boudroux
108 Posts |
 Posted - 08/07/2008 : 10:20:16 AM
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I’m looking for that needle in the haystack lender who is smart/experienced enough to look at where I’m shopping and see the reality of the market I’m active in and not just think that it is the same as OC or LA counties, understands the buy and hold game, wants well secured loans on nicely repaired, well purchased single family homes that are professionally managed by a company that has deep reserves and need to keep recycling that money into more homes.
What I need: Reasonably priced private money that allows me to hold onto inventory as rentals.
What I offer: Well repaired single family homes that are professionally managed, occupied and in good condition that have $275 or more in monthly positive cash flow. I also offer a piece of the upside/equity under a buy/sell agreement so not only does the lender get monthly interest but they also get a piece of the equity when the home is sold in the future.
Proposed Terms: 8-10% interest, 65-70% LTV, 5-7 year balloon, points OK, and I give the lender 3-5% of the upside when the property gets sold under a buy/sell agreement, loan to my corporation only, secured by a first TD.
My Goal: To acquire and hold 50-60 homes in the cities of Perris, Riverside and Lake Elsinore.
My Experience:
17-23 I built and remodeled custom single family homes, 23-34 (present) residential mortgage originator, single family investor and property manager. My corporation currently has $200,000 cash on hand and I’m looking for an astute private money person/company who understands the game and wants to make good yield and then a nice bonus when the loan matures and the home gets sold.
Summary of Areas:
I buy only in certain neighborhoods in Riverside County CA, if you put all the neighborhoods I shop onto one page of a Thomas Guide it would fill about 2/3rds of the page. I’m very specific on where I look for homes. Where I shop the typical home has lost over 60% of value from the peak. I’m currently buying homes between $85,000-130,000 that all sold for well over $350,000 just a couple years ago. The typical household makes between 45,000-55,000 in annual income. The typical house in good condition that can be purchased via FHA financing ranges between 135,000-200,000 in today’s market. These neighborhoods are all well located in the cities of Riverside, Perris and Lake Elsinore. These neighborhoods are now at a price point where the typical household can truly afford the typical house and the odds of the values dropping much further is pretty remote. There is solid church, shopping and employment close by and the sale activity for a well priced home in these areas is very solid. The last house I rehabbed and retailed (2 months ago) received multiple offers, and listing agent friends of mine all get bombarded with multiple offers on good inventory that is well priced. The specific homes I look for are 3-4 bedrooms, 1000-1800 square feet, built between 1950-1990, middle of the block, no major roads, well located to schools, shopping and employment and very much in demand for rentals.
I have a very specific property management plan on locating and securing tenants that I will discuss in person with a prospective lender. My renter plan comes straight from my mentor who self manages a portfolio of 213 single family homes. He has been self managing rentals since the 80’s and has the best marketing plan for finding tenants I have ever seen. He is amazing and he mentors me on management and acquisition.
I’m serious and committed, have been around the block a few times, have the cash, have a full rehab crew and need that one lender to take it to the next level. I have two houses that fit this exact scenario right now that I’m looking to put a loan in place so this is not some “what if”.
I have a couple ready to go right now.
Brian
brian@nospam.hollandforloans.com (take out the “no spam” part to contact me)
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