All Forum Posts by: James Grueser

Eddie,

You may be right that most banks are finding this too complicated.  I have approached some local banks in Indy and may need to go that route again.

I will reach out to Wells Fargo.  Thanks for the good adivce.  I will keep everyone posted on the progress.

Curt,

B2R is a good product except that they kill you with so many fees on the back side.  The nice part is that you do combine a group of houses and only make one consolidated payment.  

I will definately share what solutions I find if any.

The fight continues!

Hello,

We are active real estate investors that live in California but invest out of state. The cash flow is awesome in Midwest so that's where our proverbial arrows are pointed. Currently we have 20 properties with 1 in Houston, 3 in Arizona and 16 in Indianapolis area. Our mix is 19 SFR and one mobile home park. Okay, I share with you my real estate to get some input and share some brick walls we've been hitting.

Us as lenders - we're a Dream Team for any lender. We have awesome W2 job with excellent income. Very low DTI and FICO of 750+ so getting approved is not an issue for us.

Desire:  Consolidate all of our properties into a working line of credit rather than the cashout refi's we've been doing.  We have worked with B2R and have 7 properties already with them but this products is very difficult to work with and the fees were painful to deal with.   We have a couple of the other properties financed on short-term with some hard money, that was easy but not the foundational line I want to expedite building with.   We own 6 of our properties free and clear so even with the financed properties we still have plenty of equity.  Spitballing here we have approximately $1,600,000 in appraised so if we got a working line of credit at 65% we would have $1,040,000 line.  Gobble up the existing loans we'd have approximately $300,000 to fight with.  Paying off the line with all proceeds from all cash-flowing properties I have will help us expedite the "rinse-n-repeat" model giving us flexibility to have some steroid growth style action for our biz.    Since we are taking ZERO out of the real estate biz we should be a wet dream for this kind of product.

Challenge: I have floated this desire out to the universe so far and I've been hit below the belt numerous times! So far I've gotten "we only lend in California since you live in California". I've also gotten "we can do similar product with standard loan like B2R". Many of smaller banks in AZ and Houston will only do LOC on properties in their city.

Frustrated and dazed....am I dreaming to have a working line of credit with the cash-flowing fully tenanted properties?  Would love someone to throw me a bone.  Connect me with the right people I'll  be good for them and they for me.  If you do so I'll be happy to throw some beers and sugar your way!

Jim G

Jim,

Please drop me a line so we can connect and ramble more, LOL!   Great stuff and I intend to meter for sure no RUBS.  I have already gotten 2 bids and would love a chance to talk to you sometime in the next couple of days.  I'm headed back to Indy first week in March.  Drop me a line [email protected] or give me a call #714-469-4212.

Thanks!

Jim

Russ,

Good direction, the company I'm having give me a bid is going to be on site in the coming week to do the complete assessment of the entire system.  Good news is that I'm close to having the local city help me with paying 60% of the entire replacement.  I'll keep you posted.  Thanks for the input.

Jim

Jefferson,

LOL, thank you so much. I heard this from a couple of people so i will avoid the RUBS. In Indiana they are very open to sub metering so finding we can use the Minomess 130 type system is the play. I am getting my final quote in the coming days but looks like it will be in the $11,000 - $14,000 range. With what we're paying the ROI is great! Thanks for the other website.

Jim

Gentlemen,

Thank you for our input, truly appreciated.  Yes, I guess my definition of BIG BOY money is a line in the $3,000,000 range to work in Indy.  With this bankroll we can do a whole bunch of work.  I have been working with banks and have tentative meetings setup for first week in March in Indy.  I am also looking for private investors.  I am meeting with a couple of guys in Indy with private money as well. So, long-winded answer is that I'm making a good bank book/presentation that will work for both?  Possibly modify as needed for institution vs. private money?   I do appreciate your initial input to get me rolling, thinking and taking some more action to get something solid together before the end of the month.

Jim

Hello,

I am in the process of putting together a good bank book.  The guy from Memphis Invest did a great video on this subject.  I did a mini-version of a bank book for a small local bank in AZ and it was well received.  Now that I'm going after "BIG BOY" money I realize that I need to step up the quality of my bank book.  I'm calling it a bank book since it's a complete picture of us and our business along with a good overall sense of who we are.  My question is does anyone know or have a good resource for a template and or good example of all that it should include?  

Jim

George,

This is excellent advice.  I have a meeting with the city early next month so I'll put this on the agenda.  Ideally if the city will bill back if I buy the meters that would be a dream come true for me and one less thing that I need to worry about!  I would have never thought to ask this.  The city is excited of the plans to improve this ugly duck any way so this is a good opportunity for them to show how thankful they can be!

Jim

Chris,

Thanks for the detailed input.  Yes, I now see that we must be careful so we are not considered a utility.  I am just trying to recover the water expense and lower the usage.

Thanks for the input!

Jim