All Forum Posts by: Chris Reynolds

Basically as the title says; I own 5 houses in cash with a value of between $70,000-$120,000 (I also own 8 investment properties with a mortgage, as well as a primary residence all in Ohio). I am looking to take out a loan on all of them. Ideally it would be a fixed rate long term loan. I have a business LLC with an EIN, so I am fine with a commercial loan.

The reason I own them in cash is because I am now primarily going after 4-unit buildings as opposed to duplexes. I have 9 mortgages already, and I am finding that I am capped at most places I look at 10 residential personal mortgages. I understand I can take more loans out with a commercial loan, but the rates are not as good, and the major issue is that I can not lock them in with a 30 year fixed rate when the rates are rock bottom right now, and (if you believe the FED) they will be going up early 2022. 

Any info on how to package those loans together, or be approved for more than 10 personal loans that qualify for a 30 year fixed rate I would appreciate it. 

Also- 800 credit score, not maxed out with DTI ratio, have a W2 job that I am able to qualify for additional loans, it is simply the fact I ran into the 10 personal loan issue.

Thank you!!!

Looking for some advice and introductions to lenders,

I have a property paid in cash, with no loan that is worth $70,000. I am having trouble finding a lender who will work with me to do a cash out refinance to complete the BRRR method. The reason I am running into trouble is because on an 80/20 cash out the loan amount is only $56,000 and I can not find a lender willing to give me a loan on my rental property for the small loan amount of $56k. I am looking at buying another property cash for 65k putting 12k into it and having it appraise for around $80k in hopes of creating a portfolio loan, if that is even a possibility at this point. (both properties cash flow $1,300/month so they are money machines)

My other option (not ideal) is to put 20% down come out of pocket about $15k, dump $10k into rehab and be $25k into a house that will appraise at for $80k. Problem with that is I would have to have to take out an original conventional loan to start, then right away refinance and get double hit with the lenders fees.

I know I will run into the same issue as before where the money is essentially locked into equity because of the small loan amounts if I move forward and purchase this now house for $65k. 

Does anyone know a lender who does small loan amounts on rental properties at a reasonable rate? I am also extremely interested in Portfolio loans, but I have zero contacts dealing with those types of loans.

Finally, I have an 'excellent' credit score, no debt at all besides 5 other rentals at 75/25 LTV (all cash flow positive) and a job that I claim over 100,000 in taxes, and have three years of consistent tax returns showing that. Finally, single and no kids.

I know a lot of people are much smarter than me when it comes to financing deals, and I am asking you to give me some real options of how to grow my portfolio while still leveraging my cash, and not getting eaten alive by lending costs. 

Thank you everyone for the advice it means more than you know. 

A million thanks,
Chris

Hi,

I just started selling off my rentals, and in doing so I have to employ a team of workers to fix up the houses, nothing crazy, but people are working on ladders and occasionally using saws. 

My question is what type of insurance do you have to protect yourself if an hourly worker is hurt on the job? I have talked to my insurance agent, and there are quite a bit of different options. I have a crew of 4 guys working, that are being paid hourly, and I would like to hear peoples thoughts on the types of insurance they have, or recommend, and also how did you structure your workers (1099 vs employee) everything I read says it is very difficult for a 1099 employee to hold up in court if they work normal hours, and use your tools.

All information is appreciated!

Thank you!

I am looking to find a tax lawyer in Cleveland Ohio, or hear some ideas how other flippers limit their tax bills.

Thanks in advance!

Thank you everyone for the update, I was able to have the sheriff throw him out of the house after he caused extensive damaged to the property, fixed it back up, and re rented it out. 

I took him to court, he filed a $25,000 countersuit against me, which was insane to put it nicely. I won in court, but less than I should have because of his insane lies (all backed up with no proof) so it basically came to the judge trying to be fair and meet in the middle. After I was awarded a settlement, I tried to collect and the next day he filed and appeal.

There has been three continuances filed by him on the appeal already, and he missed the last court date, but having friends in the legal department must be nice so the new judge is reviewing all the original transcripts from the original case and will come back with a decision. I am not worried about losing the case since he has no leg to stand on, but once this is done my lawyer assured me that he will simply file another appeal since his law practice is not doing well (imagine that with the caliber of this person) and has all the free time in the world.

Basically, the house is safe and cash positive, for all of you saying you can't count on the house being occupied, of course and I had a reserve, but the six months of no rent and about $5,000 in repairs made it for a headache for sure. I will be in this battle for the foreseeable future, and I am not the biggest fan of the legal system anymore after I find out what anyone with a bit of money, or a law license can do to a regular citizen.

