All Forum Posts by: Jieh Larson

One more question: Should I go ahead and do an appraisal now to bring to the banks or do they require an appraiser of their choice? 

Hi everybody! I'm looking for recommendations in the Houston area for banks/credit unions for a cash out refi. 

Two weeks ago I closed on a duplex and paid cash using funds I borrowed from whole life policies. Now I'm starting my search for banks to refi and free up that capital. Any and all suggestions are appreciated. 

A bit of background:

• The duplex was purchased under my LLC, I've heard that can cause difficulties getting a loan but I want to be protected from a liability standpoint
• I just closed on this place, are seasoning requirements set in stone or are the smaller credit unions more flexible
• Since I've had it less than a month I don't have much of a financial history for this property in my name but I do have the P&L statements from the last few years...figure that's better than nothing. 
• Ideally I'd like to start a good relationship with a small bank to provide for my funding needs. My plan is long term buy and hold so I'm happy to let them sit on a pile of loans and collect while I build my inventory. 

Thoughts, comments, ridicule...let me have it.  

I haven't done any renovations but I know National Real Estate Insurance Group can provide coverage for it. I use them and they've got competitive prices. 

http://nreig.com/ 

Having zero money saved indicates to me poor lifestyle choices. I've found the Mr. Money Mustache blog helpful in identifying waste spending in your daily life:

http://www.mrmoneymustache.com/

Zero money down investing is possible but having money in the bank and living well below your income level makes things worlds easier. 

@Dan Richter

A 1 percent difference in loan rate will eat into your profits but you're paying for that safety buffer. If you want to shoulder that risk yourself for $900 a year difference in equity (not liquid cash) that's your call. Sounds like @Robert T. learned that the hard way, it'd be wise to heed his advise. 

Personally a 15 year loan wouldn't work for me in your scenario. I would look at that set up as 4.2% COC return on the 30 yr loan and -5.46% COC return on the 15 year loan. 

The 15 year loan is a lower rate because it shifts risk onto the borrower. Think through some scenarios such as major repairs, loss of job, market crash, extended vacancy...etc and figure out how you would mitigate each risk before you make your decision. 

Might want to re-post this under the Private Lending & Mortgage or the Creative Real Estate Financing forums. Sounds like a question for those areas instead of the DYI forum. 

https://www.biggerpockets.com/forums/49-private-co...

https://www.biggerpockets.com/forums/50-creative-r...

@Derrick Thomas

Going to attempt to make a helpful post.

https://www.marketplace.org/2017/04/20/business/ba...

This article mentions OneUnited Bank and Citizen's Trust Bank, give them a try if you haven't already. Getting funding will always be a challenge. Best of luck to you. 

Lunch breaks, nights and weekends you can find time to work on acquiring properties. Find a good property manager for your area and a good agent that'll bring you deals. I was where you are a few years ago and will be up to 4 doors rented come next Friday. Steadily growing while still working my 40+/week job and taking care of my family.  

There will be busy times that seem to come along at the most inopportune times but outsourcing will allow you to focus the small amount of time you have available to building the systems and acquiring more properties. 

I've found it helpful to share evaluations with my realtor. I still consider myself fairly new at this so it's been good to get a professional's opinion on some of my assumptions. BiggerPockets gave me a great starting point for the values but local costs can vary quite a bit off of what people are seeing nationally. 

Proof of funds that the management can verify will be required. I'd show both bank accounts and highlight the transfers to your personal account. You can get something official from the bank instead of printing it out and have someone there sign it with contact information.  

I wouldn't be dishonest with them.