All Forum Posts by: Nick Matteson

Hey BiggerPockets,

I'm looking for a really good bank for Commercial Lines of Credit:

-Longer term Line of Credit (10 years ARM, at least 20 Year Amortized)

-$250-500K range per property/line

-Rates mid 5% range

-Up to $1-1.5 million in total funds

- I need a bank that's good to operate across state lines. Specifically between CA and WI, and preferable more states in Midwest, South East.

Our situation:

We are looking to take 70% equity out of a several 4-10 unit apartment buildings that are free and clear, and use the money to continue growth by more purchases. 

We have excellent credit 758+ (but did have a short sale in 2012, its been ~6 years since that mistake.). 

We have ~100 units, so loan applications are tedious. I want to focus on solid recommended banks.

We live in CA, and the finance-able properties are in WI

We are checking out options now with Wells Fargo, Bank of the West, BMO Harris. 

Do any of you have a similar situation, and absolutely loves their bank for ease of getting Lines of Credit, and wants to give a recommendation?

Cheers, 

Nick

Thanks @Michael Smith for the great, detailed explanation.

I calculated both the (1) Income and (2) Cashflow prior to all purchases and so knew with some degree of certainty what I was getting into beforehand, including all the items you listed. My focus on cashflow was of the most important factor in the decision for each home, so I do have positive cash flow including all costs (even if initially it is only a little for each property.) It is still early days for the mortgage, and rents have not appreciated much yet. @Deborah Burian

Thanks,

I see why the IRS sees it as earned income. But I see that technically it doesn't exist unless I sell my properties, so I won't count it in the cash flow.

Isn't it just cash directly into your net worth?

When everyone talks about clearing $100 a month for their rentals are they counting principal paydown as part of income or expense?

All of the last minute tenants who 'needed to move immediately' have turned out poorly for me.

They have fallen into 2 categories :
1) They weren't actually happy with the home, since they put themselves in the situation where they felt pressured to settle for anything they can get. They complained about EVERYTHING, and were pain in the butt tenants. In the end it was a hassle dealing with their whining baby attitude every month. Good riddance.
2) They were happy with the home but they had absolutely NO planning skills, and even if on paper it showed they could easily make the rent - they couldn't get their ducks in a row each month and were like wrangling greased pigs. Month after month after month, it was Late Fees, Angry texts, phone calls, and emails to get the rent.

I never want to deal with either again, because both cost me time and money I don't want to waste. I want somebody who can plan at least a month, or 2 weeks ahead.