All Forum Posts by: Kyle Schlosser

@Samuel Yee While I’m of the belief that managing my own (to get started) would be a great learning experience, I wouldn’t be too sad to see it professionally managed...especially if it’s something that makes the bank happy as well and can get the ball rolling.

@Samuel Yee Thank you for the information. Both good (and not so good) to hear. How much previous ownership is required—just one?

@John Warren Very interesting. I appreciate the feedback. I’m absolutely open to either structure, use of an LLC/other entity or straight through as a personal loan. I’m going to keep searching and modify my approach a bit to be as sure as I can that I’m properly conveying my intentions and also asking for the right type of loan product. Thank you!

@Jeff Ronningen Thanks for mentioning that. I have zero properties at this point...and that could theoretically be a serious factor, though I didn’t expect it to be. I expected this to be an easy process of matching personalities & alignment with goals. It would be (more than likely) 2-4 unit properties as I’m just starting out. This isn’t at all a case of non-approval, it’s the banks (so it seems) lumping non-owner-occupied 1-4 units into a full-blown commercial category. I will happily, and I’ve indicated this in my lender meetings, create a business entity if required.

And for clarity, the banks have all been smaller, more community-type establishments, the majority of which are keeping their loans in-house. One offered 65% LTV, Max 20 year am and made no delineation between 1-4 or 5+ units, essentially the opposite of what I would logically expect...it was all the same to them as they were “investments” as opposed to primary residences.

@Stephanie Potter And that’s why I’m scratching my head. It’s like the smaller, community banks that I’ve gone into have no appetite for non-owner-occupied status properties or something. I expected the process to be about finding a bank I liked as opposed to finding one who even offers what I considered to be “standard” financing terms. I realize it’s not for a primary residence...but that’s what the concept of investing is... How could I be phrasing what I’m looking for in a way that’s so wrong it’s giving me these undesired results?

@Ray Johnson @Brian Garrett @Nathan G. This would be for a non-owner-occupied buy and hold. As I gear up to begin, I wanted to try and get my financial ducks in a row (as much as I could) prior to seeing properties. I’m not sure if the chicken or the egg is supposed to come first, if you will.

@Brian Garrett I was simply having initial, in person conversations with the banks...while I have no doubts about being bankable, we didn’t even get to the point of running actual numbers, credit, etc. I was constantly finding 20 year am, one had a “maybe” answer to 25 years.

Does any bank here do this? I’ve sat down with half a dozen+ smaller banks in Louisville and not one has indicated that they could do a 30 year am in any capacity if the property was anything other than a single family home. I’m scratching my head and open to any recommendations.

@Scott Schultz That's excellent. You most certainly have it down to a science…the fact that these aren't war zone areas is incredible…the fact that this is working out so well, it's relatively long distance and with property management is even more incredible. Major kudos!