Thanks to everyone for their insight!

Hi,

I am going to purchase a 23 unit apartment building. I have the downpayment, but because I work for myself and write off quite a bit, I can not secure a bank loan. I have an investor who wants to put zero money down, but is willing to cosign the loan in order for my to qualify in the banks eyes. The property is $600,000 with $150,000 needed to make improvements from day one in order to raise the rent, and have it fully occupied (78% occupancy now) 

My question is what is a fair deal to give someone who is willing to cosign on this deal? I feel like we are buying at a good, not quite great price, but very good, and will be putting down 25% of the $750,000. Even if the building looses 20% of its value, the cosigner would not be out any money even if we had to sell, since I would be putting the original 25% equity of the building down out of my pocket. 

Any advice on a fair offer for the co-borrower, or any insight would be greatly appreciated.

Thank you,

Chris

@brian G there has been some great advise and some not so great advice here. Let me start by saying he was current with rent until this month, at which time I gave him 30 days notice that the month to month tenancy was being ended, that will reach its 30 days On August 1st. I have filed the proper paperwork the day I found out he was deciding to stay (and was late with rent) 

To the people saying to plan for this... Again, I ask the question who here can support a house with a 15 year mortgage when you won't receive any rental income (was cash positive when tenant was paying) for 9 to 12 months, coupled with the fact that you have to come out of pocket for legal expenses? I've been around and evicted people and to eat 2 or 3 months is usually worst case senerio (considering you have good insurance and an umbrella policy for injury, or vandalism) this a month ago was unthinkable that this was even a possibility. 

As an update I called the police to ask about going in the house with dogs and they said if you let the dog out you can be sued, if you feed the dog and he becomes sick, you can be sued, if you go in the house (with proper notice) and the animal attacks you and you harm the animal...you guessed it you can be sued. The cops and animal control told me they would not help because they didn't want to open themselves up for any liability or lawsuits. (didn't tell them he was a lawyer)

I will be trying to sell the house (as I did a good job buying it, and have equity) while also pursuing him for eviction and whatever comes first is most likely what I will go with. I will be reporting him to the bar association. 

Thank you for all the comments and advice. I especially think the best advice is to have a waiver for a jury trial and will be having all new leases/renewals sign that piece of paper, as I would recommend to everyone.

Thank you everyone for the replies and input. I understand I cannot, and would not open myself up to anything illegal, as that is what he is banking on. As far as going into the house, it is because he has let a water issue in a bathroom that needs to be addressed and that's what he is stopping me from doing. As far as the dogs are concerned luckily it is a nice town with cops sitting around all day, so I hope to have the cops/animal control come when I am locked out and if the dogs become vicious then the police/animal control would be the one to react, not me (again lawyers...)

@Steve Babiak

 I told him that so I could humanize with him to find out exactly what he is after whether it be cash for keys, or a pride thing and I would make him feel like I was throwing myself at his mercy (he already knows the laws and how bad he can get me, or most any landlord for that matter) so opening myself up at this point is really a mute issue. How many of you can keep a rental for a year with no income while still paying insurance, taxes, water, sewer, and oh yeah lawyers fees above and beyond that all while taking time out of your day to go to court on and off again for months....

My plan is basically what I stated from the beginning is lawyer up and pray that he is in fact held to a higher standard and they will deny his request to go downtown where the courts are backlogged, while also deny his request for a Jury trial. 

As far as representing myself goes; you must be a lucky guy to have never been dragged into court as he would have a field day with motions and every trick in the book to buy him more time, and ultimately staying in the house longer than he would have to if I had a lawyer.

I do have multiple other properties that are cash positive, but with a mortage and expenses at $1,000/month plus legal fees starting at $5,000 (lowest estimate after three lawyers) I don't see that much of a choice. 

I tried offering him money to move. It seems to be a power thing for him, and reasonable sense has been thrown out the window. I explained to him I will loose the house if he does this, and I am willing to let him walk away (owes over $3,500) and give him his security deposit back in full when he is out. I even told him I would sign legal documents that I wouldn't sue for back rent. 

I am going to be reporting him to the Bar association, but even if they pull his license I get to screw him, but that doesn't stop him from screwing me... 

Yoochul,

He was upfront and honest about being a felon for a non violent white collar crime and he his law license had been reinstated, he was looking to move since he had just gotten a divorce, and the ex had taken the house. This house is in a very nice area with a great school system and that's why he wanted to move there. He is a great actor and seemed like a nice guy (don't they all) at the time.I figured if he had his license reinstated and was honest and upfront plus had cash and a good job why not give him a chance....