All Forum Posts by: Bill Sargeson

What is interesting to me is, two years ago when I started seriously investing in RE the bank would loan up 50% of tax value with 10% down. So a property with a tax value of $80k the bank would loan up to $40k. They stopped doing this though about 4 months ago and went to their in house appraisals. Some would say there are very few properties to buy at half of tax value but I never had a problem finding them especially with foreclosures.

$450 rent, 2 Bed 1 Bath Brick ranch. Built in 1955. Paid $18k for it. Positive cash flow of $225. The cash flow is on the lower end compared to my others but I only put $2k down on the property and it had a tenant in place so it was quick deal with decent cash flow.

Thanks Jon!

Yes I have a very similar deal here with a local bank. They will loan 85% of their "in house appraisal" which is not a full blown appraisal. They will also finance repairs but then they require a full appraisal. I have been with them for almost two years now and purchasing property is so simple and quick. I fill out a financial statement once per year, they run a credit check and voila I am ready to make offers for the next 12 months. I have been able to close as quickly as 2 weeks, 4 weeks max! I have 8 loans with them, once I get to 10 then they will loan 80%. 10 year notes with a 5 year balloon, after 5 years they renew the loan for another 5 years.