All Forum Posts by: James Klafehn

Exactly, that is why I have been trying so hard to get a HELOC for the past 2 years.

The previous poster was posting about old applications. I havent applied for a construction loan in years.

Also, I keep hearing that this is "outside of the box" from you guys. But look at any apartment complex, if it has multiple buildings the owners dont put each individual building on a separate parcel. No, its all one property. Granted they probably start with one huge loan and multiple investors but I havent found that yet. So I started with one. 

I dont see how my property is outside the box.

I'm sorry but that doesn't make any sense to me. Its an apartment community. Nothing different than what every other people own except I have a zero vacancy rate. It doesn't matter that there is a dog park and a passive solar duplex. It is 2 duplexes and anyone could manage it just like they do their own duplex. Its only special to the tenants who are in love with the idea. I dont think I asking for anything out of the ordinary from banks. They finance 2 and 4 unit houses all the time. My application for a HELOC on my owner occupied property is no different than if you had done it. My property just happens to have two houses on it. If anything they should be happy. If one burns down I still have another one haha.

I keep hearing people say, find a private lender. I have been trying to find one for 4 years now. If any of you know of a private lender who A. hasn't lent out all of their funds B. will do business in Central NY, let me know. Because so far Ive contacted 30+ people and haven't found anyone who can.

 I have Amy. I dont know if it would work though. I agree that its something that many people would support but I also think there would be a lot of people insulted because a "greedy landlord" was trying to grow his business.

I dont know. What do you guys think?

I am not a new investor. Ive been doing this for 15 years. DTI is manageable (would be completely fixed with a HELOC), credit history is nearly flawless but low score because of the CC debt, I have some reserves but that has never come up, and equity is plentiful. Banks just aren't lending.

 Good luck. I hope you dont end up on my road. Its not a fun drive.

 If you know of a private lender I am all ears.

 I haven't heard of any.

Ive tried looking for a private lender. About 2 years ago I sat down and contacted 20+ lenders on the list here on this site. I heard no from all of them. They were either fully lended or they didnt lend in my area.

I found a local real estate investor who was very interested in what I was doing. He liked my sustainable business plan and we both have electric vehicles. I thought we got along really well. The topic of politics and the fact that I am a registered Republican came up and he said "I dont do business with Republicans". He closed the binder that gave him and I spent an hour trying to save the deal, I didnt.

As for subdividing, I have thought about it, a lot. It would make obtaining funds easier, however by keeping the parcel one I will get a slight discount on property taxes. If I subdivide I would be assessed at full value for each subdivision. I also would prefer to eventually have one large loan on the entire parcel rather than 5 or 6 individual loans.

Thank you for the input but how are they out of the box? I just need a simple HELOC or home equity loan and all of my problems would be solved.

For the past 2 years I have been going in to a large local credit union to pay other mortgages I have through them. I went in person rather than mailing in a check or paying online so I could cultivate the relationship. They are lovely women. We always chat. We have a great relationship. I thought for sure after putting in the time, paying down my debt and dotting all my i's that it would finally come together. But no, still denied.

My original post was more about how do people overcome the negativity and the NO's.

"I have not failed. I've just found 10,000 ways that won't work." - Thomas A. Edison

I wish he was around so I could ask him how he found the strength to keep going.