All Forum Posts by: Jeremy England

for anyone who's been following this, so I found a lender who will cash out finance the property.  Its a commercial loan.  This will increase the monthly payment however which decreases the cashflow of the loan.  The terms are 5 year balloon amoritized at 20 years at 6pct with 1/2 pct origination.  That would put my payment at 537.  add in insurance and taxes and there would be about 250 left if I got 80pct out.  If I got 75pct out there would be about 300 left after piti.  

Question for anyone who can answer. They say I can finance this property in my LLC but witha personal guarantee. This sounds good, however I'm thinking of 3 or 5 years from now. If it's in my LLC's name, then a mortgage on the property is out of the question I think right? Like a traditional refinance into a 30 year at a lower rate?

I'd like to hear anyone's thoughts on it.  Thanks

You need to talk witha  commercial lender and you will need to give a personal guarantee.  The loans will be in your business name, but you will be personally responsible for them in case of default.  I'm going through this process right now

Welcome Steve, I'm local to the market and can refer you to different resources should you need one.  Let me know

Speaking of loans thought I’d let everyone know that the bank that I had in mind for my cash out refi is no longer offering loans without seasoning periods to new customers. So I’m back to the drawing board with trying to find a bank to refinance with I’ll let everyone know when I figure out.

I may have to just pay off his personal loan with my own money and wait for the seasoning. It really throws a kink in the whole brrrr concept.  If I have to wait six months between every purchase and refinance the road passive wealth is a long one

 Easiest loan I’ve ever applied for. It was simple . they check your credit, your bank statements , youre funded

If only mortgage loans for this easy

is this your first deal? If so you’ll probably have to self fund it to prove to the people you are soliciting that you know what your doing

Borrow from the 401k imo.  It’s cheaper anyway

I think you should look more into the people you have a personal relationship with that know and trust you.  Start with how their money is secured, then talk about how much money they will earn.  

I can get 8 pct pretty easily these days in diversified mutual funds.  I think for a 50k loan you'll need to offer 10pct.  

Just my opinoin

 But is that not limited to what I paid for the property?

I bought this property at 62k and will have 17k in the rehab.  Its valued at 100-105

Anyone on bp know of any cashout refi lenders in florida that will waive seasoning?  I had a referral to a local bank here but they changed their policies on August 1.  No refi without seasoning UNLESS you are a current or established customer.  which I am not.  

So figured I would put it out there on bp.  Got a house I bought 2 weeks ago and I'm nearly done with the rehab.  

Well, I’m not positive. But I would think the personal loan is no different than any other debt to be consolidated using equity

We’ll find out soon because I was just referred to a local lender by a bp member yesterday that will do. 75% ltv w no seasoning.  

Im prepared for alternatives should the personal loan prevent me from refi due to credit limitation.  I have the funds in personal savings to pay off the loan.  I could also borrow 50k from my 401k for a short period

But I’m hoping I can just take care of it in one step with the refi