All Forum Posts by: Tyler Bains

I always say the best way to get a commercial loan is to establish a relationship with a commercial lender. Do you have a lender that you've taken to lunch or to golf? If not I would jump on that asap. It makes getting a commercial/portfolio/LOC much much easier.

Do you have a relationship with a lender local to you? Specifically someone who handles lines of credit, investment/portfolio loans, etc.? If not I would start there and explore your options.

If I can tempt you to look at Lubbock, Texas we have a ton of great deals that regularly pop up!

This is where using a competent agent becomes extremely important. You need a agent who understands investment brokerage. They need to know how to determine a reasonable ARV, what rent rates a property may bring, who to use as a contractor, who to avoid as a property manager, etc.

Relationship, relationship, relationship. Establish a relationship with a local commercial/investment lender and keep that relationship going. Portfolio loans become much more accessible when you know a lender personally.

Obviously lending laws are at play but there is more wiggle room in bank comfort when you know the lender. Then the underwriting priorities kick in and you have to meet minimum qualifications.

In Lubbock, Texas we haven’t seen the doomsday issues related to COVID and college rentals. We have Texas Tech University, Wayland Baptist University, South Plains College, and Lubbock Christian University so our college market is solid. We also are the largest medical hub between DFW and Phoenix and have an incredibly strong agricultural base. 

These have all been factors that have contributed to a steady and growing base of renters between college and family. I would say look at the area, look at demographics, and reach out to property managers wherever you are looking and ask them how their rental market has been.

.Hey @Paul Ballas welcome to BP! I would strongly suggest working with a top notch local agent, if you have questions about how to vet one let me know.

The biggest issue I see and hear about is working with a Realtor who has no concept of investment brokerage. From numbers to negotiation and everything in between you need someone who is confident and competent.

I would seriously consider a HELOC. If local doesn't work out there are quite a few national options I would recommend and a TON I would avoid at all costs! Definitely let us know what your local banks say.

Andrew,

It looks like you are on the right track! MF is definitely where it's at. The BP website is a wealth of knowledge. Just keep reading, digging into the forums, and attending the webinars. Ensure you are working with a Realtor who actually understands investing as many do not. If you have any questions on the agent side let me know, I would love to help in any way I can. Good luck on your REI journey!

Let me tempt you to add Lubbock, Texas to the list. We are the biggest medical hub between DFW and Phoenix so you could easily get an RN job. House hacking a VA loan is a great option. I would love to chat with you.