Need Ideas On Building Next Phase Of Business
I am new here, so I will give some background first.
A little less than 3 years ago, we moved to Jacksonville, FL, specifically to invest in RE full-time. Our strategy is buy & hold (5-7 year term). We purchase homes cash, make any necessary repairs, rent the homes to qualified tenants and then perform a 100%+ cash-out refi. We have acquired a nice portfolio of single family homes this way.
As many of you know, those days are over. Due to the existing credit crunch (particularly for us stated income folks), the cash-out refi has become nearly impossible to find.
As the market changes, so must we. We are now setting up a new approach, in which we sell a turn-key product to investors. What I am trying to do is to identify the best groups to network with, in order to find these investors in mass. For example, Self-directed IRA groups, Wealth Advisors, etc.
Does anyone else have ideas on how to build such a network? We are not looking to work with individuals but groups, who have investors who are looking for absentee RE investments.
Hope this makes sense.
Thanks, in advanace, for any feedback!!
Called Chase, Wachovia and Wells Fargo this a.m.. All three either had an issue with Stated (complete shutdown at Wells Fargo) or the fact that I have more than 10 properties in my name.
I am putting a mortgage broker on the case.
Any additional info appreciated. (on this topic or the Original question)
Thanks!
ITB - I know stated income is really hard. Hence the new business plan. We have been to the small banks - have some guys working with us but not in the full capacity, which we would like.
I was encouraged by the thought that there might still be a product out there - and will contunue to keep my ears open - as we happen to prefer the buy & hold - long term wealth building approach.
Appreciate your feedback.
Bargain - why so nasty, buddy?
No debate here - you can do whatever you want. I could not possibly care less. To each his own. There is more than one was to make money/create wealth in any market.
As for whether or not my properties have a replacement value at less that what I owe - how in the world would you know what I owe on my props? We happen to be at a pretty low LTV across our portfolio. Thanks for your concern. We will be just fine.
Oh, and thanks for nice, warm welcome. Jacksonville style.
So to get back on topic, I started looking for people around the country who are trying to do what you are suggesting as your "new approach". I found this guy (YPOChris might know of this guy if only for geographic reasons) who pitches to out of state investors. The claim: It has never been easier to invest out-of-state. With the click of a button get instant access to all necessary due diligence: Appraisals, Inspections, Public Records, Tons of pictures, Contractor Estimates, YouTube Video Walk Thrus
This guy (http://www.wholesalemi.com/) is in Detroit, not Jacksonville, but I think this turn-key approach is a viable method for getting interest (and capital) from out of towners.
Quote:
On 2008-08-19 18:27, omicron3000 wrote:
There are some nice HUD products available for single and multifamily property.
<font size=-1>[ Edited by omicron3000 on Date 08/19/2008 ]</font>
What are the products? Do any of them work for non owner occupied?
HUD has programs for owner-occupied, and non-owner occupied. The typical owner occupied are your FHA homeowner loans, they usually cover 97% of the purchase price, with 3% down. Designed for first time homeowners.
Non-Owner Occupied (For Real Estate Dealers and Investors)
FHA 203(k) for single family rehab
221(d)4 for Construction of Multifamily
HUD 232/223 Aquisition and Refi of Assisted Living Facilities/Senior Housing, and Multifamily
You can find many of these on the www.hud.gov and parties like HUD, SBA, and VA insure the loans. They do not actually solict these loans, but by default loan brokers involved in this, are typically called underwriters as well.
There are other programs with the secondary markets of Ginnie Mae, Freddie Mac, and Fannie Mae. USDA solicts a grant for redevelopment of any rural area with a population of less than an certain number probably 3000.
More info on HUD Products
http://www.thirdpartyhud.com/pages/sections.htm
Quote:
On 2008-08-19 20:54, keitachan wrote:
Quote:
On 2008-08-19 18:27, omicron3000 wrote:
There are some nice HUD products available for single and multifamily property.
<font size=-1>[ Edited by omicron3000 on Date 08/19/2008 ]</font>
What are the products? Do any of them work for non owner occupied?
Excellent advice on SCORE ITBInvestor. I forgot about them, I need to get in contact with them.
Thanks for the feedback, TBI! I had never heard of that SCORE before - what a great concept - will definitely give that a shot.
I also really like your terminology with the banks - and firmly beleive that it is all about the pitch and finding the right banker. You might have to ask 100 but it only takes one to say yes.
I have probably met with about 15. They all seem to like our operation, our LTV position and our plan for the future; however, they are also very skiddish right now, when it comes to RE. The relative newness and rapid growth of our operation (we bought 40+ homes in 2.5 years) makes them a little nervous. I get a lot of "Great execution and plans.....come back and see us in 6 months or so, when your business has aged a bit more...". I will continue to pursue the commercial options and will certainly add some of your banking terms.
That Detroit website also gave me some really good ideas. We do have a website in place - now we just need to drive the right kind of traffic.
We are scheduling presenations throughout the country, to speak at REIA meetings (particularly in areas where cash-flowing product is not as readily available). We have our first road trip next week! Will let you know how it goes.
Thanks again for taking the time to think this through with me. I really appreciate it.
Any updates to this Jax?