All Forum Posts by: CP Chou

@Robin Cornacchio the BP book by Matt Faircloth is fantastic for this topic!

@Renu Grover

@Renu Grover

Some thoughts for ya...

1. - seems there are a lot of new developments in downtown -- is Austin being overdeveloped? Vertical condos all day. Not going to CF
2. - in other words, is this a good time to get into the Austin market? Depends what, where, your goals. But yes! North/South ATX and the burbs for both SFH, MFH.
3. - what neighborhoods within or near austin are worth looking into? North Burbs
4. - any recommendations as to whether single home or multi home is preferred by those renting in austin? There's a strong market for both, more specific to area, property.

@Oliver Sparks Would advise to keep your potential liabilities per biz venture separate. If it's all pooled together your existing business and new assets all share the risk - definitely consult an attorney if you choose to pursue REI outside your core construction biz.

@Andrew Postell Thanks for all your posts, they are very helpful. I was wondering if you had insight on 1065 / Line 15 - do lenders add that amount back? From some convos, commercial lenders seem to add the interest amounts back from that line. I dont believe conventional lenders do? Of course that could swing DTI, DSCR, etc on qualifying.

@Aaron Gordy @Lexi Teifke We should recruit this thread to collectively checkout the Baby A's help wanted sign and to drink some margaritas while verifying it

Was just walking around the Texas State Capitol building yesterday. Yes, dont anyone forget that it's taller than the US Capitol!

2019 BP THREAD OF THE YEAR NOMINEE, award to be presented by @Brandon Turner at year end

May all your portfolios age like fine bourbon. Cheers!

I've also heard similar messaging from smaller banks when their thresholds are hit. If you think of it as them managing their own loan portfolio, it's all about managing their risk, not so much that they're having problems or they doubt you can pull off growth. They do this so they do not run into problems across their entire portfolio and waiting for you to season helps reduce their risks.

Are these commercial loans? There are probably a few more ways to get 85% LTV between conventional and other regional banks as well. Worst case you can always go with a more expensive loan option on a good deal now and bring them the refi later.

Might be a great time to mull over private capital too! (if you havent already)

It’d be a great time to introduce yourself to new lending relationships and develop those too. It sounds like maintaining a good relationship with this bank is to let things season. They of course love you and have proved it many times over already. I’ve found it helpful to diversify lending sources to find fits for various opportunities that show up. I’ve learned a ton about how different lenders offer their programs to meet their lending goals. Hopefully you’ll find the right blend of lenders to help you continue growing successfully.