All Forum Posts by: Haley Henderson

I have a few properties in my portfolio that I am needing to complete the Refinance part of the BRRRR. I have never done a Refi before, but I have learned through books, podcasts, etc that credit unions are the best place to build relationships for financing- which I completely agree. However, I have been on the hunt for local credit unions who complete cash out refinances, and all the ones I have talked with only offer home equity loans. As well as, do not lend to LLC's...

My question is- does anyone know of a credit union in the Galveston/Houston area that will work with investors and offer cash out refinances? If credit unions will not work with LLC's, how do you get around the DTI requirements with your personal finances on multiple properties?

Is DSCR refinances the best option if I can not find a local credit union/bank to work with me on these cash out refi's?

Thank you ahead of time!!

I would disagree with the assumptions that credit unions are the best partner for investors. They typically have order taker LO's without a lot of experience and they have generally are not going to have much product that is outside the box at all. They are not going to have DSCR options or LLC options or have any imagination on how to get a deal done that is not right down the middle. (for example no seasoning cash out options that make BRRRR work)

Thank you for all of that! Totally agree with it all and I wasn't making any assumptions. I was just looking for credit unions to compare the differences between what they could offer vs DSCR loans since I hadn't before. But you're totally right!! thank you again!

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Houston, Texas

Is DSCR refinances the best option if I can not find a local credit union/bank to work with me on these cash out refi's?

Thank you ahead of time!!

1 Vote

Houston, Texas

Hi Tanner!

I would love to be on your buyers list!

1 Vote

Houston, Texas

Should we just do an Umbrella Policy and not worry about the LLC?

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Houston, Texas

Hello!

I was wanting to see if anyone has run into this problem and see if there was any feedback or suggestions.

My fiancé and I are in the process of purchasing our first investment BRRR property and we are using a conventional loan through our local bank. The program that my fiancé got his pre-approval with our bank (I own our primary residence so we wanted to get a loan in his name) is designed and offered for the purchase of a primary residence. With that being said, we are not allowed to put the mortgage in under our LLC name, it has to be the home owner name for this particular program with our bank.

That being said, has anyone run into this and if so, how were you able to protect yourself through your LLC when you start renting your property? Is there a way we can still use our LLC even though the mortgage is his name and not the LLC?

I understand I need to contact an attorney or CPA, but just wanted to ask on here and see if anyone else had run into this.

Thank you.

1 Vote

Houston, Texas

Quote from @Karl McGarvey:

I have a few great lenders on the island if you need help. Also using a great agent experienced on the island esp with STR to help you negotiate may get the price down. Seller financing is only an option if they own the property outright.

Feel free to reach out if I can help! Love helping people invest on the island!

Hey Karl!

Do you mind sharing the lenders you recommend on the island? Would love to talk with them.

And absolutely! Really wanting to start building our portfolio on the island, much like yourself!

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Hello!

So I am new to the real estate investing community, but I came across an AMAZING STR opportunity for Air bnb in Galveston, TX (which is where I live) in a Facebook group. The house is for sale and the house is ready to go for rental and seller is selling with furniture and ready to go. I am REALLY wanting to get into the STR space, especially with air bnb. My question is, with this being the first property I would look at purchasing with my fiancé. I do not think we would be approved for a loan amount the listing price. So my question is, what would be the options/steps you would take to try and make this happen?

Reach out about seller financing, etc?

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Quote from @Karl McGarvey:

If you are an agent in a summer vacation area you can probably relate to the title of my post! Short Term Rental buying season, especially in Galveston Texas, is here!

Starting just after the new year buyers/investors come out of hiding to try to capitalize on their next investment so that they can have it ready by Spring Break, allowing them to make money almost immediately after purchase. With Airbnb and VRBO boosting your property for the first few weeks to "test" it, listing right before Spring Break is a GREAT chance to get your property boosted to the top of searches right away! Timing can be everything, and being able to take advantage of the Spring Break/April/May Weekends is a fantastic way to have your property boosted for the summer.

Yes, the market is still crazy, and will probably continue to be busy into the foreseeable future, but there are deals to be found/negotiated. My partner and I closed on an off market MF deal in Galveston in November, and in the last month I have had two clients close on their first STRs!

Even better, the City of Galveston recently signed a deal with Airbnb/VRBO billing our HOT tax straight to the guests, with no pass through to the owner, making us pay the city on the backside. This deal instantly gave every owner on Galveston a 9% increase in revenue (assuming rental rates stay the exact same, which mine are compared to my 2021 numbers thus far). This has made deals that were previously marginal, much much better.

A lot of interest in our great little market lately, especially after being named the National Association of Realtor's 2021 Best Place to Buy a Beach house, so I thought I would shoot a quick post with some knowledge to help the rest of you out in your search!

Hey Karl!

I also live in League City and my fiancé and I are really wanting to deep dive into the STR game in Galveston! I would love to connect with you about this because we are hoping to find something for summer time! ...obviously high hoping but we are wanting to make something happen.

Thanks!

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Quote from @Quinn Olivarez:

Quote from @Sean Bramble:

Hey everyone - I'm looking for my first STR property and am considering expanding my search to include multiple long distance markets since my home market is super slow right now (upstate NY). I have a question about if and when you actually travel to go see properties you're interested in ... seems like it would be a huge waste of time and money to travel cross-country to see a property before your offer is actually accepted

Question for those of you doing long-distance investing: do you wait to visit properties you're interested in until after your offer has been accepted? And then if something is majorly wrong find a way to get out of the deal during the inspection period? Any advice would be really helpful ... trying to widen my lead funnel as much as possible

In texas, you can cancel the contract for any reason during the option period, without explanation. I would wait to visit until after a contract is accepted, and block off enough time to see other prospective listings while visiting the property you’ve put under contract. A good realtor will get you the content you need to “see” any given deal before putting it under contract. Contact me if you’d like to talk about Galveston TX, which is a great coastal vacation rental market for long distance investors

Hey Quinn!

I am actually located in Galveston area and I am looking to start investing in the STR. Would love to connect with you!

1 Vote

All Forum Posts by: Haley Henderson

Haley Henderson has started 3 posts and replied 9 times.

Post: Credit Unions/Banks in Houston that will do Cash Out Refi's?

Post: Credit Unions/Banks in Houston that will do Cash Out Refi's?

Post: Subject to Investment (Houston)

Post: Personal Mortgage & needing LLC coverage

Post: Personal Mortgage & needing LLC coverage

Post: STR OPPORTUNITY, BUT NEED HELP WITH FINANCIAL OPTIONS

Post: STR OPPORTUNITY, BUT NEED HELP WITH FINANCIAL OPTIONS

Post: Short Term Rental Buying Season is Here!

Post: Question for long-distance STR investors ...