All Forum Posts by: Leonid Sapronov

@Damar Hutchinson welcome! You've come to the right place. This is a great community with a lot of really great information. I am not a developer, but they are definitely on here - just search around.

Got it, this all makes sense. What about seasoning - can I do a rehab and immediately turn around and refinance or do I need to wait a few months?

Yep, that's what Mark is saying. If you buy and rehab, you'll be all in at $55k. If you buy turn-key, you'll be all in at $60.5k ($55k + 10%)). Now, I don't know where the ARV would come in, but I'm hoping that the ARV would not be lower than the turn-key value of the property. That's a good question, actually - @Mark Shaffar, how do these properties usually appraise when your buyers apply for financing? Do you guys try to hit the appraised value dead on or do you leave some margin?

2. So these would be conventional mortgages, even if they are in the name of an LLC?

3. Agreed. Although it sounds like you'd be saving a little less - 10% minus the cost of the rehab, right?

@Mark Shaffar Thanks! I have a few more questions:

1) How are property taxes in Milwaukee?

2) The bank that you are working with - can a new investor come in and expect to get 85% LTV financing? That's pretty good. What about the other loan terms?

3) Now correct me if I am wrong, but it sounds like you guys are willing to let the investor buy a house, pay for the rehab and, thus, get some value-added equity from the very start? You don't hear a lot of other turn-key providers advertising this approach - usually they just want you to buy their post-rehab deals, mark up and all. I like it!

@Mark Shaffar

Can you give a break down for a typical turn-key property that you offer?

@Thomas Landis - any luck finding that first multifamily yet?

It seems like there's dozens of sites that have emerged over the years. Is there one that stands above the rest? Someone must have tried to make an aggregator that pulls data from all the other sites. I just don't see having the time to manually search through 20 different sites. Or even set up 20 different filters and then parse through all the results.

@Jim Lefevere

Welcome! You've definitely come to the right place. Take the time to read as much as you can, learn to use the search tool and ask other members for recommendations to help you find whoever you are interested in finding - turn-key providers, property managers, banks, etc. Nothing beats the power of networking. Plus, most people here are suspiciously, even frighteningly generous with their time and advice. It's like they are under some kind of mass hypnosis. Pretty soon you are gonna be the same...

One way to do it is with a portfolio loan. Work with a local bank to get a single commercial loan for the entire package. If you get approved, you can probably expect them to finance 65-75% of the purchase price at 5-6% on a 10-20 year loan.  Of course, terms can vary, but this is what other people here have reported. Get the properties appraised and see if you can negotiate a discount for buying the whole package. Don't pay more than appraised value, unless you have a very good reason (its like buying a car at msrp).

If you need to finance the downpayment, you might have to get creative (e.g. use a HELOC).

Seller financing may be an alternative, but you need to ask.