Question on Commercial Financing:
Today we had several people on the Real Estate Graduate call and all had good input. We had Rob from Florida today on the call. He is one that I had been coaching in real estate in the past. Rob has been working on purchasing a 7-plex rental property there.
When we were having our coaching sessions in the past we had been discussing his issues with the property that had come up as he was going through the offer and inspection process.
His biggest issue is something he brought up today on our graduate call.
He had originally worked to get financing on the property with a credit union but was turned down. He informed all those on the call today that he had been working with another lender recently to get it financed but had been turned down with them as well.
Ana, from Spokane mentioned to Rob that commercial lending can be difficult. She brought up the fact that with that type of lending the lenders can work to qualify the borrower in several different ways.
We discussed that he could call the last lender back up and discuss with them all the different ways that they had worked to get him qualified. One of these ways is where the lender can take the monthly rental income from the new property and then calculate 75% of that amount as extra income for him each month. This could allow Rob to qualify for the loan. Depending on the factual answers that he gets from the lender he could then try another lender that is motivated to look at all ways possible to qualify him for the loan.
Rob was very appreciative for the advice and support from those on the graduate call.
Question on Wholesaling of Properties:
David from Virginia also asked a question about wholesaling. He wanted to know if when he gets a property under contract if it would be best to have an attorney check it for extra liens before he hands it over to the potential wholesale buyer. We discussed that the buyer in turn would have this work done already as part of the closing on the property so it doesn’t make sense to have the same work done twice on the same property.
We had a good discussion on these main topics and other smaller ones.
Happy Investing!
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