All Forum Posts by: Alex Keathley

@Donald Flynn

Check out oil and gas leases. May or may not help you. Find a financial advisor who specializes in this with a long track record. Definitely not something I would try doing alone. You could really get burnt if you’re not careful.

@Jay Hinrichs

Makes perfect sense due to the circumstances. I've heard of numerous stories about this on the coasts, but haven't seen much of this in my area or the Midwest in general as of yet. I've talked to a few big dogs who were around in 08 and they said two of the top five portfolio lenders basically shut down operations for REI in 08-09 (Of course the I used one of those two lol). I've talked with all three of the other lenders who stuck around in 08-09 and actually really hit it off with one. The real test will be to see how my next two cash-outs go with them though.

Jay, I see it from their perspective for sure and I understand the reasonings completely. It just stinks getting dropped by one of banks that I really came to have a good relationship with. My area has a very stagnant appreciate rate compared to the coast, so it won’t be felt quite as harsh when the market drops imo. Investors in my area saw a dip in price like the rest of the world in 08-09, but they said it was not as drastic as one would think. I couldn’t imagine being in your shoes during 08-09. Core banks are a must in this business and can really be your saving grace. I hope this new bank can be mine. I have been extra cautious with my offers here of late as well to compensate for the market dip. After listening to your story on podcast, I have major respect for you man. Your drive and determination after 08-09 is very admirable. It’s pretty cool seeing you respond on my post too. Lol I really appreciate the feedback! You rock! 🤟🤟

@Joel Florian

I am sorry to hear that you got dropped by your lender. It is nice to know that I’m not alone though. It was one of my first partners I formed a relationship with when I got started. It stings a little, but I get why they did it. It sounds like this will continue to become a trend over the next several quarters. Like I mentioned above, I’m not going to let this stop me. Keep moving forward no matter what! Appreciate the response Joel! I hope to see you bounce back as well!! 👍🏻👍🏻

@Todd Rasmussen

I got you Todd. That’s just what I call my balance sheet, cash flow analysis, rent roll, etc. lol I’m right with you there man... After a long week it’s a pain to get everything together. 😩

@Kerry Baird

My exact thoughts Kerry!! It may be a tough nut to crack, but I am not giving up anytime soon! As my old basketball coach would say “Depth wins Championships”. I am networking like hell even more now to ensure something like this won’t set me back. Appreciate you Kerry! 👍🏻👍🏻

@Darius Ogloza

Imo it’s not about the full profitability of the company because that is there and has been there from the start. My yields for them and myself aren’t too shabby for a newer investor. It’s about not having much experience and being the youngest guy doing this in my area. Not too many investors in their younger 20s in my area. For example, I have met with an investor with the same strategy, net worth, stable job, experience, etc who started in his mid 40s in 2016 and has had no problem whatsoever with being cut off or dumped. I’m not dreading on being dumped. I also understand the whole concern with the pandemic, but at the end of the day if I was them I would bet on me. 😁 I am glad I found another bank who sees and understands my strategy and business model. Appreciate the response Darius! 👍🏻👍🏻

@Todd Rasmussen

I really like that idea! Make them jealous and wish they didn’t dump me! 😂 Quarterly statements may not be much to show true profitability, but it keeps my name in front of them at the end of the day. Appreciate the advice Todd! I will be doing this for sure! 👍🏻👍🏻

@Russell Brazil

Makes sense, but at the end of the day I know many investors in my area who are using them for the same purpose, returns, risk, goals, etc. The only difference is experience and age and maybe more capital. Lol I get why they are doing it. It just stinks be young guy starting out. I never burn bridges. I thanked them for the opportunity and told them I’d hope to strengthen our relationship later on. I think after another year or two, we could start a new and they could potentially help my business later on. If the other bank stays true to their word though, I don’t see a reason to go back. Nice to have back up options at the end of day though.

Hey there BP Community!

As the title states, I was dumped by my lender today. 😢 When I was out and about running errands I received an email from my lender stating that they will not be able to do any more cash-out refis for my company until I have a more proven track record of profits. They said I would need to wait close to a year until I could do anymore with them. I have had a great experience with this lender and have successfully BRRRRed five homes with them the past 6 months. I was shocked to receive this email.

To give a little background, this lender is a portfolio lender. I met with them at the beginning of the year when I was searching for a new partner. I've heard great things about them from other investors, so I thought it would be worth a shot establishing a relationship. I told them exactly what I planned to do in the next 3-5 years with the BRRRR strategy and they were all about it. They said there would be no limit on how many loans, 80% LTV on cashout and no waiting period after you buy to Refi, etc. Seemed like a perfect match.

I reached out to quite a few investors and after talking to them today, they told me sometimes that bank just does that to newer investors. I guess I was just moving to fast for that relationship. They aren’t ready for the commitment! Lol

Anyway, I immediately called two other lenders who I have also heard great things about and one of them said that they would be in it for the long haul with me if I chose them (Very similar policies as other bank for LTV, number of loans, etc). I want to believe this bank, but how am I supposed to know they won't do the same thing and break my heart? Lol Also, is it best to have multiple lender relationships to ensure best results? Some of the investors say no way, stick with one and others are the complete opposite. What do YOU think?

@Kim J.

Too many inconsistencies imo. I would try to cut ties if possible. If you want to rent to them for 6 months, that wouldn’t be a terrible idea either. Talking badly about you openly to cleaning personnel is a big red flag. I think it’s awesome and a very nice thing you want to help them out, but you can’t shoot yourself in the foot. Trust your gut. Hope this helps. 👍🏻👍🏻