All Forum Posts by: Neerav Patel

Hi @Brian Pinckard ,

Below process might help you because in that way I found my local bank that gives me little freedom compare to big guys.

I went to google maps and just types "banks near me" and started to go through list and removed big banks from there. After that I saw for the particular bank if it had more then 5 branches , I removed those and then started calling. One thing you might want to ask is "Are you using federal money or keep loan in house?". If they keep loan in house then BINGO!!! In that way they can set there own rules to some extent.

Then I will say start to cultivate relationship from there. Open account with them , may be put your partial direct deposit from salary(if you have w2 job) in there.

One more thing - you mentioned you own a home "Outright". Does that mean you don't have mortgage on that? If yes, than I heard about Fannie Mae exception in one of recent BP podcast. What it basically means is , if you bought home via cash or hard money , then Fannie mae gives you exception for cash out refinance and you can refinance before 6 months. So I will suggest try lenders who uses Fannie Mae and explain them about this exception. And I will assume many of lenders will not know about this, so be ready with your answers.

There is Fannie mae Exception that applies to people who fund deal using cash or hard money and also want to do cash out refinance.

This topic is very new for me but heard about that in one of recent BP podcast.

You might want to do some research on that.

I just bought REO property as my own residence and renovated it inside out(which is almost done).

Now I am planning on my next investment but I have trouble deciding path for finance.

On one end I can get an HELOC on my primary residence and use my savings and HELOC(if needed) as a down payment for next property and buy it under my personal name with 4.75%ish interest rate and 30 year term. (and FYI I know many lenders will not do HELOC this soon , but my local bank that I use is willing to work with me on that). Which also leaves me from using LLC protection but many lenders also give 85% LTV which is a nice plus and they are easier to get.

On other side, I can create an LLC and use my savings and HELOC (if needed) as my capital and fund deal for next investment property. My bank's commerical department does 75% LTV and they also do renovation part as 75%. But of course closing cost are higher and they offer 5 year 5% fix rate and 15 year variable, which I believe is standard. In this way I can use LLC protection but interest and terms are not as favorable as buying under my personal name. Plus 20 year term also reduces cash flow which is more important for me then little faster payment with small term.

Should I go any of above way for reasons I mentioned above or something that I miss ? Is there any other way that deal can be structured that I don't know about?

Thank you all for your time and effort. 

Hi fellow BP members,

Newbie here.

I live in suburban Philadelphia area. Right now in phase of researching areas.

One of my research area is Wilmington DE , because of lower entry cost and taxes.

It seems like one can also find deals in 20K's in area while rent is around $600-$800.

Is there any specific areas that is good or bad for rental properties?

What is usual timeframe for finding tenant (just rough estimate)?

What kind of tenant should we expect?

Where is Wilmington market heading?

And any other advice?

Thank you all for your time.

Hi guys, I want to start investing in Philadelphia and suburbs as well.

So my question is , is there any hit and miss places that we should be aware of for Brewerytown multifamily/ single family investment?