All Forum Posts by: Bryan Drury

@Blake Gentry

Are you talking about investing in Madisonville or Lexington? They are totally different markets.Madisonville is attractive to investors because of the price to rent ratio.I know of some investors from Owensboro going to Madisonville because of this.It is advantageous to have your license while also investing.Good luck

@Reece O.

Some of the loans they make are kept in house for their own benefit,while some may also be sold.So technically I guess that makes them a portfolio lender.They both are smaller regional banks that I think just operate in Ky.. They are flexible,creative in loan applications, and more investor friendly than larger banks.In my mind that qualifies them as portfolio lenders, not just the fact that they keep some loans in house.

They may loan on any property in Ky, not sure about that.Reason mentioning branch in your area is that would make it easier and probably ensure working with you.South Central has office in Glasgow,Owensboro,Lexington, and maybe others.Independence has more locations and may be more accessible for you. Private message me if you want contact info for loan officers I use at both locations.

As far as HELOC is concerned, I have not used them for such purpose yet, but will pursue in future because of the fiasco we went thru with PNC.Not user friendly and appraisal process was something to be desired.PNC puts no value on any acreage over 5 acres that your house sits on.First 5 Acres was valued at half its true value.8 acres more they gave 0 value.This was for our personal residence, not rental property.Needless to say I was not happy with the appraisal.Don't have HELOC on any rentals.Thanks

@Reece O.

I use South Central Bank and Independence Bank.Not sure if they have branches in Bardstown or not. Both are user friendly and have helped us

JG, Welcome to Bigger Pockets. I too am from Owensboro.It's a great place to learn,network.

@Chris Heeren,In the example you gave on the BRRR strategy where you had zero dollars of your own invested in the deal and your monthly cashflow was $400/mo your ROI would be infinity.Calculation would look like this: $4800/0= infinity, this would be on an annual basis. That's a good problem to have.If you had $1K of own money invested at the same cashflow then like this $4800/$1000= 480%ROI. Like i said a good problem to have.We have a few properties like that just not gobs.As you know this scenario is dependent on several things, one being that appraisal comes in high enough to cash refi you out and you bought low enough to be cashed out with minimal investment.Anyway I'll take 480% or infinity any day of the week. God luck

@Lee Haenschen,This is the strategy we use and it is very common among investors.We have a HELOC against our personal home since we have quite a bit of equity in the home. We use the HELOC to purchase and renovate the buy and hold rental property.We do make interest payments plus 1/360 of the a principal payment monthly towards the HELOC.After renovation and placing a tenant we go to our local community bank and get a long term loan that pays back our purchase plus renovation cost on the HELOC.And if we bought the property at a big enough discount and stayed on budget then sometimes we make money on the cash out refinance loan.Its not really profit because that money comes from the long term loan that replaced the HELOC,And yes the interest cost does affect cash flow to answer your question. Hope this helps, good luck

Depends on specific situation and tenant background.Had a tenant that is good as gold.Tenant had a brother in the Army that was killed in action in Afghanistan.Our tenant was his beneficiary.She collected a sizeable chunk of change, and wanted to prepay a year in advance. She was concerned she might spend it on frivolous things and not be able to pay the rent in the future.We discussed why not buy a house and get out of renting.She was afraid of the responsibility.We took the money and put it to work.

@Tyler Hubarth, We use our HELOC extensively. Just renewed it with PNC Bank. Rate is 3.25% which is variable. Cost of setup was about $425 which the bank paid and as long as we don"t close it out will not cost us anything. If we close it out then they prorate the cost over 3 years. Annual renewal fee of $50 that is waived as long as we have a checking account with them.The payback is interest plus 1/360 of outstanding balance as principal payment. Frustrating part was they gave very little value to the 13 acres we own with the house. About 40% of actual value is what they used in the appraisal.No other hidden costs and we have been using this method for a long time.Good luck

@Nick Murray,

I agree with @Dave Foster in that you need to make double sure the QI is indeed qualified and knows what they are doing.Otherwise you may be liable for paying all taxes plus penalties.Ask me how I know!Our local bank served as the QI and it went thru seamlessly, but almost went off the rails because of someone else.Conduct thorough research and enlist professionals to assist you and it will boost your REI career.Good luck

@William Higdon

Hello William,I'm in Owensboro,across the river from you.We have a project in Evansville currently and have done a few more in the past.I'm interested in future potential projects if you want to meet up sometime and discuss?Send me a message if you like.Good luck to you in the future.Thanks