All Forum Posts by: Franklin Romine

I'm not sure where you will find a line of credit product you can cross collaterlize on 3 properties. You might be better off to refinance one or a couple of the properties to pull out equity. I have a couple lines of credit but they are first position lien. My rates are 70% LTV 7% interest. If you have good credit you might beable to get a unsecured line of credit. Which I have done and keep for emergency or opportunity.

0 Votes

Use your W2 as leverage to buy properties, chop alot of wood and before you know you won't need a job.

1 Vote

Originally posted by @Brant Richardson:

@Mike Martin I have one in cash now. How would I go about "proving" there are no liens? Do I need to do anything other than show bank statements going back X months which shows the cash was there, a wire transfer and my account down the purchase price?

My plan was to max out my ability to do cash out refinances, then max out Freddie/Fannie loans, and only then start moving into private loans.

No liens with show on the title search when the lender is about to close on your refiance. I enjoy working with protfolio lenders. They are much easier to deal with once you establish a relationship. You just have to find the right fit.

0 Votes

Originally posted by @Jason Nevaril:

Originally posted by @Michael X.:

Greg P.
I looked at a laundry mat about a year or so ago. I really liked the property and would have purchased if I had not move. What I really liked is that I was buying the business and the PROPERTY at the same time and it included a smaller separate building on the property that had a hair salon and auto repair shop renting. I would have been getting income from two rentals while running the laundry. This was very appealing. I asked for 3 years of utilities so that I could see trends in how much they costed and whether I could save money. I was going to keep the current employees that they recommended and get replacements for the others. I wouldn't have changed much for the first few months.

If you want PM me your email and I'll send you the excel stuff I did. Nothing that great but it will give you an idea of what I was looking at and possibly a template for future due diligence.

I know that a lot of the posters above caution the purchase of a coin op laundry but they can, and many times are, sound investments.

Good luck.

Hello- Just came across this post. Do you still have those documents? I would love to take a look at them. I am currently looking to possibly invest in a laundromat.

Thank you in advance.

-Jason

Jason pm me with your email and I will send you my tpd worksheet. I was very close to closing on a laundry. 3 months of due diligence disappeared when the appraisal came back way low. It was going to be financed by sba.

2 Votes

pull equity out and buy more. Once you get a ball rolling of equity, debt and cash flow you can have properties in various life cycles. My point is stay a vie and don't close your eyes. Always be looking for opportunities to move equity into.

1 Vote

I would talk directly to the owner. Develop a relationship and get the scope. However depending on your level of experience you might want to use an agent. My thought is no sense on scaring off the owner or losing a potential deal with a amateur agent.

0 Votes

The use of entities goes back to the amount of equity and cashflow you have at risk. If you moved out of your primary residence that had $200K in equity and negative cashflow would you setup an LLC?. If you owned 10 small houses with a combined equity of 200K and $2,000 per month in cashflow would you setup an LLC?

The cost to operate the entity...ca secretary of state and the accountant... the money would be better spent on see's candy for your insurance agent and umbrella policies. More LLC's makes your life more complicated.

1 Vote

One rule might be the amout of equity you want in one LLC or possibly the risk. I know investors that have 100's of units under a personal name and carry good insurance. I'm sticking with one LLC untill I find another business venture or introduce a partner for a specific property.

1 Vote

If it fits in your potfolio and your significant other doesn't care I would go for it.

0 Votes

Cash on cash return is what I use...

Monthly Cashflow x 12 / Dowpayment(or total cash in the deal) = Cash on Cash return.

I like to see any where from 15% to 25%. I have a few that are inifinite because I did a cash out refinance and have no money in the deal.

2 Votes

All Forum Posts by: Franklin Romine

Franklin Romine has started 15 posts and replied 1795 times.

Post: Using Equity Line of Credit for more REI?

Post: 7 years to 7 figure wealth

Post: Can I get more loans if some are Freddie and some are Fannie

Post: Coin Operated Laundry or Car Wash? Question please.

Post: Do you buy and hold or sell on top?

Post: How to approach For Sale By Owner when I have a realtor

Post: What is a good rule to decide if I should form a new entity for a new property purchase?

Post: What is a good rule to decide if I should form a new entity for a new property purchase?

Post: Seller financing on this property-worth looking into further?

Post: ROI versus cash on cash