Lender based on cash flow strength

[Chris Silvas]

I am purchasing a property that is projected to generate gross rents of $3,000 per month. When I am done rehabbing the place, I am going to be looking to cash out about $60-$70k to do another project. This would be a ballpark figure of about $500 per month in a note (assuming 6%, 20 years). As I am not employed by a company, and as I have just started to buy rentals, conventional banks will not lend to me right now. Is there any person or company I can talk to who will lend based on the strength of the cash flow. I believe  generating $3k per month and asking for a $500/month note reflects very strong cash flow metrics. I live in the Houston area. Any help or direction is greatly appreciated. Thanks. 

[Charlie Price]

I haven't figured out the trick yet either. I have a soon to be 30 unit complex. My first MF larger then triplex.

I started with totally vacant and foreclosed REO complex had 23 units 3 years ago or so. Year 1 about $40K gross, year 2 - $155K gross $68K NOI, year 3 - $240K gross $155K NOI (self managed). Should be 20-30% higher this year as I continue to bring additional units on line. I'm working slow and converted a couple larger units to 2 small ones and converted storage space to additional units to make an extra 7 units bringing the 23 up to 30 when I finish in the next few months or so. Had to use cash for the purchase.

I did get a local bank to give $200K early on when I began renovating units. I've gone back and asked if I could get more $$ based on current operating income. They want to see two years bank statements with rent deposits (small problem as some is paid via PayPal with debit cards, some is deposited to two different bank accounts and some of course cash that I put straight to expenses (or a weekend boat trip now and again :-). Bank want 2 years tax returns, don't show a lot cause we own a lot of rental property, and my financials, which are fairly strong $2M net worth and 740 credit score, but a big black eye with a bankruptcy back in 2011 due to being over leveraged on rentals and the market crash. So difficult for us to get bank loans currently. It does feel much better and less stressful to not be highly leveraged though!