All Forum Posts by: Will Spruill

We've been having pretty bad luck with our management company in Indianapolis. They are poor with communications and we're having very low quality tenants with turnoverbeing an issue.

Does anyone have a good property management company in the area?

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I've purchased two duplex units thru Norada in the Indianapolis market. I'm only 3 1/2 months in and will have to be using the 1 year rent guarantee; we'll see how it goes. Marco Santarelli has be great with email response. I'll know in a few weeks after the eviction is over with and the total bill comes in with lost rent and legal fees.

Not fun going thru an eviction this early in the process, but it comes with the territory I guess.

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The agents at Royal United have been great to deal with. The best part is they're located in Indianapolis; which is where my properties are located.

They already have me pre-qualified and if all goes well, this should close in a few weeks. It seems as if they have a pretty good knowledge of small time real estate investors like me and have the products available to lend.

Thanks again to David for finding this for me.

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Originally posted by David Beard:

Will SpruillIn my experience in my markets, local banks do not want to make loans to borrowers that live outside of the market area.

If you paid cash within the last six months, you most definitely can do a cash-out refinance using Fannie Mae's Delayed Financing Exception, provided that you locate a lender that will do it. I would call the lenders that handle Fannie Mae Homepath loans, listed by state at http://www.homepath.com/financing-lenders.html. T.hese lenders tend to be more investor-friendly and follow Fannie's underwriting guidelines more directly

Specify that you're looking for cash-out refinancing under Fannie's Delayed Financing Exception. Point them to page 189 at this link if the LO is unfamiliar, which is often the case. You may need to ask the LO to check with their supervisor or underwriting.

https://www.fanniemae.com/content/guide/sel040913.pdf

I quickly found from googling that Royal United Mortgage does them, and they seem to lend across the country:

https://www.royalunitedmortgage.com/blog/2012/01/friday/cash-out/cash-out-refinance-available-sooner-under-delayed-financing-rule

Others on BP have reported having success getting this done. Let us know what you turn up.

Wow, thanks for this great information David. Ill get on it ASAP.

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Originally posted by Aaron Norris:

Hi Will, have you tried a local credit union or bank? Sometimes they are more flexible and have programs aimed at their community. Lot's of banks have their own overlays so it ranges from 6-12 months. I just had the same issue and had to wait 6 months before refi.

I've tried a couple local banks, they back out when I tell them the property is out of state.

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I still don't have a good answer to this. The property closed on 5-17-13 and I have the title free and clear. Its a rental out of state. Somebody has to have been in this situation before? Are there any conventional or straight forward loan options available?

I keep getting request for hard money; no I don't need a hard money loan. I'm just looking to get some (50-60%) equity capital back out to re-invest.

The closest answer I've been able to get is you need to own the property for 12 months to do a cash out refinance. There has to be a better option than this....right?

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Originally posted by Elizabeth Colegrove:

I personally have not been able to find a institution that will lend 100%. Every institution I have worked with wants at least 20%. PLUS you still have to have top credit scores and debt to equity numbers. This has been my experience in the 4 states that I have worked in.

Sorry to cause any confusion but I have 100% equity (own free and clear title). I'm only looking to get back 70-80%.

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Originally posted by Kyle J.:

My properties were in my state, though the lender I ultimately went with was out of state. I still think if you call around you will find lenders that will do this. Don't give up just because US Bank couldn't/wouldn't do it. For all we know, you might have just been dealing with someone there who didn't know what they were doing.

Thanks for the advice; I'll be on the phone tomorrow.

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Originally posted by Kyle J.:

Being a rental shouldn't be a problem, though I've never dealt with US Bank before. I have done what you are looking to do (take out a conventional mortgage on a free and clear property), and when I called around to different lenders I didn't find one single lender who wouldn't do it. They all said they'd do it. Their rates/terms varied of course, with the biggest variable being how many financed properties each one would allow you to have.

I'd suggest just calling around to different lenders until you find one who will do it with a rate/term your comfortable with.

Its seems the hang-up is that these are both duplex rentals and out of state? Did you have this with your properties as well?

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Originally posted by Kyle J.:

Why wouldn't US Bank do it? Seems like a pretty simple loan, but maybe there's some detail(s) missing.

My initial loan request was for a conventional home equity loan; this was denied due to it being a rental. I've been lost in email world with them for the past month getting nowhere. They just keep saying, we'll check on something else.

This should be a no brain loan from what I see. I have great credit, 100% equity, and no debit.

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All Forum Posts by: Will Spruill

Will Spruill has started 12 posts and replied 67 times.

Post: Looking for property management in Indianapolis

Post: Turnkey multifamily investing

Post: Lending Questions

Post: Lending Questions

Post: Lending Questions

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Post: Lending Questions

Post: Lending Questions

Post: Lending Questions

Post: Lending Questions