All Forum Posts by: Aaron Cullen

@Chris B. I've gone with 30yr mortgages in my name so far and have been getting 4.65 to 4.85 fixed. I've been going with small banks directly. For your S Corp property Jack has good advice to reach out to local banks, this one will be harder to get a low rate with a conventional loan. You will need to be more flexible on that one. One thing to ask a bank if get more conventional loans in your name is do they count the income of the rentals or do they have a 2yr seasoning period before they will count the income. If you make a lot of money it isn't a problem but will be very quickly if you don't. Good luck!

@Jason Unrath looks good, if you like the area and the property I would buy it. Just verify your reno estimate and your insurance on that address. Looks like a great house hack, good luck!

70% LTV is the max money the bank will give you. So the closing cost will come out of that 70%

I've done it few times now and everytime is the same, I had a property appraise for 100k, they will loan 70% = 70k, closing costs are 4k, I get 66k at closing (if I paid all cash) with a loan for 70k.

@Jason D. look up Marshall Reddick in Newport Ca. they have a lending division. They are local so not sure they would lend to just anyone across the nation but they are great to work with. I have a few others I've talked with as well that will loan with the property in personal name.

Is your credit union giving you a conventional loan with the LLC as the owner? If so that's awesome and haven't found that. Another reason to work with local banks. With most banks that will not be the case.

@Derek Walvoord 

Hi Derek - The issue here is you are trying to get a conventional loan for an asset that is owned by a company. From my experiance they don't go together. It's like trying to put a round peg in a square hole.

since it sounds like you've run out of time or getting close to it with your hard money loan... I would reach out to local commercial banks to obtain a commercial loan on your property. You will pay a higher interest rate and a shorter term but you shouldn't have to season it at all.

When using the BRRRR if you want a conventional loan you "MUST" purchase the property in your own name from day 1. That's when the clock starts ticking on the 6mo seasoning period. This is what I do then you can put the property in an LLC down the road once you have the refi loan. I use hard money as well and they do not require me to put the property in an LLC. Find a new money lender.

@Account Closed

Congrats on your house hack! That's the way to do it. Since you will be living there I would just self manage the other unit. It will be great experience going forward. I would defiantly recommend reaching out to a local RE lawyer to get a lease going. It shouldn't be very expensive and then you are covered going forward. I would make a post looking for a local RE lawyer and see what pops up. Good luck! What part of Indy is your duplex?

@Kyle McCorkel Creating a "packet" for the appraiser is key. I've done this for a few BRRRR properties as well and have gotten great results most of the time. Mine are in Indianapolis as well. John is steering you in the right direction, great advice and list.

Congrats @Joshua D. ! Hats off to you for getting up and getting after it. Keep up the good work! Glad to hear you love what you do.

I use the BP Calculators all the time, might be worth it!

@Andrew Campbell great post. Thank you for sharing your strategy that got you to this point. I can back up this strategy as it's basically what I'm doing but with a less appreciating city and I invest out of my area. Keep up the good work! I'll have to go check out your post on the 200 unit now.