All Forum Posts by: David Siegel

@Harjeet Bhatti, @Doran Summers thanks for your replies. I may not have expressed my thoughts clearly.

What is the downside to refinancing a HML with conventional financing on a flip that may be on the market for a while?

From my perspective, my HML credits back 1% on the up-front points if he gets paid back within 90 days and I'll most definitely have a much better monthly payment.

I feel like I must be missing something because starting this process now would be an all around win. The downside would be the hit my credit score takes for holding a second conventional mortgage. Once paid off my credit would bounce back soon enough.

Any other down-side you can think of?

It seems like hard money lenders want their upfront points, but then they want their money back ASAP. They're not especially interested in you sticking around on their note.

This is apparent because their notes balloon in 6 months, typically. And one HML offers a credit on the points if you can pay back within 90 days.

So why wouldn't I attempt to refi any properties I purchased with HML funds to get a more favorable monthly payment and get them their money back ASAP? If I'm looking for a no cash back refi on something I'm trying to flip, what's the hard in just starting the refi process just as soon as the deal closes?

Would any mortgage professionals that know the ins and outs of Texas mortgage rules mind hearing the particulars of my situation outside of this forum? 

Thanks for the feedback!

Hello BP Community! I'm nearing the finish line on my first BRRR and everything is going really well! I'll post the exact numbers but my 4/2/2 with a PP of $95K and rehab costs of $23K will have rehab completed on 9/27, exactly 30 days after closing and I expect it to be rented within 2 weeks from that date.

I'm reaching out to banks local to the San Antonio area to find a portfolio lender. Because the property was purchased by my LLC I've been told conventional lending may not be an option. I'm open to exploring all possibilities. Creative cash out suggestions are more than welcome.

I'm currently looking into contacting First National Bank of Texas and they have a long list of Loan Officers. Rather than put "No Preference" I'm wondering if anyone here has had a good experience working with a loan officer from this bank.

@Brian Phelt, thanks as always for the the great advise and referrals

@Brent Coombs, I think you're right. Exploring all options though

@Jason Hirko, Thank you for clarifying that. I think I may have read that before but not so concisely worded so it finally connects, I understand the 6 month seasoning period. I thought it had more to do with proving a timeline of income generation but this makes sense.

Yes, please do make an introduction to the local bank. I've been looking to begin a relationship with a local bank for a long time but had a hard time finding the right one. Appreciate your help in making the connection!

I have a property in San Antonio, TX currently undergoing renovations to make it safe in preparation for a tenant. It seems like I chose a desirable area to live and around the time the reno should be done (week of Oct 2nd) I may expect to have a tenant that week or the week after.

This place was bought with hard money, 20% down. I'm paying cash for the rehab.

PP = $95K

Appraised @ $135K before rehab

Rehab = ~ $20K

ARV = ??? but we will see soon

I want to get out of my hard money loan ASAP. From what I've read here, going conventional is ideal. The only other mortgage I have is on my primary residence. The big complication is I have another flip project happening simultaneously with holding costs of ~$3400/mo. That prevented me from getting a HELOC on my primary residence so I imagine it will come into play here.

I'm looking for advice on next steps and timing. 

• Should I wait for my other project to sell before applying for conventional financing and just stick with HML terms for a while?
• If I should be pursuing conventional financing, where's the best place to start the conversation? 
• I've read that you can find mortgage professionals to assist you in applying for conventional loans with no seasoning period? Is that real? Where are these mortgage professionals? Please introduce me to them!

Thanks everyone for your responses. The answers on this forum have been incredibly useful and to the point. Much better than fiddling around on google (which I do every time in an attempt to not look like a complete newbie)

@Kim Meredith Hampton, @Tracy Streich, Thanks so much for your feedback!

Does anyone have good referrals for a property management company in San Antonio. I would be especially interested in a company that manages rentals in Converse, TX which is where my property is located.

Thanks for your replies!

Hello All,

I've spent 1.5 years reading forums, finally contributing for the first time!

About 1.5 years ago I was going through a rut and my wife recommended we go to Than Merrill's weekend seminar (can I get a two-clap from anyone who knows..) and I knew I had an interest in doing this. About a month later I bought my primary residence to go through the motions of buying real estate. I've spent an entire year remodeling the interior, every weekend, about 10 - 16 hours per weekend for an entire year! 

Now that is done and I want more! So my wife and I have our sights on buying rentals in San Antonio, TX. We may do a few flips but the big goal is to have 5 rentals before the end of this year, 25 rentals before the end of next year so I can focus all of my attention on real estate, then move on to multi-family units the year after. Then maybe some franchises. I've always wanted to own a Chik-fil-A which is hands down my favorite chicken sandwich.

I've been reaching out to people on bigger pockets through private messages and made some really great connections. I'm going to do some more of that because while trying to get my investing off the ground I am working hard, not smart and I know with the right direction from the right people I can work hard and smart and get closer to my goals.

My favorite learning materials have been Morris Invest youtube videos, as his strategy is exactly what I'm looking to achieve. Whenever I lose my focus I go back to his videos. And I bought J Scott's "The Book on Estimating Rehab Costs" which was absolutely worth 10x the investment. I'm going to buy his other book any day now. The way he writes is exceptionally understandable. 

I'm heading to San Antonio next week from the 17th - 20th. When I bought the tickets I was hoping I would have properties to look at or at least one thing under contract. That has proven difficult. I'd like to meet with people in the investing community while out there. 

In my spare time I like to play poker, exercise, go to the beach and just got into shooting guns and playing golf.

I look forward to meeting some good people here! 

- David