All Forum Posts by: Aaron Hale

Hi All,

I'm just about to close on our first investment property in the Akron/Canton area. I'm using a HML to purchase and rehab, but want to lay the groundwork with a small investor friendly bank(s) in the area to place the reserves and refi with when the project is complete. Any suggestions?

Jeremy, just like @Zach Zimmer, I it is always good to know a good handyman. Especially one interested in investing as well. My family is from and have a few propertiesthe in the Akron area. Let’s connect when you are  settled. 

Update: After some searching, I have found a HML willing to lend to me vice a LLC. In fact, I'm getting a better deal on the interest and origination. However, the property is in Ohio and I had been planning on refinancing with Fifth Third. My next objective will be to discuss this with their loan officer and find out about transfer fees. Thanks for all the great advice.

Hey BP,

I'm about to close on my first property which my wife and I plan to BRRRR. The property was a lucky find at auction but it will need a great deal of work to bring back to life.The original plan was to purchase with a combination of cash and HML.

Currently, we are at the stage in the process where both the seller and I have signed the contract and the title company is doing its thing. However, I've run into a bit of a snag. The HML I'd found requires an LLC.

I've read here on the forums and blogs that many banks are reluctant to refinance a property under a LLC that hasn't shown a history of positive income. One strategy which I was planning on adopting was to simply transfer title into the LLC after refinancing. Yes, I'm also aware of the due-on-sale clause and am willing to ask forgiveness over permission. ...but this doesn't jive with the HML.

The executed contract already has my name as the buyer. What are my options? It seems I’m stuck between a rock and a hard place. ...or, a bank and a hard money lender. Do other HMLs lend to individuals, should I be looking for another means of financing, or is there another method that will be attractive to all parties I haven’t thought of? 

Thanks all!

Thanks, @Michael Ablan. I'm coming up a little shy on my own cash and rich uncles. I've got a HML eager to give me a 6mo interest only bridge loan at 9.89% and 3pts but I was hoping for a less expensive option. The ARV could support the expense, but I'm not sure if the rent could.

By the way, I spent a few years guarding the northern frontier up there at.Ft. DrumI got to know Watertown fairly well while I was there. How’s the market? 

Thanks, Justin. Yes, it’s in Green/North Canton. I’d appreciate any local leads.  

I'm the recent winning bidder on an Auction.com with a bid of $64,800 on a 3bd/1.5/ba in aa A/b township outside Akron. The property will need at least $65k in rehab to reach a conservative $165k ARV but a possible $220k+ Depending on renovations.

I've got the cash to complete the purchase but will need to finance the rehab. Our long-term intention is to BRRRR this place and are wondering what the best course for lending might be.

I have been considering refinancing with a HML for 6mo with the rehab built into the loan, but was wondering if there were other less expensive options available.

For example, are there lenders willing to do HEL/OC on the cash equity I’ll already have in the house despite its current state of disrepair?  Are there other options I’m not aware of?

Thanks!

Hey BP. My GC has suggested butcher block counter tops for our new rehab project. Has anyone worked with this material for counters? 

I understand there is some maintainence, ie the occasional dose of.      Mineral oil. Could the tenant be relied on to perform this or will I need the PM to get this done?

Will butcher block stand up to tenant abuse? What about stains or heat? 

It sounds like a creative and warm  way to complete a kitchen but is it wise in a rental?

We are about to close on our first investment property in the Akron/Canton area and are looking for an an insurance broker. Thanks!