financings can occur, the quicker investors can get back in the hunt for finding other rehab opportunities. • > Continued from :: PG 75 Phone’s Ringing ... NowWhat? at the risk of talking myself out of going to that house because, “Oh darn, they’ve got a mortgage, and they owe too much, and I could never pay them that much.” Another reason for not asking about loan amounts is that you risk that seller answering the question. The sellers could talk them- selves out of pursuing the conversation with you, by saying to themselves, “Oh darn, I can tell by the voice on the other end of the phone that my loan is too high. This is never going to work.” Further, this is private infor- mation. I am not going to ask strangers over the phone how much they owe on their house. Even if the deal ends up not being right for me, I am going to go to the house of every lead I can get to because: > Let’s say they owe too much. I could assign that house to some investor willing to pay more than I would. What they are willing to pay might satisfy the loan balance.

rolling around in one’s head. Then decide. • > Continued from :: PG 59 Fewer is Better -When Renters Stick Around like the reputation of any of those small business owners, is critical to getting new custom- ers and maintaining custom- ers—or tenants, in our case. Don’t underestimate your role as a new or part-time real estate investor and how important your reputation is when it comes to occupying and successfully sourcing great tenants. After all, these are your customers, and they are a key to your success. • having certain key informa- tion in hand. That information typically includes: 1 Purchase price 2 Rehab budget 3 Square footage 4 Added square footage (if footprint is being expanded) 5 Estimated duration of project 6 Estimated after-repair value 7 Borrower financials (monthly income, debt, net worth and cash reserves) The borrowers’ support- ing financial records (bank statements, etc.) may take a bit of time to gather up and > Continued from :: PG 73 Need for Speed

so should be among the top tasks. Borrowers should also be prepared to undergo back- ground and credit checks, and to provide information about the contractor expected to be utilized. They should also have at hand copies of the forma- tion documents for their pur- chasing entities so that signing authority can be verified. This information is usually enough to enable a lender to make a basic preliminary decision. As credit checks are run and broker price opinions or apprais- als obtained, there may be further but if a borrow- er is ready with the key informa- tion described, the better asset-based lenders should be able to make prompt decisions. requirements if values aren’t confirmed— GOODTHINGS COME TOTHOSEWHO ARE PREPARED Most delays in the lending process are due to lenders waiting on borrower docu- mentation. Borrowers who are prepared to supply their financial information, rehab budget, contractor track record and any broker price opinions available for the property will enjoy a much speedier borrowing transac- tion. The sooner that property

> Continued from :: PG 13 Senior Housing as an Emerging Asset FOR FURTHER INFORMATION The National Investment Center for Seniors Housing & Care offers an extensive listing of industry resources at: sources/industry-links/ • > Continued from :: PG 29 HowDo You Move from SFD to Commercial Investing come in handy in the future. It is also possible to become a developer on very small projects. Small projects contain all the steps the larger projects encounter, yet the small size dramatically reduces the risk. Examples of this could include buying a small commercial lot and building a new retail or single-user office building, or buying a small existing build- ing for adaptive reuse. THE BEN FRANKLINMETHOD One of our greatest Amer- icans, Ben Franklin, is said to have made decisions after reducing the pros and cons of major decisions to a single sheet of paper. He would draw a line down the center of the page and list pros and cons. When one reduces his or her thoughts to writing, it stops those thoughts from

96 | think realty magazine | mar :: apr 2016

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