All Forum Posts by: Kreighton Reed

@Jim Smith Welcome to BP!  Its fun to see a Solo 401K investor here in Colorado.

Travis Beehler I'm afraid 5-10 years is the best you're going to get. These loans are held at the bank and not sold on the secondary market so they pose a serious interest rate risk to the bank. I've seen some 15-20 year terms but normally those are multi-million $ deals and the bank protects itself by buying a 15 year bond so that if rates go up they aren't losing money. Another way to think about it is that your loan is offset by someone else's CD. Most CD' don't go longer than 5 years this your loan term is 5years.

Ryan Canfield I'm a banker. I would call ahead and ask for a commercial lender. If you walk in don't waste your time with the new accounts rep, get right to the commercial lender. I think the most important thing to bring is a list of questions. Your credentials are important but every banker has a box that they are allowed to work in. Before getting into your proposal I would ask questions to find out what the parameters of the bankers box are: • Do you do investment property loans? • how much do you require down? • Do you have a min/max loan amount? • What are your income requirements for these types of loans? • Is there a part of town you need to be lending more in (Banks are required to lend in low income areas and might be willing to work with you if you can help them fill their quota)

I recently heard an analyst say this about the Denver housing market: it has 10% more growth before it will catch up with other city's in the US with the same demographics (population, # of sports teams, # of colleges etc.) Denver investors look at values in WY, UT, NM and think Denver is overpriced. If you are from a costal city in either California or the Northeast, Denver prices are very reasonable.

Hi BP. I just joined. I'm a banker that helps real estate investors from around the country set up checking accounts for their Solo 401K/Self Directed IRA's.

I reside in Denver Colorado but am able to help customers around the country.  I have worked for one of the largest banks in the US and am currently working at a small community bank.  Each has their niche in the marketplace in helping real estate professionals and investors.

I'm eager to connect with other Solo 401K influencers, local Denver real estate professionals, and I have an interest in growing the use of Series LLC to help investors mitigate the costs of LLC's. If your firm does Series LLC's please connect with me so I can refer investors and learn more about series LLC's.

I'm about to buy my first investment property (a condo at a ski resort) and do the air B&B thing.  My brothers and I are also considering going in together on a foreclosed wedding reception hall that is brand new.  Appraised value $750K, bidding $450.  Any advice is welcomed!

@Alicia Horton USDA loans are an amazing product.  I got into my first house with one.  How can you beat 0% down!  One thing to note:  because it is a government program they set a specific budget aside for USDA which means sometimes towards the end of the calendar year they "run out" of funds and you have to wait until January for the budget to be reset. To view a USDA coverage map go to http://eligibility.sc.egov.usda.gov/eligibility/we...

To find a lender in your area I would call the local USDA office and ask for a referral.  I called the 2 largest mortgage firms in my area and asked for someone that had recently done one.  It took me a few calls but I found someone that had done one recently.

@Kyle Doney Great point! The values in Denver are not accrete with the surrounding states. 100K property would be easy to find in NE.

@John Smith For that dollar amount I'd look at a medium size bank or CU.  The underwriting for a 100K costs the bank as much for a 400K property so most big banks push the smaller loans to the small business banker channel which lands you in centralized underwriting with strict criteria.  In a small bank you'll see that their apatite is squelched for sub 100K loans due to the before mentioned cost of underwriting.  I'll PM you some medium sized banks in Denver that can help you out.

Originally posted by @Devin Pickett:

OK. Do i need to have an account with them in order to do so? 

 I'm a banker. To answer your question.  It helps to have a meaningful relationship with the bank.  $100 in a checking account is not a meaningful relationship.  That being said I recently had a real estate investor wanting to do his first deal.  He came in and opened $100 checking account and let me know that he wanted to do some lending down the road.  I was able to loop in the commercial lender and now we are ready for him.  We would feel a lot better about the deal if he moved his $50K at Wells Fargo over.  My advice, find the right kind of "small bank" that is progressive and has the technology (Mobile deposit, enhanced online banking) that you would never need to set foot in the bank.  Its commonly known that most big banks operate the same and for the most part have the same structure in their products.  With small banks you can run the full gambit... do your homework.

Welcome to BP Shiv! I would look into Self Directed IRA or 401K, both of those tools can drastically cut the time between "saving money" to "purchasing a property". Basically you can use your 401k/IRA $$ to purchase real estate.

@Jai Deva I have a friend that used a firm in Las Vegas: Jeffrey Burr. I've dealt with series LLC's on the bank side. They save a lot of money in annual filing fee's with the state. One area of frustration was finding a bank that would open accounts for them because they share the same EIN. I found a small bank that finally opened an account for my friend.