All Forum Posts by: Len Roche

@William Murrell thanks for the advice. I completely overlooked the mortgage fees. I'll be sure to check the fine print to make sure I am considering the entire cost of financing and not just the interest rate.

I filled out two applications with two local banks in Rochelle: First National Bank and First State Bank. I'll be sure to share my experiences with their competitiveness, their willingness to get the deal done, and customer service.

@Joe Fairless Wells Fargo had great customer service. The broker pretty much got me approved within a day of receiving all my statements of assets. Your 15 year rate was very impressive. What year did you get refinanced?

I checked out the American Airlines CU website and noted down their rates. Their 30% mortgage compares well to other banks on Bankrate.com. If the rates that i get from the local banks are disappointing i'll give the AACU or another credit union a try.

Edit: I am not eligible for an AACU loan as I don't work for the airline industry.

@Mindy Jensen luckily the credit look up from Wells Fargo was not hard and shouldn't affect my score, according to the broker anyway. Just to be sure i'm hoping to finish shopping in a week. That should keep any dents to my score at a minimum. 

I'll be sure to consider closing costs as well to ensure apples to apples comparisons. Thanks for the help.

Hello all,

I just got qualified for a Wells Fargo 30 year mortgage on a $200,000 purchase limit with 20% down for a small multifamily investment property. This is my first interaction with the conventional financing system. I haven't gotten the details, but the pre-approval letter should be sent soon. I don't have to worry about a high debt to income ratio as this will be my first purchase, I have zero debt, and my wife and I have good W2 income.

Since the interest rate on a mortgage can have a big impact on cash flow, I figured shopping around for different quotes would be prudent. I have 7 small local banks near me and can work with the big guys through the phone if necessary. I started with Wells Fargo as they are my primary bank and I have a good relationship with them.

Is there a general rule of thumb for interest rate offered by banks, big or small?

How should I cast the net with my mortgage search among the different banks I have access too? 

Assuming apples to apples comparisons, I am only considering the interest rate they offer, is this a mistake?

Any Recommendations for banks you have worked with in the past?

Thank you,

Len Roche

Hey Alex,

Welcome! Just like you I'm new to the REI world. I live nearby in Rochelle and considering investing in DeKalb/Sycamore and Naperville. Both markets seem attractive. I'm hoping to get something under contract by the end of this year. If you need any advice on the closing process in the surrounding area let me know. I'll be happy to help.

Thanks Craig, 

I looked up your profile and the locations you work in and I would be interested investing in the area for the right opportunities.  If you're free we can definitely talk some more about what the Rockford area has to offer. 

Len Roche

Hi all,

Just moved to Rochelle IL with my wife Cassie, and looking into investing in small multifamily units in the surrounding areas and house hacking in Rochelle. These will be to buy and hold for cash-flow. Three to six month time frame for our first purchase and 12-18 months on second. We're both chemical engineers and have busy but well paying jobs. The catch is that we both have to drive 45 mins to/from work. Rochelle is the geographic middle between our two jobs.

Not as much opportunity in Rochelle (pop 10,000) but I'm:

15 mins from Dekalb

25 mins from Rockford Adjacent

45 mins from Naperville/Aurora

45 mins from LaSalle/Peru (Cassie's work location)

1 hour from Janesville/Beloit (My work location)

We're open to cast a wider net if the opportunity arises.

Currently we're saving approximately $5,000 every two months for down payments and listening to the BP podcasts on our commutes. We've read the BP Books on Rental Property Investing and Managing Rental Properties and I have just started reading the Millionaire Real Estate Investor.

Our goal is to be financially free in 20 years, and use real estate as part of our investment portfolio to achieve that.

I’m glad to have joined the BP community, and look forward to learning and helping out whenever we can. 

Len Roche