Sign Alabama Banking Rental Application Myself

Industry sign banking alabama rental application myself

conventional lending hard money lenders private lenders there's a million and one ways that people say you can finance a rental property business teresa this is your show let's dive in this is your show this is the show where i work for you directly taking your needs i'm going through the mls and i'm trying to find the best possible deal for you guys put down 25 that's the perfect way to buy this that's why real estate invests in the greatest industry in the world [Music] hey folks welcome to another episode of the mls search and analysis show here on holton wise tv as always i'm your host james wise and i am here to help you folks get your money right and i do that through the vehicle the investment vehicle that helped me get my money right and that is real estate investing back when i bought my very first property i was 21 years old working at a radio shack and i needed my brother to rent out the basement so i can afford it that's probably the back of his head that you are looking at right now folks fast forward 11 years later holton wise has sold over 200 million dollars worth of investment property we manage thousands of properties for many hundreds of owners the portfolio we run right now today is valued probably i'd have to guess in the 75 million dollar range right so you can change your life through real estate investing okay it can happen but what i don't want to do i do not want to blow smoke up your butt and i do not want to uh give you improper expectations and i think that there's a lot of people out there that are giving improper expectations right so you getting the correct information for me teresa that is uh first and foremost the most important thing to me okay so your situation right because by the way folks if you're if you're new to this show the way this show works the mls search analysis show i work with you guys one on one right so folks go to holtonville.com property search for sale tab mls search analysis package you order one video or a series of video we got three packs four packs ten packs right and then uh when you order these you do it online my team we send you an email and we need to get all the information there is to get about you right i want to know your wants your needs your goals your experiences i want to know what your credit profile is like i want to know what you're doing today what you're hoping to do tomorrow and down the road what you want real estate to accomplish for your life i need to know everything about you right so we try to get as much info as we can about you so i can put together a plan of attack for you to help you obtain this financial freedom uh you know or you know just grow your overall net worth right that's that's what i want to do but i got to do it the right way so after we come up with the plan of attack for you i then position properties that i think will help you accomplish that right and where you're at right now teresa uh i think you're in the very very beginning stages of this and i don't want you to get disenfranchised i do have a property um that i think would be a great property to target based upon your wants and what you want to do um but i don't know from the looks of things i don't feel like you are necessarily in the position to get that deal done today now the good thing is uh you bought a four pack from us okay teresa you bought a four pack so you're gonna get four videos i'm gonna analyze four properties for you but these are non-expiring they don't expire they get banked into your account with us so we're gonna go over a lot of stuff today and if at the end of this video uh you find that you're not able to to take this deal down don't you worry you can come back to me in 12 months and we'll knock out the second one we'll see where you're at we'll do the second video you can come back to me 24 months and we'll do the third video 36 months from now and a fourth of you can come back to me in 10 years if it takes you 10 years to get to where you need to be to take this deal down that's fine we will be here for you these videos folks when you buy these packages they never expire because this is not a get rich quick thing this is not on monday i want to change my life to real estate investing this james lives duty he was working on a radio shack and now he runs the biggest portfolio on the cleveland market i'm gonna knock that out by wednesday folks it doesn't doesn't happen overnight uh i mean my business right i'm 11 years into the business right now okay uh so things are going to take some time and these packages they allow us to give you the time and resources to be your long-term partner so with where you're at today you said you don't have a specific budget um because your credit uh is in rough shape and you are interested in working with private lenders seller financing and hard money lenders as far as private lenders and hard money lenders go let me just break down the difference for you private lenders okay there are no such thing as private lenders who advertise what those are those are hard money lenders okay everybody thinks that they're two different things uh and they think that private lenders are a better deal there are folks out there that are saying that they're private lenders and they're advertising but i'm gonna tell you guys cutting through the if you're a private lender who's advertising you're a hard money lender by definition that's what you are you're a hard money lender right so there's hard money lenders out there theresa um the interest rates are going to be very high you're still going to have to have a decent amount of money probably like 20 to 30 percent uh of the property and then probably uh maybe like 50 or so of the uh renovations if we do properties that are need to be renovated and the way the deals are in this market uh there's a very very tight inventory okay there's very tight inventory out there so there's not often enough meat on the bone to to get in for a brand new person to do a deal and pay a hard money lender and have it make sense uh before they refi it out and with your credit being bad you won't be able to refi out anytime soon so you just your profits are going to get eaten up by that hard money lender so i i don't want you to prematurely uh try to go out and get bad financing just to try to do a deal because another thing with your situation is you've explained to me your job uh it's a blue collar job that's great i don't want to say anything bad about your job but just based upon the salary uh