All Forum Posts by: Michael Washington

I just finished my first flip here in Baltimore and it was an AWESOME experience. I bought the property for $31k, put in $65 had the work done in two months and a tenant signed up before the job was complete. It was appraised for $140,000. I "thought" I would be able to do a cash-out refinance at 80% LTV based on a local bank who said that they could do this back in 2016.

Lo and behold the board changed their tune and now I can only get 75% of PURCHASE AND CONSTRUCTION cost!!! Not LTV!!!! And they want $30k minimum in equity to boot if held for less than 2 years. This is the same story for multiple banks I have reached out to if the house is owned in an LLC, which is the case for me.

Needless to say, my first BRRRR endeavor is not going well.

To my BP community in Baltimore (or elsewhere), I have a few questions that would help me (and others):

1. What are your thoughts on changing the ownership from an LLC to my personal name to get the cash-out refinance? Any suggested strategies?

2. I am really looking for a financial partner (i.e. bank) who has NO problem doing a cash-out refinance at no lower than 75% LTV with a standard 30 year loan. Is there one you recommend?

3. Has anyone else experienced this? Is it due to a change in the market? How have you gotten around this to execute your BRRRR strategy?

That's great! I am having a tough time finding a bank and lender in Baltimore that will do a cash out refinance on a property held in an LLC. Who is your bank and do they do business in Baltimore?

There is a private seller based in DC who has two properties in Baltimore and he wants to get rid of them FAST! He is willing to sell both at $70k. Below are the numbers. 

Property A: ARV = $80k Construction at $30k - Single Family

Property B: ARV = $100k Construction at $40k - Duplex

Should I go after them?

Any financing suggestions?

I ran across an auction property (duplex) in Baltimore that is going for $40k. We were able to walk it with our agent prior to auction and the place needs very little work (has new carpet and new paint - appliances needed). Our agent called the auction listing agent and he confirmed that we can put in a pre-offer and if it is high enough they would take it off the market.  Finished property values are at $80k in the area and rent for $800-$1000. We have private to put a down payment on the property for 20% but our mortgage brokers stated that the money needs to be seasoned for 60 days. How do I get around this? What type of banks/ institutions will give me a loan and not require the money to be seasoned for 60 days?

Awesome! Thanks!

New member to BP here in Baltimore. Has anyone had any experience (good or bad) with FannieMae's Homestyle Renovation Loan? (Not to be confused with FM's Homepath Loan)