When I hosted an informational seminar recently about the intricacies of real estate investing, the depth of knowledge that the audience put on display had me a bit surprised. The turnout from people interested in learning more about how to become successful real estate investors also exceeded my expectations.
Approximately 50 people attended the event, which I hosted in collaboration with Mark Vernon from Prime Lending, Ron Proper from Corning Credit Union, and Chris Huff from Hutchens Law Firm. There is no doubt that the seminar could not have been a success without their expert advice and guidance, and it’s a pleasure to have a chance to thank everyone for their help, especially Michael Otelsberg of Century 21 Sweyer & Associates, who served as emcee, and the Carolinas Real Estate Investors Association.
The seminar was presented in a question and answer-style format to engage the audience and invite participation. Questions ranged from how to fix and flip investment properties and generate monthly cash flow, to how to borrow against home equity and choose a loan with the best possible terms and conditions.
One topic that was of particular interest to the audience was that the guidelines for obtaining conventional financing seem to be loosening up.
Another topic that generated a lot of interest among the audience members was cash flow loans. With these types of loans, investors and lenders analyze the total amount of cash flow that a property will be able to generate, whether it’s residential or commercial, before they figure out how much capital they will provide for the borrower.
For independent contractors and freelancers who diligently work each April to maximize their deductions and find ways to reduce their gross taxable income, cash flow loans can be a critical tool for breaking down the barrier to real estate investing. The point is that it is all project-specific, since no two properties are alike. Similarly, there is not a one-size-fits-all approach for assessing the ability of an individual to repay a loan, which is why it’s always good to get together in person.
People don’t like to say no and they like to know who they are working with, and this is true for private lenders as well as financial institutions.
As an example, several private lenders and real estate investors were able to form new relationships as a result of meeting each other at the seminar. The investors had been using expensive “hard money” loans to finance their endeavors at fixing and flipping rental properties. Because of their new partnership, the investors now have a different path for obtaining the financing they need. This will help the investors save thousands of dollars over the long term and I am confident that it will be mutually beneficial for everyone involved.
For information about the Carolinas Real Estate Investors Association, visit www.creianc.org. To find out about the next seminar or to figure out if real estate investing could be a viable option for you, please contact me at the number below.
Patrick Stoy (NMLS# 39527; Market Consulting Mortgage NMLS# 39166) has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.