All Forum Posts by: HJ Bercy

What are my options to get a loan under LLC using my portfolio? We looking to buy a 18 unit building (asking $190,000). Needs rehab (estimate $200k)

We looking to get commerical loan that can cover the purshase price and some of the rehab.

My background:

We started investing in Detroit in 2016.  We have 10 rental properties. 

7 are performing well bringing in about $4,100/mo. (Some are section 8/ Some are cash)

3 more are now rehabbed and reviewing tenant applicants.  Potential additional income of $2,700/mo.

All properties have no loans. Paid in cash.

Being conservative, we estimate value of homes from 20k-50k. Totaling 250k market value.

Credit score solid 700.

Questions:

(1) What are our options to obtain a commercial loan? I have seen cash-out refinance as an option 75% LTV

(2) Could a blanket loan be an option?

(3) Should we wait a few months after filling last 3 properties with tenants before going for loan?

Any tips or sugesstions  are apprecaited.

HJ

@Nyelle Johnson  and @Jenifer Levini  .   I invest in Detroit and I am out of state.   I went in a couple years ago and bought a few properties. I did waste time on some horrible contractors ( I can give you name/numbers on those guys to avoid).   I also found solid reliable guys that been rehabbing, TLC repairs for many of my properties.

I manage my own properties but still can refer you to a PM if needed.  I also have a tenant placement guy, that will get your home secured/change locks and prep for new tenant. 

I do fly up there several times, as I like to get pulse of the areas I invest and meet the guys I work with over there.

If interested, let me know.

@Born R.  Are you looking for general contractor for Detroit area? I have a few properties in Detroit area. I can refer you to a PM or GC if needed.  Just let me know.

 Hey Anthony, I'll message you too.

Good to know about using Darren.   I have 11 properties in Detroit. 10 was via quit claim deed. 

I already quiet on property using American Title Company in Detroit. It was right about $2,000 when all was said and done.

Eventually, when I'm ready to make move and sell, I will need to do this for others.

 Oh! okay. Well thata a bit surprising. They had a good concept and everything being done online with portal access.   I guess somewhere the overhead costs or all the requirements they ask from owners prior to managing the building became too much.

Thanks for heads up.

Welcome Eric! Wish you best of luck.   Hope you do more postings!!

Hey Mallory,

I have used Kyle Hosley who is a  BP member here too. 

He managed my 2 family unit for about a year.  Can also look at Castle (but they require a lot of things needed before they take you on).

Congrats Denis!!

I too am in Dallas and have invested in Detroit last year.  Its a challenging as you learn along the way.  

Made some mistakes and learn from it.  Misktakes on wrong contractos to finding the right one.  Mistakes with wrong tenants to finding the good ones. Mistakes with even wrong eviction attorneys to the good ones. And also learning how the city official works is another learning process (Wanye County, Taxes, DTE etc..)

Once again congrats, I see property values going up and up which is another good thing.

Please add us to listings too.     [email protected]