All Forum Posts by: John Geldert

@Ishviyan D. thats a great question and one I do not have an exact answer for. I imagine they would use their own discretion, I ultimately can decide to use another bank if push came to shove...

@Kanwar Sodhi I used the majority of the refi funds to pay back my lenders principle of $100k and used the rental income to pay the interest of $8K. The remaining funds were used for the renovation on my current project.

Thanks,

Happy New Year!

@Donald S. those are some very good points and will definitely keep that in mind. My only issue with that is, I invest out of state and it would be difficult for me to get out there the day of appraisal. Difficult, not Impossible...

Thank you

@Brian Garrett yes thats correct the $5k was for the closing costs plus property taxes that were due. There was no sales commission as this was a refinance... Thank you!

@Vincent Pace thank you for the kind words.

I have used both private and hard money to fund my deals, obviously private money has more attractive terms as you are usually dealing with someone you have an established relationship with. Hard money has a few different caveats as I recently found out (the “hard” way, pun intended) I understood completely about the upfront points of 2-4% and the high rates of 10-12% but recently got involved with a HM lender that required I come up with the entire rehab budget as a “holdback” and these funds needed to be provided at closing. So please be aware of this if and when shopping for “hard money” lenders. Good luck!

@Joseph M. thank you.

I visted the property 3 times during renovation, because I have other deals out there It was easy for me to stop in and check on the progress. Also I structure my contracts for second payment to GC after certain phases of rehab are completed and make sure to get out there to verify.

@Shawn Ward thank you and best of luck with your Brrrr in 2018!

@Michael Noto thank you, I have spoken to a few different banks to see how this can be avoided and they basically explain to me that they use a third party vendor and have no control over the appraisal process. In your experience is there anything on our end we can do going into the refinance process to mitigate this issue?

@Ron Flatt thanks, yes there is no exact science to real estate investing but persistence pays off in the end.