All Forum Posts by: Chesley White

Hey Adam. I'm in Greenville as well. I would recommend Scott Timmons with Crescom Bank. He's great to work with for a re-fi. Crescom in Greenville/Greer used to be Greer State Bank so they have a smaller bank mentality. 

Chesley

Thanks Jason and Mike. I appreciate your input. Jason I will give you a call to talk more. 

Does anyone have any recommendations for investor friendly brokerages to hang a real estate license with in the Upstate? I'm in Greenville, SC. For backround, to date I've done about 8 flips and currently have 5 rentals. I'm looking to get my license to gain access to the MLS and also provide some additional side income either in referrals or when I buy and sell. I won't be buying and selling like a traditional agent so I was looking for one that might have a little less fees than a normal brokerage would. Any recommendations would be appreciated. Thanks!

@Jason Dillard 

Care to share any of your reputable wholesalers? I've used one so far that I've liked but I'm looking to make some additional contacts.

Hey Junior,

I'm not seeing the 2% often in this market just based on what we've looked at - most of ours are falling a little over 1%. Still great deals and cash flows just fine so not a problem at all for us being less than 2%.

We do have one commercial rental property that is above 2%, but I wouldn't say that is common.

Have you looked at the other comps for "like" properties (duplexes) in the area? Is the financing going through a bank? I'm guessing if so the appraisal came back at a value that was satisfactory? I know you're primarily looking at this for cash flow right now, but knowing the value would be helpful to give you an idea of an exit strategy if necessary.

@John Moore I did my research, however I just did the wrong type of research apparently. I didn't realize at the time that we bought that you didn't use SFH as comps. I was just thinking residential was residential and they would relate, and the other residential in that neighborhood looked great. So lesson learned there.. @Jon Holdman Not a lot of cash tied up, but it was our operating cash on a project per project basis. So with that being tied up we have to get creative to find funds to move on to the next project.

We'll get the actual appraisal report from the bank tomorrow so we'll know a little bit more and see what other options we might have but yeah it sounds like if nothing else we should at least take what cash we can get and move on. At least it'll be a good investment for us long term with the cash flow we just have to get it situated right.

Thank you all for the advice!

So myself and my business partner have run into a situation where we need some advice. We bought a duplex in August of last year in Spartanburg, SC. It's near downtown in a great neighborhood where it's mostly single family homes which are valued around 170k. We purchased the duplex for 77k and put 20k into fixing it up because we planned on holding this property for a while and we wanted it as maintenance free as possible. So we're in for around 97k.

We got our renters in January of this year after fixing it up and it is bringing in $1400/month total. We are now looking to do a cash out re-fi to pull out our cash and move forward purchasing other properties. The first bank we met with wanted us to put the duplex into our personal names instead of the business name so that we could do a residential loan instead of a commercial. They didn't want to do a commercial loan for a duplex basically. So we left that bank and found another who is on board with this type of investment. They said they will do a loan at 80% of the value, 5 year loan w/ a 15 year AM, around 6 % interest. So they ordered an appraisal and it came back at $80k. I was shocked. I'm guessing they compared that duplex with other duplexes in the area because of the type and I'm guessing there aren't that many of them to draw from to increase the value. It's just crazy because if you look at the neighborhood and desirability there's definitely value there. The house right behind it that you can see from the backyard is a McMansion worth probably half a million easily.

Taxable value is around 100k. Houses on that same street are in the 170s, and we purchased it and self-appreciated it to the high 90s, but we're getting a value of 80. Talk about a let down.

We can always sell it and probably make a good profit doing that, but I would rather keep it because it's producing such good income right now compared to the estimated debt service that we would be repaying if we could get a loan.

My question is does anybody else have any other ideas for pulling our cash out and getting as much as possible so that we can move on to other projects?

I am hesitant now of appraisals because they seem to really dictate everything and this one seems so subjective.

We are literally dealing with this right now too. Bought a duplex and rehabbed it and it's now producing great monthly income but we're ready to move on to another project and want our cash out. The lenders that we've talked to wanted us to transfer into our personal names to do the cash out re-fi under the residential side. Not too thrilled about this idea because the LLC will provide some additional protection if something was to happen. With tenants in a property I see this protection as a necessity. We're in the process of looking for a lender that will do a commercial loan for a duplex property. The interest rate will be a little bit higher and the term shorter, but I personally don't want the rental property in my name for liability protection reasons and the property still cash flows with those terms. Not sure how the personal umbrella plays into that.

Welcome Rick! I'm in Greenville, SC so just down the road from you. I've been investing with a business partner for a little over a year now while still having a full time job. We've done two flips, and now have 2 rental properties (1 commercial and 1 residential). I'd be happy to help in anyway should you need it. I'm excited for you to start your journey. Good luck!