All Forum Posts by: John Carr

nice work

Im a real estate agent that is down in that area quite a bit - PM me to connect.  

@Aaron Hunt I haven't asked First Bank to do this but have found them willing to listen, but what you might want to do is have them set up a line of credit with the homes and cash flow as the collateral. However they are geographically restricted - example they will loan in Breckenridge but not Telluride reason being they don't have a branch near by.  As you have the home on lease options it might then be more advantageous to place that particular home on a one of loan at that time or after a certain period of time like 12 months of on time payments, but closing cost could eat into that profit too. Overall things that they would want to know how are they getting paid back (1) property (2) you or other sponsor.  Best of luck, and word of wisdom be prepared for several "no" answers until you find the right lender - that lender may even need to be a private lender.  

My lender at First Bank was concerned with the income (i.e. signed leases) covering expenses (insurance and taxes) and debt service (principal and interest) at a ratio 1.25x. Experience wasn't a big issue but my past experience. Rather as @Ed E eluded to in the event the property cannot cover the debt service can you (or whomever personally guarantees the loan) cover the shortfall. They did lend to my LLC and I did personally guarantee the loan, however I believe the lent 75% on this one, which was a duplex. That said in my past I was a commercial real estate lender for very large transaction and we would want lots of detail on who the sponsor was.

Maybe its best to start with what are you looking to accomplish as @Travis Sperr mentioned and maybe the community can better guide you. 

First Bank out of Lakewood has been great to work with on investment properties for us. The only negative is the lenders move around a bit so you have to spend a little time educating them if they are new.  

Hi there I recently left my job where I bought and asset managed large scale apartment communities and now I run my small portfolio of 4 units.  I wanted to take a step back from the stress levels and spend more time at home while still staying involved in real estate so here I am.  Im looking to build a community of resources online and thought this might be the place.  Looking forward to gaining knowledge and helping where I can. 

All the best.

John