All Forum Posts by: Merritt Whitman

@John Leavelle

Great plan--I'll incorporate your strategy into mine--thanks!

@Derek Daun

That's exciting to hear. I wouldn't have thought the big boys were worth looking at. Did you work with a particular loan officer at this banks you can refer me too? 

@Joshua Manning

Thanks for the input, Joshua.

@Brent Coombs

...    I think you may have misread my post. "Expect to find" wasn't part of the equation, searching to find and reconciling my strategy with others is, however.  Appreciate the quasi articulate, semi sarcastic response though. It reminds me of the sort-of-abusive, kind-of-deranged, Northeast Philly family portrayed in the movie, Silver Linings Playbook. Thanks for the motivation!

@John Leavelle

Thanks, John. Any of those credit unions/portfolio lenders lend in Indiana? So far the only credit union I've found in Indy that'll do 80LTV does require 6 months seasoning and also requires that you live there--they won't touch out-of-staters.

@Jeff Wallenius

Both houses are lighter rehabs. I'm purchasing one with cash (HELOC) and the other with a hard money loan. My standing plan is to do a delayed cash-out refi on the cash purchase and use the proceeds to then pay off the hard money loan. But then I'll need to wait until the 6th month mark before I can put a decent loan on the hard money property with a cashout refi

@Curt Davis

Thanks!

@Curt Davis

Thanks for the response. In your experience does that include what's available with portfolio lenders (I haven't investigated yet)?

Hi all, Anyone have contacts of lenders who will do cash-out refis on long term rentals at 80LTV? I'm closing on 2 properties in Indianapolis next week and am planning my refi strategy. So far the best that I've come up with is 75LTV on a delayed cash-out refi deal (originally a cash purchase) not to surpass the purchase price. The second property I'm using a hard money loan to close on and the best I've come up with is an immediate cash-out refi of 75% of purchase price only. Both these loans would have low to no closing costs and just be at a higher rate. If I have to then wait 6 months and repeat with conventional 75LTV cash outs at actual appraised value I will but wanted to know if anyone has a better strategy. Ultimately I'd like to cash-out refi both properties at 80LTV (of actual appraisal) so as to not leave any "money on the table", avoiding potential lost opportunity cost with other deals. Any advice or suggestions would be greatly appreciated. Thanks!

@Jamie Henkin You're out of your mind if you don't go and visit these properties and operators first. @Dustin Cook offers sound advice--I suggest you heed it or prepare to get swindled. The opening line advice ("It's definitely not necessary to go and visit it..." offered by @Ali Boone is simply irresponsible (although her two bits about home inspection are very reasonable). One of the company's properties she markets is called Maverick Investor Group, supposedly one of the more reputable turnkey middlemen. I made the mistake of going into contract on one of their "investor advantaged, in the path of progress" homes in Indianapolis through their local provider IndyREI. I did it with photos and phone calls only, and man was I sorry. Long story short--turns out IndyREI didn't even do the rehab themselves. Apparently they bought it site unseen from some other flip operation and then marketed it through Maverick. Both a home inspector and an independent person on the ground I hired to take a look at it said it was one of the worst rehabs they had ever seen. There were a litany of major repairs needed (structural work, mold infestation, an unusable garage that needed full replacement, broken a/c, big hole in roof, etc. etc. etc.).  Luckily I was able to get my earnest deposit back and get out of the deal (though I lost the inspection fee). Immediately after I got out of it, Maverick relisted the property for sale at $14000 more than what I had been in contract for! 

@Jay Hinrichs I have more "surface to skim"--just had another near miss with another supposedly reputable turnkey provider in the Indy market--love to get your input as well as @Chris Clothier's on how I could have done it differently. I'll start another thread...perhaps "Evolution of a Sucker"? Lol.

@Chris Clothier  You hit the nail on the head, Chris! I've received private messages from local RE professionals in the Indianapolis Community after my original post (on the other thread) describing exactly what you laid out as the possible explanation for this fiasco. They know the players involved and of their less than stellar reputations within the community--the remarks were quite damming. Any insight on why such a well-liked public persona would put at risk their personal reputation by proceeding in such a fashion? I would think there might be easier ways for someone with such notoriety to make money being a straight-shooter in RE and "leave a legacy" for his/her family.