All Forum Posts by: Brian H.

@Garrett V.

Struggling with some financing on a fantastic two property, 5 building, 11 unit deal right now. 

Are you still pleased with the results from CoreVest?

@Greg Downey

I was talking with a commerical portfolio lender today and was basically rejected because of my income not being quite high enough. Any recommendations on where to look? I am googling portfolio and commercial lenders all around me. Sending introductory emails to people in those departments... 

Hey everyone,

I am under contract on 5 buildings that span two side-by-side properties. Great rental income. 11 total units, 8 currently rented out to long-term tenants. Just the 8 that are rented are bringing in about $4,200/month... I am under contract for $200k. This is a crazy great deal. When fully rented, they bring in $5,750 per month. My ROI would be about 32%.... they sellers are just way up in their years. They didn't pay a dime for the properties since they were inherited... and are just tired and ready to sell.

My issue is finding a lender. I see now that I need to likely go with a commercial loan with a portfolio lender. I was talking to one over the last few days and even though the rent roll is crazy high, they still need me to make more money (I make about $43k), have a much larger down payment (they said 50%), or a cosigner... The 15Y term kills me with such a high mortgage payment though I would have zero issue paying this mortgage payment with the rent roll on these units and the great rental history. So I need some help either finding a more flexible commercial lender or I need some creative ideas on how to make this work. Also, I have about 80k in capital but REALLY want to conserve as much as I can for a flip once I get these properties under my belt. I have one person on board for $10k of the down payment and maybe one more on board for as much as $20k of the down payment. Any ideas are very welcome! I can't stand the idea of losing this deal!

Hi All,

Am under contract on 5 buildings that span two side-by-side properties. Great rental income. 11 total units, 8 currently rented out to long-term tenants.  Just the 8 that are rented are bringing in about $4,200/month... I am under contract for $200k. This is a crazy great deal.

My issue is finding a lender.  I see now that I need to likely go with a commercial loan with a portfolio lender.  I was talking to one over the last few days and even though the rent roll is crazy high, they still need me to make more money (I make about $43k), have a much larger down payment (they said 50%), or a cosigner... The 15Y term kills me with such a high mortgage payment though I would have zero issue paying this mortgage payment with the rent roll on these units and the great rental history.  So I need some help either finding a more flexible commercial lender or I need some creative ideas on how to make this work.  Also, I have about 80k in capital but REALLY want to conserve as much as I can for a flip once I get these properties under my belt.  I have one person on board for $10k of the down payment and maybe one more on board for as much as $20k of the down payment.  Any ideas are very welcome! I can't stand the idea of losing this deal!

@Chris Mason Thanks for the quick response and the information. Also... What about a portfolio loan? I'm not super educated on those so I'm not quite sure. I'm reading up on them more now. Thanks again.

Hi!

So, I am under contract for 11 rental units in 5 buildings. 3 units in one, 2 units in the other four buildings, all on two side by side properties.

I am being told I cannot, per Fannie and Freddie guidelines, finance this with conventional 30 Y residential lending. I was told I would have to originate a conventional loan for each individual building, even though the seller has the bundled in one package.  This would be complex and obviously cost much more in regards to title searches and policies... 

Is commercial the only option here? Normally I would have figured this out before the offer but I had to jump on this deal because it is an incredible opportunity... but now I need to figure out how to finance it.  I have maybe 30k covered from private investors. I was going to use that as part of the down payment to keep as much capital in the business as I can... but I know I cannot line up anymore from private investors that I know.  

Anyone here have experience with a situation like this? Curious if I could grab any advice on how to proceed with this...  The commercial lending seems much more expensive and I am not sure I have been in business (~1 year) long enough or can show enough revenue to qualify in the first place. I can't stand the thought of losing this deal. It is one of those amazing, rare opportunities.

Thank you so much!

Hi!

So, I am under contract for 11 rental units in 5 buildings.  3 units in one, 2 units in the other four buildings, all on two side by side properties.

I am being told I cannot, per Fannie and Freddie guidelines, finance this with conventional 30 Y lending.  I was told I would have to originate a loan for each individual building, even though the seller has the bundled in one package.

Anyone here have experience with a situation like this? Curious if I could grab any advice on how to proceed with this... 

Thank you so much!

Originally posted by @Russell Brazil:

Originally posted by @Brian H.:

Originally posted by @Russell Brazil:

I like rent growth.  I now only buy in areas where rent growth is strong.

 For a newbie investor... what are some good methods you have used to determine the rent growth in an area you may not be super familiar with?

 Just market knowledge of the supply and demand in the area. Higher income areas tend to have high demand, increasing populations, increased commercial development (not increased residential development)

 Cool. Thanks for the response, Russell. 

Originally posted by @Russell Brazil:

I like rent growth.  I now only buy in areas where rent growth is strong.

 For a newbie investor... what are some good methods you have used to determine the rent growth in an area you may not be super familiar with?

@Danielle McClelland

I just turned 36 earlier this month. I am under contract to sell my first flip. It closes on 11/30. That will be deal number 1. It took over a year because of a number of... educational issues....  but I have learned a TON during this time and still stand to make a decent amount of this one. Next, I plan to keep flipping to build capital and slowly accrue rentals... looking at an interesting deal on three properties that total 11 units right now.  We shall see!  I struggle with having started this late sometimes... but I have to remember that I cannot do anything about that now. Just time to start steamrolling in a forward direction!