that that type of job pays i i'm gonna guesstimate based upon all the info you give me and what i know those salaries to be is you don't have a big cushion here okay so when you're getting into deals where you got to do hard money lenders i mean there's there's probability that the deal could go south and you could be in a worse off financial position right there are risks in real estate investing and you need to have a bunch of capital to cover those risks right so i really don't think you are a person that should be targeting hard money loans right so like let's i'd rather see you wait and get your credit profile fixed get some savings so you can do the traditional financing before i want to watch you go down the hard money route okay so that's that's that the next thing you said is private lenders right like i said anybody that says they're private lender and they're advertising they're really just a hard money letter so everything i just said right there boom hard money lenders that's what that is other than that a true private lender that's someone who's not in the business of loaning money right so this is people like your mom your dad your brother your uncle things of that nature the guy that works down the hall from you right people that you personally know have personal relationships with and you approach them right they're not in the business of lending now if you could work out a deal like that where you find somebody that wants to get in the game and you guys want to team up and they have some money you could do the leg work you've reached out to me you've reached out to hold wise you've ordered this uh set of videos you could be their only point of contact they don't have to worry about talking to us in order and analysis videos right you could find that person and that could be your pitch to them if if they wanna loan some money to you or do a jv where you guys partner up and you just handle all the leg work i mean that would be fine that would be great if you can go down that route that'd be awesome i would say we should pause after this video wait till you find that partner and let's utilize the next videos uh for you and your partner that that's that's a route you could take and as far as like what the terms are it's whatever you and that person can agree upon right there's no set market because again they're not in the business right they would be people that are interested in getting in the business and they want to work with someone they trust i.e you right so that's what a real true private lender is right so i can't give you a private lender i could only give you access to hard money lenders right so you would have to on your own find that private lender and then the last thing you talked about was um going to be seller financing and i can give you access to seller financing though let me pull up holtonwize.com all right so if you go to the property search for sale tab right uh just why we're here everybody if you guys want to see properties we are selling investment properties for sale show we are the number one seller rentals in the cleveland market mls search and analysis show if you want to work with me in the same way that theresa is click that order yourselves a package but then right here guys click here for mls access all right this is where you're going to get those seller finance deals teresa now i am a licensed real estate broker all right i have access to the mls that's where the properties are bought and sold companies like zillow and realtor.com right they get access to the mls as well but uh they aggregate the data at a later time so if you're looking at zillow or realtor.com for properties your your data's old it's a few days old right what this product is this is me giving you my direct broker access to the mls system so the moment a property goes on the market you know about it and i as a broker i'm able to pre-sort that information that data for you so you only get the data you want so i have all these seller finance single family houses the moment a single family house goes on the market where the seller is willing to accept some type of seller financing you will get the email that minute in real time i've also done it for the multi-family properties and then if you scroll down i've done it for commercial properties so there isn't going to be like this uh like big like like vault so to speak of all these seller finance deals just like waiting to be plucked right seller financing is the best financing you could ever get usually uh because it's you know just it's you and the other person it's what you can work out doesn't typically go on your credit report so whenever these deals are available people want them right i myself being in the business i probably do oh i don't know i probably maybe get a million uh to two million dollars a year in seller finance real estate every year i don't even uh really go looking for it but people are looking for me now right because i'm all over your you know youtube homewise tv is pretty big we have the biggest portfolio in cleveland right so when people want to sell their houses you know who they going to call they're going to call the guy whose trucks are driving around town all the time that say i buy houses right so i probably do like one to two million dollars with the seller financing every year right i'm just acquiring properties uh and i'm able to really grow my net worth uh in addition to that though people are always putting them on the mls but the moment they go on there there's usually a bunch of people that want them and they get gobbled up so you want to probably get all three of these feeds and then the moment something pops up what you want to do is you want to either reach out to that seller directly see what terms they're willing to offer or you want to reach out to me and my team and we'll do it on your behalf and we'll put together one of the videos we could use one of the videos out of your bank right so those are the three ways that i want you to look at those other options right that is what i want you to do in regards to hard money lending private money lending and the seller financing and then the last thing that's what leads us to the property that's what leads us to the traditional route that's your traditional financing and i have put this property up it's unknown to me it seems slightly unlikely you'll be able to take this property down today if those three routes don't work what i want you to do is work on fixing your credit score and work on saving up capital so you can take down deals like this when you can eventually