All Forum Posts by: Account Closed

It all depends on what you want and what you're looking to do with the property. If you want to buy and hold properties, you're going to want them to cash flow well and have little expenses. Having equity in it isn't your primary concern here if you're not going to refinance it or sell it. So in my opinion, equity isn't really a concern here.

However, if you want to fix and flip a property, buying it at market value here doesn't make a whole lot of sense seeing as how your goal here is to buy at a discount, rehab the property then sell it at market value (or even above!).

So figure out what you're goals are, then find a strategy that fits them!

@James Taylor Good luck to you two!!

Hello BiggerPockets community!

I'm wondering if anyone has had experience using cross collateralization as a way to increase the LTV that the lender will finance. I've spoken with a couple lenders recently who told me that the term for placing my personal residence (single family) up as collateral for a down payment plus some cash, is "cross collateralizing". But I've also spoken with a lender who had no idea what this term meant. Red flag on the lender?

What kind of prepay are we talking? I had requested the loan length be 180 months, so 15 years. But I had also asked about cross collateralizing my own home to make up the difference in funds for the down payment since they were only willing to go out to 65% LTV on the property I'm looking to acquire. So my exit strategy for that is on the next deal I do, get into it with a good amount of equity, refi after 6-12 months, then put it towards the loan with Apex.

@Richard Huizar Thanks for the input. I like off the wall things. That means they're creative and at the end of the day, that's what gets the job done. Did you fill out the same 1003 Commercial App as well? I noticed it has a boat load of personal info on it.

I applied for a loan on a 5 unit multi family dwelling through PropertyGo and they shot back with a term sheet from Ted Kapnek of Apex Mortgage Company, which is a subsidiary of first trust bank. He sent me an email saying the following:

"Apex would be in a position to consider a 65% LTV on this property and use equity in another property that you own to get you the 90% you are looking for. Please provide the details, including purchase price and date, for the additional collateral you can offer.
We also need to know what your credit looks like. Do you have a recent report?"

I called the number and I had the chance to speak with Andrew Teller who was unaware of who PropertyGo was but later informed me that it is in fact a "legit" thing because Ted Kapnek (president of company) just started working with them. He told me in order to get to underwriting he needs the following:

1003 Commercial Application (attached)

Copy of credit report

Rent roll & expenses on property

Pictures of property

So I'm looking to know if anyone has had any experience with them, good or bad and what their thoughts are on them.

When you feel like all the doors have been shut in your face and you have nowhere left to go, keep going. Don't give up. Keep pushing forward. You have to be resilient to make it in this business, so make the most out of every situation you can. Found out a hard/private money lender was a scam? Get out there and find another one. Partnership fell through and now you're left picking up the pieces? Pick them up faster and get back on your feet, find another partner. There's 7.4 billion people out there, you can do it. Don't let failure be the reason why you give up. Remember why you got into this business in the first place...

@Account Closed I am a start up real estate acquisition company looking to get my first deal funded as well. Sending you a PM.

I hope I'm posting to the appropriate forum here.

That being said, I'm designing my business cards and I am having trouble on the "title" portion of it for underneath my business name. I'm wondering what other BP members put on theirs. "Real Estate Investor"? "Real Estate Professional"? "Real Estate Acquisition Specialist"? Or, did you choose to not have one at all. My business buys houses to fix and flip and to rent for cash flow so I personally like the "Real Estate Acquisition Specialist" but I also don't want to take attention away from the rental side of the business if that makes any sense...

I've also looked at "CEO", "President" "Owner" but none of them look right to me.

Looking forward to seeing different perspectives on this.

Amber

I've been talking with this company to fund my loan. Aren't all the fees paid in ESCROW anyway so as long as both parties deposit funds, I'm not seeing the issue here. Would it still be considered a scam if they work in escrow? I haven't seen this point addressed so I'm curious to know.