Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Pete Harper

Pete Harper has started 90 posts and replied 495 times.

Post: Rehab Strategy Advice Need

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491

A lot depends on the initial condition of the property.  We recently completed a major reno on a duplex with a carport in between the two units.  The previous owners had done an unpermitted addition.  We were going to have to take it down to bare studs anyway so we knocked down the walls between the kitchen and carport.  We were able to add two bedrooms and bath/laundry to the floorpan.  The previous 2BR/1BA units became 4BR/2BA almost doubling rent.

Our current project is a 2BR/1BA duplex.  The kitchen needed to be redone so we tore down the wall between the kitchen and living.  The tiny galley kitchen is now open concept with a peninsula bar.  The delta for tearing out the wall was $2000.  On the other side of the duplex there is a large covered porch that will make a nice little 3rd bedroom.

From my experience it is alway better to add bedrooms first.  Usually a inexpensive upgrade that returns the most in rent.  Next would be adding a bath and/or laundry.

Post: Bigger pockets android app

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Michael S.:

@Dallas James

Sorry, the Biggerpockets app is no longer supported and we had removed it from the App/Play Store. We'll bring it back again after all the improvements are rolled out.

Please go to the mobile site of biggerpockets.com for access.


 Do you know if BP plans on supporting the IOS version again.  I had the original version that I lost when upgrading phones.  This was over a year ago and still not available. 

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Nick Belsky:

@Pete Harper

As noted by others, you are describing delayed financing.  There are seasoning requirements as delayed financing has a different set of rules compared to other types of financing.  There used to be lenders who would waive seasoning with rehab completed, but they are offline right now.  Hopefully, they will be back soon.

Many private money sources are killing conventional right now.  To be fixated on rate, in this market, will make you miss out on a lot of good deals.  Rate is not a primary concern to seasoned investors as other factors of the loan are far more important and impactful.  Rate is too easy to offset.

Good luck.


I don't follow your comment on seasoning period for LOC. Assuming I use a LOC to purchase a $100k property for cash. I use an additional $20k LOC funds to renovate. After 3 months I have completed renovations and have a tenant in place. ARV of the new property is now $180k. I take out a new loan on the ARV for $135k, pay back the $120k in LOC funds and have $15k cash to reinvest. In this scenario how would seasoning be applied? This is the first loan against this particular property. Seasoning wouldn't apply to the LOC loan since it is secured by a second property. What am I missing?

Post: Weirdest teanent ever.

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491

As others have said don't jump the gun.  If you are using the standard Texas lease they have until the 5th to pay rent.  If they don't pay by the 5th you now have grounds to start with the eviction process.  Give them a 3-day notice to pay or quit.  The TX form is down loadable from the web. To serve notice you need to either hand it to them in person or send via certified mail.  I like to post a copy on their door too.  That usually gets their attention.  If they don't respond in 3-days your next step is eviction.

Assuming they start paying rent you really don't want to keep them as a tenant.  Pay attention to the end date in their lease.  You can give them a 30 day notice of non-renewal.  I usually like to wait until after they have paid the final months rent before serving notice.  That way they can screw you on the final month's rent.  What ever you do, do not give a reason for non-renewal.  Just state their lease has expired and you do not with to renew.  Saves a battle over "why".  Get them out and move on.

Post: Information about HUD properties

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Reese Nichols:

I'm new into real estate currently seeking my first real estate property where I live over in east Texas. Im interested in house hacking and I'm trying to pull together as many leads/ways to find on-market/off-market deals. I came across HUD properties and am wanting some advice on them. Are they good? Pros/cons? Financing? Any advice possible would be great!


 Additionally you may want to consider your county tax auction.  Go to your county web site and they should have a link to the monthly tax auction on the courthouse steps.  These are properties usually with over three years back taxes owed.  In many cases the original owner is deceased.  Many of the properties are in very rough condition having sat vacant.  Bidding starts at the amount owed on taxes.  Be prepared to pay cash on the day of the sale.   

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491

I don't follow you. Assume I use $100k from LOC to purchase a duplex. I put another $20k LOC funds into renovations. Three months later the ARV is $180k rented with long term tenants paying $900 each. If I do cash out refi I can pull 75% of appraised value or $135k. Payback the $120k LOC and still have $15k cash. No seasoning period on the duplex.

