess County, but I work much closer to Westchester so I have to be mindful of my commute. So far the only Dutchess properties that could make sense are in the Fishkill, Wappingers Falls, Hopewell and Pawling areas - and then I'm hard-pressed to find what I'm looking for. Although, my only source of leads is through the MLS.
The added cap ex and insurance would make this deal even worse.
I feel like the home in Peekskill is easily replicable in those towns you mentioned. In WF, I see three homes that are sub $400k and one even has 3 units instead of 2.
Good luck, and keep posting on here so people can help analyze your deals.