All Forum Posts by: David H.

@Thomas Guertin good points. I'm getting numbers like 75% LTV 30 year AM, 4.125%. Not bad except for the limits.

I'm not against complying with a rule, but sending in 15 leases for a loan backed by one property just seems like a big stack of papers for nothing.  I'm not sure how my raw land plays into a cash flow asset that's got a 25% equity cushion.

@Rusty Scott I've definitely thought about the LOC option. I've never needed the debt until about now, so I'm just now digging into the different options. I definitely like the idea of having quick access to buy a foreclosure without keeping all that cash in a checking account. That's basically what I've been doing this whole time. Inefficient, but the margins were so large on my deals that I could afford to have dry powder sitting under the mattress. I'm definitely going to start with a few calls to some brokers, and US Bank looks like it could be an option too.

@Toben B. Calling a broker!  What a great idea... sometimes the most obvious solutions are right under our noses.  I'll try that on Monday and see if he has ideas.

@Rusty Scott I'm looking to grow my business through acquiring more foreclosed homes and rehabbing.  I have cash for about 1 or 2 more of these foreclosures I've been snatching up, but after that, I'm tapped out without liquidating my retirement funds.  I need to start finding a new source of capital, and I'm at the point where I feel like debt is actually safer than having these things all cash.  But, I need a lender who's going to give me a good "deal."  I think I have two choices to accelerate growth: 1) cash out refi on my positive cash flow homes or 2) borrow money to acquire homes that have termite damage and missing air conditioners.  Both are proving to be harder than I thought when I first started with my first house.

@Brie Schmidt what's the best way to find a local REIA?

@Account Closed I called Capital One.  Their max was 4 homes.  How did your pre-approval work and what bank were you using? It seems like doing these cash out refis are sooo hard.  They want leases on ALL of my properties, two years tax returns.... geez.  All for a maximum of 4 properties?  I'm wondering what kind of bank I need to look for to get access to liquidity.

I called my mortgage loan officer yesterday to discuss lending options for my many properties in LA.  I'm looking to grow my business, and I wanted to borrow using my rental homes as collateral.  I have zero debt.

She said for the SFR properties, bank policy is limited to 4. She didn't do multi-family, but said I could potentially go to a commercial bank.

I know someone on BP has tried this before.  What's my best bet if I want efficient access to capital to acquire more foreclosed properties?  Should I just finance new acquisitions as purchase?  Or should I lever existing home that are unlevered and buy new homes with "cash."

David

Is it ironic to anyone that she ended the text message with a sentence fragment?  haha.