All Forum Posts by: Nick G.

Hi @Account Closed thanks for doing this.

I have a couple of things I'd like to ask: Over the past 5 years I have bought three (two 2-unit and 1 single-family) rental properties in NJ which I own free and clear. The properties are all in my name. In addition I have my primary residence which has a mortgage. The cash flow from the rental properties is about $3000 per month. and this is essentially my only source of income.

I'm looking to buy an additional rental investment property and am looking in to getting cash out for the equity in the three investment properties. I'm working with a broker and my debt-to-income ratio (based on my tax returns) won't qualify me for a traditional bank loan. This is in part due to one property being rehabbed for most of 2016, so not much income along with deductions. He said he'd look at commercial loans. What advice would you have regarding financing future purchases?

Also I was thinking about forming a LLC to hold the investment properties. What implications would having the properties held in a LLC have as far as financing go? Do some commercial lenders require that properties are held by a business entity?

Thanks,

Nick

Hi @Rasheedah Muhammad 

I live and have rental properties in Plainfield. Feel free to PM me.

Nick

Hi @Ceril S. Thanks for the feedback and information. I didn't realize that they only lend to business entities (someone at Lima One confirmed this). That shouldn't be an issue for me though - I'm looking in to forming an LLC.

I'm looking in to the possibility of a conventional bank loan based on my 2016 tax return but if that doesn't work out Lima One may be the way to go.

Thanks again and all the best with your investing.

Happy New Year!

Nick

Thanks for you input and recommendations. I contacted on of the recommended lenders and my debt-to-income ratio (as calculated from my tax returns)  is too high to qualify for traditional financing. 

I also spoke with a broker a used a few years ago and got the same message. He said we can look at my 2016 tax return where the ratio should be better now I have a property I was rehabing rented.

Out of interest, has anyone used any of the following lenders: Lima One Capital, Rental Home Financing, Visio, Peak Asset Lending?  They have cash-out and rental unit financing although at higher rates (about 6.5% +) than traditional banks.

HI Mark

Another NJ investor here too. I'm new to BP myself.  It's a great resource.

Hi everyone,

I have three rental properties in Union County, NJ that have been rented starting 2011. I own them free and clear-no mortgage etc. I am looking to get a "cash out" loan on the equity in these properties.

What banks/lenders can people recommend that are knowledgeable about these types of loan and working with RE investors.

Thanks,

Nick

HI everyone

I just joined BP a couple of weeks ago and find a great resource. I should have joined earlier.

I'd like to get some input about how should to proceed with my property purchases particularly regarding financing future purchases.

My investment history and current properties :

Property 1)  2-family. Bank owned, cash purchase 6/2011 ($98K, inc closing costs). Fully rented since 9/2011. Cash flow=$1000/month

Property 2)  2-family. Short sale cash purchase10/2012 ($90k inc closing costs). Fully rented since 12/2012. Cash flow=$1400/month

Property 3)  single-family. Short sale, cash purchase 12/2015. Rented since 11/2016. Cash flow=$1300/month

Not sure how meaningful it is but the "Zestimate" values for Properties 1, 2 and 3 are 197k, 172k,and 159k, respectively.

I also have my primary residence, part of which I rent. There is a mortgage on this with an outstanding principal balance of $145k. I have no other debt or other significant income sources.

The above properties are all in Plainfield, NJ. Cash flow is net income from rent after expenses (prop tax, garbage collection, insurance etc).

I Have approx 50k cash to put towards future purchase(s). My credit rating is 812.

I am looking to buy another property for holding/rental and am looking in to the best way to finance this. What opportunities are there for using equity in existing properties for future purchases? Conventional loans, other loan types?

Thanks

Nick

I have three investment properties in Plainfield . 
It's a good rental location with some nice areas on the east side near Scotch Plains.

The west side is more run down.
North Plainfield is next door and also reasonable and good rental location . 

HI everyone, 

I'm in Plainfield,  NJ. I have been investing in real estate for 5 years and currently  have three (5 units) rental properties in NJ.

My primary focus is purchasing and renovating properties for rental.