I do it a lot for clients. We have a rental product that requires no income docs, just an appraisal for value and expected rent. Typically works best for clients with several properties that can't show enough personal + rental income on taxes to cover all the mortgages. We can go to 75% LTV on a cashout to pay off the HML. I have one client with 30+ properties in St Augustine. All were on one huge HM line he has and we're working through then 2-3 at a time over the last few months. As he gets the money off his line, he's buying more and starting it all over again. Been a great client for me.
Who does the expected rent valuation? How does that part work? Curious how your client has access to so much hard money too, family money?
wolfpck and I have done this strategy on a couple properties. Pretty straight forward and not all that different process for getting the finance worked out. That hard money interest and fees can add up fast though so just have to be prudent on that front.
The appraiser does a 1007 rent schedule and gives an expected rental income. If it's a purchase, we use that. If it's a refi, we get a lease and then use the lower of the lease and the 1007. On the refi, say 1007 says $3200 per month but client has a lease for $3900 and can show $3900 received for last 3 months, we can use $3900 and ignore the 1007. We just need the expected rent to be $1 higher than new PITI. If it's less, we can still do it, but rate jumps about .75%. It's rarely an issue though. As for the line he has, not sure the relationship. It's some insanely rich 90 year old man that he calls his angel investor. The old man must do it for other people too bc my client has referred a few other investors to me to use the program and we had to pay off the same old man. He's going from 9% on his line to high 3s and low 4s depending on LTV. Only negative is now its a personal loan so all of the mortgages will show on his credit but that's worth it for the savings. I had another client opt to only do 2 out of 75 properties bc he needed to keep his DTI low for a $20m project he's working on. So the credit reporting affects people in different ways. There's no way around it for us though. We can't opt to not report to the bureau.
Is there a real estate and mortgage experts thread? If not there should be! If not I'll try here. We picked up a small property in Oklahoma that "by owner." It's currently in probate but expected to clear. The owner is trying to do the paperwork, and set up a place to deposit ernest money. I'm wondering what documents and pitfalls we need to worry about. Any advice would be welcome.
Honestly that's out of my area of knowledge. I rely on a processing team and title office for all of that stuff.
Trying to raise funds for me to move right outside North Cascades National Park and live off the land and host yoga/ayahuasca/plant medicine/rave retreats. And also airbnb the yurt and other building on the property. And then build two more income-producing units. https://www.redfin.com/WA/Deming/6727-Greystone-Ln-98244/home/53569482 Just need $1.9M, bois.
Mine's hitting the market Monday. Time has just become the most important thing in my life and it takes up too much.
Well after a stressful few weeks we are back at set to close on the 23rd. The day before we would have lost our rate lock. We were originally scheduled to close this week but the current owner and the neighbor had a crossed up quick claim. They had tried to deed each other about 20’ of land so that the property lines would make sense but the lawyer who wrote it up somehow worded it so that each person deeded their own land to themselves. Blew everything up for a bit and I was sweating losing our rate lock from 2.5 months ago. Had to be at the bank by today so we slid in just under the tag. Fucking pumped! looking forward to this sunset view going forward and getting the rest of my family moved close by.
So my property outside of Olympic National Park has been a non-stop adventure. Construction costs caused my building estimate to more than double, and then rising interest rates made it more difficult to cash-flow. So, I'm looking at alternative STRs. Maybe another tiny home on wheels, maybe some glamping. It's 1.2 acres, surrounded by forest, and is a pretty sweet piece of land. Septic plus all utilities already installed. I found a company called Jupe that makes "high end" glamping tents: https://www.jupe.com/ -- they're a startup out of Southern California that recently secured $9.5M in funding. No idea if that's a lot for a startup? Sure sounds like a lot: https://techcrunch.com/2021/12/07/jupe-series-a/ Eat your heart out, Gallant Knight https://outdoorsmagic.com/article/jupes-new-off-grid-shelter-gamechanger-or-glorified-glamping-pod/ Had an hour long Zoom meeting this AM with their founder. Their pitch is they will come and put 5-6 glamping tents on your property, free of charge. You just have to provide land and amenities (bathroom, etc.). All revenue is split 50/50. They also do a ton of online marketing and social media stuff that I don't fuck with. On one hand, it seems like very little risk. On the other hand, if it's too good to be true, then it probably is. I'm meeting with my contractor this Friday to go over a plan for a large deck that could serve as a big space for either a tiny home or several tents. Maybe quote a shower area. To be continued...
