All Forum Posts by: John Samuelson

Thanks @Peter MacKercher and @David Ware for the referral! I'll give Chet a call.

@Scott Moulton sounds like we are in a similar place on the BRRR in the same market. Sending you a connection request, would love dive into this more and share our findings!

Thinking about trying out my first BRRR in St. Louis after purchasing some multi family with standard conventional loans to try and make my capital go a further. I've talked to a few local banks and a regional one about doing cash outs. This is what I've learned so far:

1. If I try to take a mortgage on a property that I buy in cash within 6 months its considered delayed financing, and I can only take a mortgage on the lesser of the money I put (cash plus repairs) or 70% (I do multi family) of the new ARV. Also it has to be all my money.

2. If I can plan on holding a property for at least 6 months, the lesser clause disappears and its a standard cash out of up to 70% of ARV. In this method I can use my cash or hard money.

Is their a certain type of loan I can ask for or type of bank that lets me do option 2 with either a shorter seasoning period or none? Or a bonus any one have recommendations for St. Louis banks :-)

In regards to BRRR, its seems as though I should be getting these deals vacant so I can start renovations quickly. In fact some of the hard money packages I've researched require it. The few really good off market deals I've come across are all occupied. Kinda a double edge sword... Just curious how others approach this. Reason I bring this up because it has a direct correlation to how low will take to complete strategy (also if I can use hard money), which maybe then the 6 month period isn't as important.

While this has been a great learning and networking moment talking to lenders letting them know who I am and what my intentions are I'd like to set my own expectations correctly.  Its also been fun to watch as I present different what if scenarios how little 2/3 bankers I talked know. They just sent all my questions to their underwriters.

Cheers.

Thank you everyone! This is really helpful, and will likely just use the 25% lender with the best rate.

I just got a 4 plex under contract for 89k in St. Louis. Had this financing lined up where told me they could do up to 75% (or 15% down), however when I actually got all the paper work ran through they will only do 85% down on multi family. A few other banks I have talked to have all told me the same thing, 25% down for multi families. I have good credit 800 and a great w2 job with 2 other investment properties (in a different state).

Should I just accept the 25% down, or will a conventional bank even offer a 15% down? I can afford it... just would rather put the extra money into the next deal. 

Thanks! 

I've been shopping around in South City, while I've made some offers its been crazy competitive there so far. 

Thanks @Matt M.! Sending you a message @Drew Fein.

Looking for recommendations for a real estate lawyer here in Denver, CO to draft a partnership agreement between myself and another investor.

Thanks!

Thanks guys!

@Jared Bouzek thats an interesting idea, which i had not considered for this deal.

@Matt M. thanks for the insight :) You are right about 15k, though i really don't think the house needs much more then a kitchen and bathroom. Probably fresh paint i guess... in combination with what @Jared Bouzek said I feel like its a lot of time/energy just for 15k. Not sure its worth my time.

At the end of the day, i'm more interested in buy and hold then creating another job.  Really appreciate the back fellas!