All Forum Posts by: Thomas P.

It's obvious to me now that the choke point in my buy and hold strategy is financing, since anyone who follows Fannie/Freddie guidelines sees my DTI as way out of whack (due to an oddity where they'll count the debt servicing on properties against my debt but won't count the rents as income until they show up on tax returns). This isn't going to change, so I'm looking for a lender that makes underwriting decisions in house and doesn't sell loans on the secondary market.

I can buy and fix up with private or hard money, but unless I have a lender that will put long term financing in place based on the rent rolls and my track record I'm going to be waiting a long time to acquire new properties.

JT,

I am currently hunting for investor friendly banks with long term financing on non owner occupied properties as well. I started calling banks all over Tennessee. I am at a similar choke point. We are in the same boat, but I'm sure there is a way and/or some banks. We just have to find them. I'm working on a list of banks and the products they offer. Have you called every bank in Nashville yet and inquiring whether they offer anything fully amortized or any products that are fixed or have set variable rates with commitments longer than 5 years and that you are looking for fully amortized or fixed rate products of 10 years or more? I'd be willing to share what I find if you can share what you find in Nashville.

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Originally posted by @Mike S:

Are these banks closing in your name or the name of your company if you have one? We have found plenty of grest NOO terms if we hold the loan personally but not in our company's name even with a personal guarantee.

They do close them with my LLC.

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I have found that by developing banking relationships through my flipping business and relationships with other investors in your area, I have been able to do things with some banks most people seem to not be able to do, including myself when I first started 7 years ago. I now have a relationship with a banker who I attend church with that is allowing me to do some spectacular things because of the relationship and another, who was recommended to me by another investor friend and who recommended me to the banker as well offering crazy good terms. Developing relationships with fellow investors and bankers has been invaluable. What it tells me it that there are some lenders with certain banks who have the ability to make loans at terms no available to the public....based on the relationship. It still exists! The relationship!

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Fulltime flipping for 7 years, started collecting rentals 2 years ago.

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All Forum Posts by: Thomas P.

Thomas P. has started 7 posts and replied 54 times.

Post: Investor Friendly Lenders in Middle Tennessee

Post: Good terms? You know where to get better? 30 yr fixed rate NOO.

Post: Good terms? You know where to get better? 30 yr fixed rate NOO.

Post: Investor/Agent Knoxville TN