take down deals like this one and get into that long-term financing uh this is how you'd want to do it until you can like get into deals like this uh the right way though without like such a big stretch just wait right and again you can come back to me in 12 months two years three years four years right another way you could possibly even do this deal is if you did find that private partner perhaps they put up all the cash okay you handle the logistics and then when it comes time to refi out since your credit's not too hot maybe they will let you use their credit as well right that's what they do they provide cash and credit you handle the logistics and you guys work out some type of uh equity split right if you're able to accomplish that that'd be a way you could take this deal down so it's either going to have to wait you're going to have to figure that out or we're going to have to focus on those seller finance deals but this is what's on the other end of the rainbow for you this is the pot of gold at the other end of the rainbow however long that takes you that's up to you but what we have here 524 railroad street paynesville 4477 this has been on the market a very long time over a year 384 days and i targeted this property for you because you really like lake county you live near lake county so i thought this one would be awesome for you sixty seven thousand five hundred dollars and the reason that it's on the market so long is because i think that price is is too high because this house it's it's ugly it's gross right you see like nobody wants to live in a house where the floor looks like that like that's not gonna work right it's just this old outdated house and this is where we as investors this is where we eat this is where we come in this is where we make our money okay we take these ugly homes right and we make them beautiful so if you can either get yourself that private partner now or down the road if you're able to do this type of deal by yourself this is how i want you to approach it we focus on a deal where it's been on the market for a very long time it's overpriced we would want to come in try to pick it up at forty thousand dollars just based on the photos i'm looking at i'm seeing approximately twenty five thousand dollars in renovations what we'd wanna do cosmetically fix it all replace those floors pull the you know on the kitchen and the bath we typically put like a matching vinyl floor over the ugly floors the rest of the homes there's usually hardwoods that we refinish paint all the walls patch all the holes we do agreeable gray as the wall paint white trim throughout new fixtures in the kitchens in the baths and then that leaves us like five thousand dollars to possibly work on some of the mechanicals being the roof hot water tank in the furnace we want to make these offers contingent on a third party home inspection if upon our receipt of that third-party home inspection we determine that in addition to the 20 000 or so we got to do cosmetically there's more than five thousand dollars worth of like big big ticket items like roofs furnaces hot water tanks will want to go back to the sell r renegotiate a lower price but if there's not if there's only that amount of stuff what we have is we have a forty thousand dollar acquisition a twenty five thousand dollar rehab which puts us at a sixty five thousand dollar investment that will get us a section eight tenant paying a thousand bucks a month we bring in a thousand dollars a month on average we will spend 481 dollars to operate the property and that's with houlton wise operating the property for you leaving you with an average noi of 519 a month or 628 a year so on a pure cash purchase that would be a cap rate of nine six and then this is where that partner comes in or this is where that um patience of you waiting till you set it up where you can do it yourself comes in when you could actually refinance it out to a long-term 30-year fixed interest loan they will loan you 75 of the value of the property right because we did all that work i don't think it's gonna appraise for only what we have into it which is 65. i think it's gonna be worth more i think it'll be worth 75 000 when that happens the bank will give us back 56 250. thus leaving only 8750 into the deal now you got another 56 000 to work with for your next investment that turns this investment into a 36.3 percent return on investment now if you try to do some deal like this too early okay too early and you try to go with a hard money lender uh remember we only have like a ten thousand dollar gap between what we've got into it and what our projected appraised prices so with you paying all those origination fees and the interest and maybe just maybe your renovation went over timeline or sometimes renovations go over budget or maybe you thought your credit was good enough to do the refi but it turns out you couldn't then you're just screwed you're you're up a paddle you're up creek without a paddle is what i'm trying to say so you don't want to do that i don't want to see you do that because remember we're only really working with a 10 000 gap which turns this into a hell of a deal uh or kind of a dud and i don't want to see you do that right so i want to either see you get the right partner or weigh or focus on those seller finance deals so that's everything i got for you theresa based on where i think you're at that's what i think you should do right now so uh reply all with some feedback uh to this video right reply all because you're gonna get this email uh it's gonna come from me but members of my team are also going to be cc'd on that email so keep us all in the loop so we could know what to do going forward if maybe you do find a partner and you want to try to take this deal down great let's write up that offer for you now if not just let us know hey i am going to sit on this sit on this information i'm going to go out and look for partners and i'm also going to fix my credit uh in the time being just bank my videos and i'll reach out to you when i'm ready just let us know what you want to do and remember how you come back to me in five years i'll still be here your videos will still be banked and we'll still be ready to pick up right where we left off so good luck teresa that's all i've got for you on today's show folks if you're a new viewer out there make sure you do yourself a solid and smash that subscribe button because holton wise tv is real estate investing made easy thanks for watching subscribe to houltonwisetv for more financial information education and entertainment [Music] you