Tips to Remain at The Top of Your Game

Nov 28, 2022

In this solo episode of the Small Axe Community Podcast, Nico shares tips to remain at the top of your game. on becoming a successful small axe investor. He advises borrowers to work with local lenders who are more likely to offer aggressive rates and terms. Nico recommends talking to local banks, as they are currently giving the best interest rates in the market. He also advises caution when considering bridge products, as they can be risky due to the low LTVs. Finally, Nico recommends having fixed-rate debt in place for at least five years. Additionally, Nico gives us a final recommendation on why recommends networking with lenders and co-sponsors to find deals that may fall through or to bring in new capital. So, with no further ado, let’s dive in!

 

[00:00 - 04:11] Stay at The Top of Your Game

• The Fed has been raising rates, and this may impact the market, and we, as entrepreneurs, need to account for it.
• Don’t quit or be scared by this! In fact, there are fewer people looking at the same deals, so it's a chance to seize opportunities
• Be in constant communication with lenders to understand their terms and rates.

 

[04:11 - 07:43] Local Banks Offer Best Rates Amidst Tight Competition

• Local banks are a great option over agencies. They’re still giving good rates, have a local experience, and may have assets in the area that you’re looking for.
• Remember to build as many relationships as you can!
• Underwriting is always a risk, but if you're cash flow positive, you can dive deeper
• Avoid bridge products unless you're getting a three-year term minimum plus extensions

 

[07:43 - 10:07] Tips to Have in Mind

• Test the deal to see if it still works at 7 or 7.5% interest rate at the end of year two or three
• If you can't refinance due to debt service constraints, then the LTV may have to be dropped and it might not be worth it to refinance
• Don't be afraid to give GP share away to your co-sponsors for bringing capital. They could get a deal done or help you get a deal done

 

[10:07 - 11:55] Closing Segment

• If you want to reach out to Nico, feel free to do so and give him a call at 516 660 6912!
• Also, if you’re interested in a free mentorship from him, stay tuned or reach out!

 

 

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.

I believe that you only need a small axe to build a lasting empire. Let’s start building yours!

 

 

To know more about me and all the real estate opportunities you can find, you can connect with me on LinkedIn, Instagram, and Facebook, or check out my website https://smallaxecommunities.com/ and book a call with me.

 

 

Tweetable Quote:

 

“You shouldn’t stop because everybody's worried about a recession. Just keep going. Look at deals. Stick to your criteria of what makes a good deal.”. – Nico Salgado