Engaging Western Capital to Start Your Investment Property Portfolio
Transcript (auto-generated)
Hi, it’s Akini. We get calls from potential borrowers saying, Hey, I want to get going on my investment property portfolio, but how or when do I engage with your company? Or what is the process to get my loan going? We’ll talk about refinancing later. So for now, let’s talk purchase loan. First thing we need to do is get you pre approved.
We’ll create a file at Western Capital to determine a range for the purchase price you qualify for and a timeline for that closing. We will complete the Western Capital application with a TBD for the property address, since we don’t know what that is yet. We’ll also need a copy of your credit score from Credit Karma or your bank, because we don’t want to pull your credit at this stage.
We will need to know how many projects you’ve completed in the last three to five years with ownership interest on title. It’s okay if you don’t have any experience. We’ll also need your government ID, your current address, We want to make sure you discuss with us a timeline for that closing date so that we make sure the loan is ready.
The second thing we need is how to get you representation. This is a good time to find a realtor or a middleman. Whether you choose to get representation or you choose to do this yourself, you will need to find a few properties that will meet your investment goals within the pre approved range. Traps when you don’t have representation include illegal property types, illegal kitchens, zoning, association complications, and arm’s length negotiations.
Three types of purchase loans we typically do. Rehab, ready to go rentals, and new constructions. I’ll focus on rehab fix and flip. For this video, the first thing we recommend is adding a contractor to your team Someone who can help you figure out the vision for your after repair value or ARV The size of the rehab budget you need to get there They should pull data with comparable properties to help you determine what the market will pay for the targeted ARV And ensure that your project would indeed be profitable You must also create a phase timeline that delineates the work you do on the property immediately after close You may have to create several budgets before you secure a contract on the property you settled for.
Please look at our budget video for more info on how to navigate this. Once you zero in on a property, we will need the address to get you the property specific pre approval letter, as the sellers will need this along with your offer to secure the purchase contract. We may have to repeat this process for multiple properties until one of your offers is accepted.
Getting a signed purchase contract is a milestone to be celebrated because you’re now on your way. Send us the purchase contract so we can begin processing your loan and order appraisal and title work right away. Since rehab money is reimbursed, along with the down payment, you must come up with money to begin the work, and the lender will reimburse you via withdrawal requests up to 100 percent of the rehab budget according to your phase out plan.
As the loan gets nearer to closing, make sure you have your construction crew ready to go so your new property does not sit without activity for long. Because every day a property sits, you are losing money. In our next video, we’ll talk about ready to go rental and new construction. Give us a call to talk through your scenario today.
