All Forum Posts by: Jarred Sleeth

@Rex King

Are you holding these in an entity? I have been working with a lender to refinance our current deals after rehabbing (typical BRRR strategy) but I have been seeing much higher rates which I expected was due to the commercial aspect of the loan products. Those rates are really solid for non-conventional if that's the case. Can you go into any more detail?

Thanks!

@Elizabeth Colegrove

That's pretty fantastic, can you FWD me some info in a PM? I'd certainly be interested in speaking to her.  Everyone I talked to said 4 is the limit, and it sounds like they may just be a few weeks behind the times! Thanks!

Hey BP,

I recently made some major upgrades to a property of mine and wanted to do a cash out refinance on the property. It's in a conventional 30 year at 5.5% with about 53k on the clock. I figured I could cash out about 15k on this property and move it into a new deal, as well as lowering that 5.5% rate.  Now, after some research I learn that after 4 mortgages you cannot do a cash out refi with a 30 year am, and I would need to come up with a different plan. Are ARMs my only option here?  I suppose I could get a portfolio or commercial loan on it but this might kill my cash flow with a shorter term and higher rate.

Has anyone been in this position before? What did you do?

Thanks for the advice!

Jarred

I think I can speak at least for a few of us here on BP and say that a poor performing stock market only helps us reenforce our commitment to investing in real estate. Buying tangible assets for cash flow in the housing market which will always have a demand is certainly not a bad way to invest your money. This is not to say that the stock market is a bad place to invest, either, but you will certainly have a bit more control in real estate.  To this end I prefer the control.

In reality, it is something that takes time. And with that time, you will be lowering your DTI with each purchase if you're buying correctly. If you buy with cash flow in mind, each property will have enough to cover the debt and make an income on top of that. Now, with conventional lending standards it gets very tough to purchase a lot of properties, and over a certain amount (likely 10) it becomes impossible. Many people will gravitate towards using different types of lenders like commercial and portfolio lenders to continue doing deals. These types of lenders do not base their requirements on DTI but rather the performance of the property.

Can we expect a thread over in the Success Stories section with some of the juicy details?

@Cornelius Charles, very exciting. Congrats!

I have yet to attend any local REIA that didn't have some sort of pitch involved. It's a pretty big turnoff.

@Queen Sheba Owusu-Hassan, that's funny. These are probably two areas I would definitely not recommend to invest in due to crime and reputation. Especially for an out of state Investor.

I agree with everything else said though, its a good investing market with many opportunities. Not much on the multifamily side of things, though. 

I'm not sure I'm following your question. Are you talking about what the banks views will be?

12 months in generally standard but there are lenders that will do it at 6 also. 

I tend to fall in the camp that @Joe Villeneuve is in. Use the cash to buy with enough equity to refi out and recycle the money.