All Forum Posts by: Mark DeLorenzo

@Luis R. I've had SlateHouse Group recommended a few times to me, although I still self manage.  You should check them out though - https://www.slatehousegroup.com/

Check out Burns Service Group for a reliable contractor.

Check out Burns Service Group - https://www.facebook.com/burnsservicegroup

Try Santander bank, I will message you a contact there. 

Hey Stephen,

  Check out Burns Service Group - https://www.facebook.com/burnsservicegroup/

Dave and his crew have done projects on my and other family members personal residences.  Everything from full kitchen remodels to a deck.  They will be my go to for any work on my Atown properties.

 From my knowledge if / when it appreciates + you wait out a seasoning period (normally 6-12 months from original purchase date) then yea of course you could pull more money out of the deal based on that appraised value.  If you try to pull your money back out right away the bank will only look at the cash purchase price, and give you the loan based on that.  If you find a bank that will give you 100% of the cash purchase then all you lose is some holding costs and fee's in the deal, but the one bank I have been dealing with would only give me 75% of the cash price so if you bought the house for $100k your automatically only getting back $75k if you try to refi right away.

I first heard about it on his podcast. He says the bank(s) he works with will give 100% of what is on the HUD and he even builds extra cost into that up front to cover reno's etc, the one bank I have been dealing with said nope, we will give 75% unless you wait 6-12 months. Just gotta dig around more I suppose. Same bank was super easy to deal with setting up my HELOC though, absolutely no costs to set up with them, not even appraisal.

 To my knowledge you can pull out the full cash purchase amount with some banks on the delayed financing method only, it won't be based off appraised value.  One of my local banks will only give I believe 75% of the cash purchase price though so I guess it depends bank to bank.  I don't have enough experience with it obviously, let me know what you find out!

This seems like it could make sense if the HELOC partner was having the other 2 make his payment while you refurbished, essentially he would just the hard money lender then, right? If he is splitting the payments with you guys, I don't really get it, unless he is just trying to be nice and get in good.

What is the ARV? Most of the banks I talk to now are only willing to give 75-80% of the appraised value and thats after waiting out a 6-12 month seasoning period. SO make sure the numbers make sense if he needs all his money back out.

If he doesn't mind keeping some more of his money in this one it could make sense to look into delayed financing as well so you can get most of the cash back out a lot sooner than 6 months. This option in my opinion makes sense if you need to buy places with cash offers (HELOC money) and don't mind leaving some $ in a deal.

@Tyler De Young we own a house in Bozeman and rent it out to long term tenants to make it worth it, I am in a residential area so vaca rentals (under 30 days at a time) would be a pain.  Be careful where you try to buy if you want to vacation rental it, the city has a good deal of rules about it now - https://www.bozeman.net/government/planning/short-...

I am not an expert but the prices just seem to keep going up and that goes for anything commercial as well, seems like it would be really hard to get in and still make some sort of cashflow at the price you would have to buy in at.  If someone else has some knowledge to share on this I am all ears, I love Bozeman and my family may be moving out in the summer of 2020.  We also own a little cabin up in Three Forks, that seems to be appreciating quite nicely as well (although this isn't why I bought it) as Bozeman and the surrounding areas like Manhattan just keep building and pushing out.

I'd probably look to invest in Butte if I moved out to MT but I need to do more research.