All Forum Posts by: Ivan Cole

@Andrew Postell thanks for the reply! I can’t thank bigger pockets and you (everyone) who helps out new real estate investors on crucial steps during the process of investing.

I’m trying to understand step 3. I like to think I pick up on material quickly but I don’t understand how the llc would “finance” or loan the money for the property? This would require the llc to have sufficient amount of funds, right? Also, why or how would the lender refinance if the property still hasn’t had the proper seasoning period? I would’ve sent you a pm but I think this is great material for whoever may be in a similar situation. Thanks!

@Jason Smith I've done a lot of research and i have not come across the idea of selling it to my self or to the company. I love the idea. I own the property free and clear. The property is in Indiana. My frustration is that I've read and read where people say just keep calling banks but I have only come across one that would work with me as a portfolio. Terrible terms, 5.5% @ 15 year fixed rate and 65% LTV. The commercial side is advantageous because they will refinance (5/1) 75% of the appraised value at 4.5-5% amortized over 20 years. This is the best route for now. I can buy properties in cash and they will refi into the LLC.

I appreciate everyone’s input! I love this whole process of learning about real estate.

@Stephanie P. Thanks for the advice. I’ve actually called around to 10-12 banks at this point. The best I’ve found is a 5/1 @ 4.5-5% with 20 year amortization and no pre-payment penalties. Therefore I could refi I to a conventional mortgage when the timing is right. Believe me, I’d love to have the 30 year fixed but is it worth it to wait 3 1/2 months to do so? In my mind, I see the commercial mortgage giving me the option to turn and burn 2 to 3 properties in the amount of time I’d waste waiting on the seasoning period. I just haven’t had any luck on someone going to bat with me otherwise.

@Jaysen Medhurst appreciate the input!

@Jaysen Medhurst I’ve been back and forth on just waiting or pulling the trigger. My cash flow will still be positive with everything considered, but I would be able to turn and burn onto the next property if we go with the 5/1. It’s just hard to scale if we have to wait six months on the seasoning period for every deal.

My wife and I used cash to buy our first property. We have completed the rehab and have the property leased for 3 years at 1,100/month. House is worth $100,000 and we have $49,000 invested.

I have called 7 to 8 banks to discuss refinancing and pulling our capital out but no one will work with us inside the seasoning period of 6 months. However, we could go with a commercial loan program but the terms are not great. 70% LTV with 5/1 Arm @ 5.5% amortized over 20 years with an early payment penalty and ballon payment at 5 years. We could still cash flow with this deal but I just hate to go forward and shrink our cash flow with the possibility of a ballon payment after the 5 years. Is this common or is there another route to take with financing!? If we could get this refinanced we would already be onto the next property! Am I being too picky or should we go with it? Any advice would be greatly appreciated! Thanks

@Greg Dickerson thanks for the reply. I’ve made a list of banks to approach but I’m thinking I need to wait until I have a lease signed before asking for a refinance. Would it be more advantageous for them if I have leases signed or should I speak with them before I get tenants in the rentals?

My wife and I are new to real estate investing but have some background in dealing with mortgages. We recently bought our first two properties and are almost done with the remodels. My question is what is the best option to pull out our cash? I don't want to wait the seasoning period and I'm weary about doing an ARM mortgage without any experience. I want to try and scale faster than buying one or two houses every six months waiting on the seasoning periods. Any advice would be great! Thank you