All Forum Posts by: Aram V.

Aram, that was my problem. I thought everything was fine because rent was coming in for a year and I heard no bad news. Then rent stopped. Then I learned the truth.

what do you mean by "

Fake rents being deposited.

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Yes, I have had a third-party verify both properties conditions. It's only been 7 months.... but things seem legit on the up and up In Michigan in my experience... can't say anyting about Indy.

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I'm having a somewhat decent experience with Morris Invest. Not perfect but... I have bought 2 properties with them and things are rolling. The houses are definitely not worth 10k, more like 40k-60k range. Single fam and duplex. I' have mine in Michigan, looks like Indy has been a nightmare with Oceanpointe.

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Originally posted by @Ryan Arth:

We always do replacement cost, but I have a friend who only does ACV. His average all in is 42k in a more rural area so he figures if he loses one someday his losses are somewhat capped.

We prefer higher grade assets, so we go with replacement coverage.

Ryan,

Like you I have replacement costs on my properties , but like your friend, my 2 properties are in more rural areas; valued at about 50k for one , and 60k for the other. Would the savings be worth the extra risk? not to mention the co-insurance penalty, that has my head spinning, lol. Thoughts?

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Originally posted by @Jason Bott:

@Aram V. It can be messy, just like hiring a handyman off of craigslist. If managed properly, it can work.

It's dependent on so many variables, that you cant make a blanket statement on it.

it up to the investor, their resources, the type of property they are insuring and what other insurance options are available for that property.

In FL, if you have a $50,000 1960 frame building, that has an ACV (Cash Value) premium at $500 and the Replacement Cost premium @$4000, you may go with the ACV and save $3500, but take on the additional risk.

Thank you Jason,

I think I'm getting a better idea on what the differences are and the many variables that are involved.

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Originally posted by @Sean Tarpenning:

We have worked with Flagstar bank out of Kansas City. They have been great through out the process. How much are you currently leveraged?

Hi Sean,

Not sure how to accurately calculate my leverage but -

HOME#1, Single Family Home $50k - 50% Cash Down / 50% - Small Loan from Discover Loans

HOME#2, Duplex $60k - 20% Cash Down / 80% - zero % business credit cards - Fund&Grow for 12 months membership

All unsecured loans.

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Originally posted by @Brian Garrett:

Originally posted by @Aram V.:

Originally posted by @Brian Garrett:

Is there a reason you need to bundle the properties together in a portfolio loan?

You will get more favorable terms/rates through a traditional cash out refinance.

No, there is no reason for bundling. I guess I'm trying to kill 2 birds with 1 stone. These 2 properties are both about 50k each.

It can sometimes be a challenge to find a lender on $50k properties so you may end up having to bundle them together.

Thank you Brian. Yes, pretty tough, I called about 12 to 15 banks and most laughed at me or gave up at the first technicality "Property in an LLC....NO, You don't live in the same state...NO. The houses are how much? ... NO". These are the first guys to actually give me a chance. But I'll keep searching in the forum... I'm definitely open to lenders.

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Originally posted by @Brian Garrett:

Is there a reason you need to bundle the properties together in a portfolio loan?

You will get more favorable terms/rates through a traditional cash out refinance.

No, there is no reason for bundling. I guess I'm trying to kill 2 birds with 1 stone. These 2 properties are both about 50k each.

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Hello BP Peeps!
I'm a newbie to real estate investing and would appreciate any knowledge you can share. I bought a single family and duplex in the past few months and would like to apply for a Portfolio Loan: Cash-Out Refinance on both Properties. I called a handful of local banks. Flagstar Bank called me back and sounded enthusiastic about lending me the $.

Two Questions:

- Does anyone have any experience with Flagstar Bank?

- Is it wise for me to ask for a Cash-Out Refinance Loan? I'd like to buy more properties and use some of the extra funds to pay off the loans on these first two properties

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All Forum Posts by: Aram V.

Aram V. has started 11 posts and replied 62 times.

Post: Morris Invest Case Study

Post: Morris Invest Case Study

Post: Morris Invest Case Study

Post: Replacement Cost vs. Actual Cash Value

Post: Replacement Cost vs. Actual Cash Value

Post: Portfolio Loan: Cash-Out Refinance?

Post: Portfolio Loan: Cash-Out Refinance?

Post: Portfolio Loan: Cash-Out Refinance?

Post: Portfolio Loan: Cash-Out Refinance?

Post: Renter's Insurance ???