All Forum Posts by: Monti Harris

Did you sell this property?

What is the status of this property deal?

Makenzie,

I live in Indianapolis and know that area.  Very difficult.  Backs up to interstate. Is that the best price you can do?

Monti

John,

I am from Avon, IN and am in your situation as well. I went to class, set up LLC, went to buy first property and found out that they wont lend to LLC. Found a second, went with Quicken and got the same answer. Found my THIRD, and have no cash, but lots of equity. Talked to investor friend and he suggested a commercial loan.

Working with a commercial loan officer at a bank in Frankfort, IN with an office in Fishers, IN and will be closing on my 3rd property, all will be moved to the LLC because the bank wants that, and I will not have any cash out of pocket to get the 3rd property.

There is some drawbacks but there was, as you and I found out, with going 'residential' mortgage route as well.  I will be willing to share banking information.

Monti

Karen,

I am financing my 3rd purchase by using the equity i have in my first two properties.  I am going through a 'farmers bank' that is giving me a commercial loan for all 3 properties.  I have enough equity to finance the third with no money down.  

Before you get too excited, this is a little more expensive.  Interest is 5%, Term is 20 year Amortization with renewal after 10 years.  Interest rate is fixed, but can be adjusted every 5 years.

I have the 3rd place already rented and cash flowing very nicely.  If I waited, like you mentioned, for a year to build up the cash to buy it conventionally and save the 1.5% interest, I would have lost the property.

Oh yeah, I learned that the reason the banks wont do the equity position, no cash, is because they sell the loans, or have the right to.  The bank i am doing this deal with will service the loan to maturity.

Good Luck,