All Forum Posts by: Nathan C.

Hi, we just bought our 2nd investment home in Jax. Paid cash in Nov 2017 for a 10 day close. Seller agreed and signed the paperwork. 10 days later...probate issues.

I assumed it would sail through escrow and booked a flight out there. Had a steep discount ticket I had to use anyway. House and location is every bit as nice as expected. We want to keep it, just getting impatient. I did find out the same lady owned the house next door and it sold in Sept but was in a trust.

How long does take? Any way to speed it up? Is my interest really safe?

Thanks in advance,

Jeff

Jeff, that sounds like a great deal! If you don't mind, could you share the details of this deal that you have locked up? address?, price, reno budget?, end goals for the project?, how did you find it?

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Originally posted by @Amine E.:

@Jeff V. Hi Jeff, a Guidance line is basically how much business a bank is willing to do with you you in one year, based on your financial health. For example, after doing two deals with my small bank, they looked at my financial statements and said that they will loan me up to 500K to buy properties, I still had to come up with 10% down on each deal but i m approved for up to 500K of purchasing. This way, not every deal has to go through their committee for approvals. The guidance line is reviewed and renewed every year. So, im basically preapproved to buy 500K of properties with said bank.

Hi Amine,

This is a great piece of information. Before you started doing the 2 deals with the bank and when you were looking for the bank in the first place, did you know that the Guidance Line was the ultimate target? Were the 2 deals 30y loans or did you finance them through an LLC and use a different type of financing with the 2 and the bank?

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I bought 4-plex in Jacksonville for $93k. I'm having trouble with appraisals on the cashout refi.

Comps range from $110k-130k. I believe mine is worth $115k-$120k.
2 appraisals came at 93-96k (they used a tri and a gut job as comps). Re-appraisal came to $102k
1 appraisal came at 110k but the bank is very slow and I am unsure if they will raise it if we even close the deal (SLOW).

Throughout the process I was told a few things and was hoping to confirm with the community:

Banks have difficulty appraising 4-plexes: most appraisers do not have enough experience with every pocket of a metro AND small multifamily experience. The process of bidding out that happens to assign an appraiser may yield an appraiser that just wants the work but doesn't have the proper experience. Thoughts? Does anyone have a bank that they work with who lends in FL that works well with multi's (faster close, reasonable appraisal dispute process)?
Appraisers have to use comps that have NEFMLS records. Since most 4-plex sales do not have this and because small multi sales are so rare in the first place, they must use comps that have NEFMLS records but are likely not appropriate.

Bottom line, if someone has a referral to a bank or broker who can help with cashout refi of residential (not commercial) multi's, that would save me a ton of headache. I'm considering a package of 7 residential 2-4 unit buildings and separately 3 different quads but if I don't figure this out, I can see this being a struggle with every deal.

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Hi @Jake Recz

Thank you for the great account of your process. Congratulations in making it to where you are today. It sounds like hard work and sacrifice.

I'm newer and am considering a few options for recouping cash from a property. I have been talking to the banks and one option that recently came up is to do a cash recoup (REFI) for up to the original purchase price and then add a HELOC (must be with that bank) to cover the remaining difference. Is the person that I'm speaking with possibly not up to date with the realities? The property would be acquired ~60% of value. Did you consider this option and is this not as feasible as I was lead to believe?

The other option that I've been consider is the HELOC for as much as possible much as you did however I am concerned that when I need it most (market tanking) that ability to take cash will diminish or rate increase. Maybe I'm not up to speed with the mechanics of a HELOC.

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All Forum Posts by: Nathan C.

Nathan C. has started 5 posts and replied 24 times.

Post: Newly purchased Jacksonville home stuck in probate.

Post: 5 yrs to reach my cash flow goal

Post: Refi a Quad (4-plex)

Post: HELOC Closed! $94,000! It was quite an adventure!