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Erik Estrada:
Quote from @Pete Harper:

I wanted to see what line of credit loan products that are available for commercial. I own several properties 100% that are held within an LLC that I would like to be able to tap the equity without taking out a conventional loan. I know that HELOC loans are not available to commercial investors but looking for something similar. I had planned on doing a BRRRR but with interest rates so high I can't see taking out a 30 year fixed interest loan. It would be nice to have a line of credit that I could quickly tap should a good deal come along.

Property #1 is a duplex that I own outright. It was purchased and renovated as the second property in a BRRRR chain. Funding for purchase and renovations came from cash-out refi on another 4-plex (not property #3) Gross rents $2400.

Property #2 is a 12 unit apartment complex that we paid cash for.  We've owned it two years now and have it stabilized, fully rented and with higher rents.  Gross Rents $8400

Property #3 is a 4-plex that we paid cash for and renovated.  We've owned it three years now having it stabilized and fully rented. Gross Rents $3200


For any 1-4 unit, You can do a second mortgage on non owner occupied properties. Max CLTV is 85% and the max cash out is $475,000 per property.

Maybe I wasn't clear, none of the three properties have first mortgages.  Properties are held by LLC so I need to go commercial.  I'm not looking to do conventional mortgage with interest rates so high.  With LOC I only need to tap what I need.  I don't have capital sitting around paying high interest.  LOC would be ideal. I just need to find a lender.

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Jay Hurst:
Quote from @Pete Harper:

I wanted to see what line of credit loan products that are available for commercial. I own several properties 100% that are held within an LLC that I would like to be able to tap the equity without taking out a conventional loan. I know that HELOC loans are not available to commercial investors but looking for something similar. I had planned on doing a BRRRR but with interest rates so high I can't see taking out a 30 year fixed interest loan. It would be nice to have a line of credit that I could quickly tap should a good deal come along.

Property #1 is a duplex that I own outright. It was purchased and renovated as the second property in a BRRRR chain. Funding for purchase and renovations came from cash-out refi on another 4-plex (not property #3) Gross rents $2400.

Property #2 is a 12 unit apartment complex that we paid cash for.  We've owned it two years now and have it stabilized, fully rented and with higher rents.  Gross Rents $8400

Property #3 is a 4-plex that we paid cash for and renovated.  We've owned it three years now having it stabilized and fully rented. Gross Rents $3200

 @Pete Harper    What are you looking to do with the equity?  Are you looking to buy properties distressed with cash (from the line of credit) and then put permanent long term financing on the properties paying back the line of credit? 

On a recent episode of BP they talked about the change in loan seasoning time from six to twelve months.  David Greene said he was using a LOC to get around the seasoning period.  Buy using the LOC then refinance into a conventional loan.  Since the property is not held as collateral for LOC the seasoning period doesn't apply.  

Personally I have two things in mind. First I purchased an off-market duplex that needs work.  Normally I self fund renovations from income on other properties but if I had a LOC I could complete work faster. I'm always looking for off-market deals.  If I had LOC I could be in a position to pay cash for faster closing.  Maybe use David G's LOC strategy.  

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491
Quote from @Joshua Franklin:

Hey Pete, have you looked into a private money loan?

I'm trying to stay away from private money and hard money lenders. Their rates and fees are exorbitant. The LLC has excellent credit history, 25% debt to equity, and FICO over 800. I should be able to find a more traditional lower cost option. We are in Texas if that makes a difference.

Post: Line of Credit Options for Commercial

Pete HarperPosted
  • Rental Property Investor
  • Streetman, TX
  • Posts 519
  • Votes 491

I wanted to see what line of credit loan products that are available for commercial. I own several properties 100% that are held within an LLC that I would like to be able to tap the equity without taking out a conventional loan. I know that HELOC loans are not available to commercial investors but looking for something similar. I had planned on doing a BRRRR but with interest rates so high I can't see taking out a 30 year fixed interest loan. It would be nice to have a line of credit that I could quickly tap should a good deal come along.

Property #1 is a duplex that I own outright. It was purchased and renovated as the second property in a BRRRR chain. Funding for purchase and renovations came from cash-out refi on another 4-plex (not property #3) Gross rents $2400.

Property #2 is a 12 unit apartment complex that we paid cash for.  We've owned it two years now and have it stabilized, fully rented and with higher rents.  Gross Rents $8400

Property #3 is a 4-plex that we paid cash for and renovated.  We've owned it three years now having it stabilized and fully rented. Gross Rents $3200