Formal Intro from Sacramento, CA

[Jake Weir]

Hi All!

I think I've been signed up for a while and searched questions here and there, but I wanted to formally introduce myself in an effort to better connect with everyone online and offline.

My name is Jake and I would consider myself pretty new still. First got involved in real estate when I bought a bank-owned duplex in 2008 (owner occupied). Have been learning what NOT to do with tenants ever since. haha.

Since the first investment, I got my real estate license and partnered with a colleague to buy a SFH in the area. That's where I stand at the moment.

Have just a couple items/questions (really there are sooo many, will limit to two) to sum things up:
-Got my "Sacramento" key word dialed in!

-BP podcasts have been really well done...and quite entertaining.

-What local banks offer portfolio loans?

Are there turn-key type offerings in the area?

Cheers!

[Kyle J.]

Originally posted by @Jake Weir:

@Kyle J. Thank you for the info. Is this a financing strategy you've used in the past? If so, would love to hear more about an example of what that financing is like (cost, points?).

This was a financing strategy that I explored and attempted to use, but it never panned out. What I mean by that, is that I inquired with quite a few local banks what loan programs, rates, rules (overlays), etc they had in preparation for me buying several more rental houses around the beginning of last year.

I really liked what Union Bank had to offer because they were a portfolio lender and could be more flexible with the number of loans allowed. Many lenders will only allow up to 4 loans (or less), but that's their own rules (overlays). Some lenders (like Union Bank) will allow up to 10.

Not only that, but Union Bank was offering me 15 yr fixed rate loans and even 30 yr fixed rate loans, as well as other options such as ARMs and interest only loans. Basically anything I wanted, even if I didn't want some of those programs. :)

Their rates were very competitive too (example: mid 4% with 2 points).

I switched a sizable chunk of my banking/funds over to Union Bank to show I was serious about doing business with them and was more than able to cover the amounts of the loans I would be seeking.

However, in the end, I found that it is nearly impossible to get offers accepted in the highly competitive markets I was bidding in if you are trying to buy with financing. I even made financed offers not contingent upon financing (in other words, even the financing fell through for some reason, I would still close with cash). No dice. Too many cash buyers out there with cleaner all cash offers were winning every time.

I ultimately had to switch over to making all cash offers myself and that's how I ended up buying the properties.

Hope that helps.