Granted, it's Naches, but this can be had for the same price, and the wine cellar is fucking ridiculous.
If things aren’t working out or their company goes under, when can you kick them off your property and build your own place? If some hooligans throw a rager that messes up your deck and their tents, who pays to have it all fixed in the event you don’t recover from the hooligans?
https://assets.website-files.com/61...7db96b17b_Jupe Partner Agreement [Sample].pdf Doesn’t seem terrible but doesn’t seem great, either? You pay 5 grand for a tent, take care of a lot of the day to day work, and then you get to split everything 50/50 for 5 years? After which they get their tent back?
Well, I wouldn't expect them to offer a contract that overly benefits the other party and puts them in a hard place. They also dropped the $5K "licensing fee," so I pay nothing -- they manufacture and travel on-site to install/set-up free of charge. I get what will hopefully be an income-producing unit on my land free of charge, and I have to manage the property just as I do my other Airbnbs. I actually spoke with another one of their customers for like 30 minutes last night, guy down in Oregon that runs a big event space in an old growth forest - similar to my property (but his is a lot bigger): https://www.troutcreekwildernesslodge.com/site and https://www.troutcreekwildernesslodge.com/jupe-one He was very complimentary of them. They brought a team to the site, helped him lay it out, and have already been back twice in less than a year to fix an electric issue and repair a ripped tent. Said they have monthly calls with all customers to address concerns/gain feedback. Nothing but positive things. I'm basically part of a Silicon Valley start-up now.
With the caveat that I know I am not the target audience, "SpaceX Engineered Glamping Pod" made me gag.
He was wearing the same hat and bandana during our Zoom call. I don't know any silicon valley tech bros, but he seemed to fit the stereotype. But he was professional and seems to know what he's doing. I'll take any mother fucker's [SpaceX Engineered Glamping Pod] if they're giving it away. Your wife is obviously not a golfer.
Yea, going over it with my contractor this Friday. Want to build a big deck that has a communal area, then will need 2-3 bathrooms and 2-3 showers. Not entirely sure how we're going to set it up, but I'll figure it out.
Closed on my first rental in Dec 2021. 30yr amortization with a 5yr balloon. Been really fun to watch these interest rates go nuclear as that 5 year clock ticks on. fortunately it was a very, very cheap house that I can cover in lump sum if needed, but man do I wish I could've found a more traditional loan
Second place is currently going even better than the first. But man adding another makes things complicated. Gonna sit on the sidelines for a bit and take a breath before looking to add another. And rates, the economy, and housing values are a little spooky so we’re paying ourselves back our initial investment a bit at a time then going to see what happens with everything and maybe do a third after taking a year off adding one.
Also place #2 rate was 1.375% higher than place #1 and we locked in place #2 rates in November 2021. Real good timing even with the jump.
Put an offer on this place today. Listed for $375k, I escalated up to $405k: https://www.airbnb.com/rooms/22988135 Sold for $450k cash. Motherfuck
People complain about anything. We advertise "Must bring own linens" . Renters know this, book knowing this, bring their own linens, and then complain about it in the reviews.
Owners, if you can afford the $250-$1000, an EV charger or at least a 220 plug accessible from your parking is a very big positive.
We have people bring their own towels because they kept fucking our’s up or just straight up taking them. Have considered doing the same for linens.
It's a 7 day rental in the 4WD area of the OBX. It's a tenor vacation rental. There are no roads, have to drive up the beach and over the dunes to get to it. A lot of rentals in this area do it this way. Hell when we stay in a 2 nighter my wife brings linens.
Spelled Corolla wrong, it's not there. You obviously don't know what you're talking about with regards to the area and how things are done so I'll stop talking to you.
Excuse my typo. Yes, I only grew up near there and been to Nags Head/Kitty Hawk/Outer Banks probably a couple hundred times. I know nothing about the area. Keep enjoying your shit reviews.
There are wild horses in the area. Years back but had a guest complain about horse shit on the property
Yeah, you turn left when you get off the bridge and the road turns to sand. Oh and there are horses. It's an awesome area. I love it up there. That doesn't mean it's absolutely ridiculous to tell ppl to bring their own sheets when you're renting out a house for multiple thousands a week.