All Forum Posts by: Jorge Pesok

@Scott Hollister @Ceril S.

Okay.  So I did not give up on searching for a bank to finance my deal and think I have found one.  I have not completed the underwriting, but have passed the initial hurdles and am moving to the appraisal phase this week.  I was going to wait, but will jump the gun in case one of you are still searching and could benefit from what I have found. 

I am working with Colony American Finance to finance my project. They have offered me 75% LTV or <85% LTC at 8% interest over 30 years. I think this is a very fair deal--I am actually really excited about it but playing it cool--so I am moving forward. I will let you know if I close, or something falls through.

Hope this helped!

@Ceril S.

I most definitely will let you guys know how it turns out.  

@Scott Hollister

Thank you so much for taking the time to respond to my post.  I agree with everything you said and really appreciate the motivation bump.  I am just starting out in the business, and am finding that there is a steep learning curve--luckily I haven't quit my day job and can deal with these issues without losing much sleep. 

Though the process is grueling and arduous at times, I find it to be fun.  Also, if it was easy everyone would be doing it and therefore there would be no money to be made.  

I completely understand the banks point of view--does not mean I agree with it though.  Mostly, I find it difficult to understand why it would take me less than 5 days to take out a $100k personal loan with no collateral than to take out the same loan backed by a home worth $190k.  But hey, I am still new at this. 

My wife and I do have separate bank accounts.  In addition, the bank is looking at my business account and not my personal.  

I plan to take your advice and continue to search for a lender willing to fund this deal.  It was not easy to find Lima One to fund the first one, I am now realizing this may be the case moving forward. 

Manchester, CT

@Michael Noto 

Hi Michael, the property is in Manchester, CT

I bought a single family residential property using my own cash, renovated it, with my own cash, and have now had a tenant in the property for going on 2 months.  I am looking for a bank to finance the property, which is in CT, but am having difficulty finding a bank that will do it.  I used Lima One for my first deal, but they are giving me a hard time now (mainly because they want me to show 6 months of mortgage, interest, and insurance payments to cover the new loan AND the previous loan I closed with them last year?!  This amounts to close to $15,000.  Also, they are EXTREMELY restrictive with how I can obtain these funds, e.g., no gifts (even from wife), credit card advances, etc.  

I now realize that the smarter way to do these deals is through fix to rent loans and plan on doing those moving forward.  But I can't move forward until I pull cash out of this current property.  Any advice is much appreciated.