All Forum Posts by: Chance Cooper

@Nick Thompson  she did not say anything about how long I had to prove it had been a rental property. The one rental property that I do have was listed on last years tax return but not the previous 2 tax returns before that. I had to provide my last 3 years tax returns. So I could only show 1 year of rental income off of it.

I honestly believe she had no issue giving me the loan because:

1.) The land that I put up for collateral was a paid off piece of commercial land that is listed at $170,000, and I know its worth 70k (the amount I asked for from her).

2.) My credit is around 750.

3.) I had a plan in place and told her what I was doing with the money. Once I told her that her eyes grew big, and said "You are so smart at your age!" I have rentals as well and thats what we do…So she understood my intent and knew it was a good investment for both parties.

4.) I do not have any other debt other than a rental home that cash flows right at $300 a month, my primary mortgage, and a truck payment. SO I guess my income to debt ratio was awesome. She told me midway through the process I was going to be good for the loan.

I am not sure what their policy is on giving loans outside of the state. This a local bank that is in my county. Here is my latest thread on how I got the loan and my plan once the money is in my account.

http://www.biggerpockets.com/forums/88/topics/164270-i-have-70k-what-now

@Nick Thompson I have heard also on here about the 4 mortgage rule…Doesn't apply at my bank at all….I was surprised. I went in just before Christmas and talked to my banker about refinancing a piece of land so  can buy more properties.

She told me that as long as I can show that my rental homes are making money and I have leases on them that is what they call "Seasoned Properties". She said I could get as many properties as I wanted as long as I was making money and had collateral which I do.

Its always better to go get it from the horses mouth…Every state or bank is different. 

@Elizabeth Colegrove yes that is exactly what I think I am going to do. I have a really good stable job and do not need cash flow off my rental properties. I am trying to build my retirement. I will be taking every penny off my rentals and reinvesting it into more or current rentals.

@David Moore where can I go or who can I talk to in order to get these deals on bank homes or hud homes?

@Rocky V. I don't want to sell the land just yet for a huge decrease. That land is in a prime location and ten years from now I think I could do something major with it. I just can't sell out just yet…My wife want do that either.

@Elizabeth Colegrove that is my exact plan as of now. I want make much money on the rentals immediately actually Ill be paying down that 70k loan. But once that loan is paid off thats when the fun begins. Ill begin making a lot more money and growing a lot faster. The 70k is just an immediate way for me to start growing my portfolio instead of sitting back and saving up 20k of my own money.

@David Moore yes you are correct. I will us 20k, 3 times and have 10k as reserves. Along with the $850 that is coming in off my first rental that is already paid off. Ill do this and never have to touch my personal income from my job. 

Do you have financing from the bank already approved? How are you funding it?

Ok guys here’s the scoop. My wife inherited a piece of commercial property about a year ago. It is raw land and I currently have it listed, it is worth right at $170,000 based off my realtor and it’s listed for that. I already own 1 rental property that cash flows $300 a month and should be paid off by June of 2015. It will then cash flow $850. I know a lot of you don’t believe in paying off rentals, but I want at least one paid off so that if another goes unrented in the future I have money to help me with it. Just my preference.

My wife and I wanted to grow our rental portfolio so we got a little creative with the raw commercial land. We went down to our local bank and asked for a loan on the land. After giving the banker everything she asked for she called us the next day and said we were easily approved, we asked for $70,000.

My wife and I have come up with a couple of different scenarios but would like your thoughts and guidance. The loan is for 10 years at 6% payment of $777 a month.

My thoughts was to pull 20k from the 70k and use it as down payments on 3 more rentals until I own 3 more which means I would only have 10k left to play with. Each would cash flow for $300 a month and Id have 10k to use in case of an emergency.

I also considered just paying cash for another 70k home but then Id have all my marbles in that one home….

Not sure which way to go next but I do know were in good position right now, I think... The reason we took the loan out on the land is because I figured I could make something happen with the money rather than just looking at the land that is not helping me at all. Now I can maneuver a little bit with the cash.

So lets recap…

I have one rental that cash flows for $300 a month, it will be paid off in June of 2015 then it will cash flow for $850 a month.

I am approved for a 70k loan at 6% payments of 777 a month for 10 years. The money is on its way, approximately 30-45 days…

What would be your next move?

Where I live (Fort Bragg NC) TLC Car Wash is killing it on the main drag, Skibo Rd. Every time you ride by there is at least 10 cars out there, and more trying to get into the parking lot. Its like an assembly line and in a city like Fort Bragg where there really is no recession because its Soldiers here its probably a great business. Soldiers love their cars, I pay TLC $60 a month through auto draft for unlimited washes for my truck and my wifes car. You can't beat it, a $1.00 a day for each car, thats a no brainer for me...

Guys this is awesome. I started so late in the game (26 years old) I wish I knew what I know now at 15…@Paul Timmins that is an awesome deal about the laptop, never crossed my mind! I think I am going to do that. I can delegate simple stuff to him and even teach him Microsoft Excel at an early age.

I am glad I put this out there…lol

My son is 10 years old and the president at his school. He is very eager to learn about anything so today I am going to give him a run down on our rental property we currently have and my plan for the next 10 years.

I am already grooming my predecessor...Have you started teaching your kids the business? If so age, and what are you covering?