All Forum Posts by: Peter LaBreck

@Nick Wilson Hey Nick, one suggestion I have is to use a commercial cash out refinance. Typically speaking there is no seasoning requirement and you can do 75% arv cash out refinance. I may have gotten lucky quick but I have a commercial lender here in Maine that will do a cash out refinance at 75% LTV with zero seasoning requirements or many questions asked. It was very simple, they ordered an appraisal after I completed my rehab in a month, then by month two he was depositing the cash out refinance into my business. Easy process and ended up with a 20 year term and average rate.

Since then I have used commercial loans because the ease of use and benefits. Hope this helps!

@Alex Smith

Although I agree there very well may be more to the score, I myself have a 660 score due to hard inquiries from multiple purchases (real estate) over an 8 month period while sustaining a low DTI ratio. There is always more to a score than the actual number. Not to bash the post Alex, I just get frustrated when my score or inquiries are judged compared to my perfect payments over a long period and great credit utilization. As far as tenants go they deserve a further evaluation. One must get a start somewhere

A few questions I have would ask is are you comfortably paying the expenses for those properties as is right now? Meaning if you wait and come up with a game plan/strategy, do you have time for that or are the expenses for that property overwhelming? 

What I meant by "to an extent" is for you to sit down with a broker and discuss options on cash out, LTV %'s and how to make the money work for you. There very well be other options than doing a full 75% etc cash out refinance, but still utilizing a cash out method versus HELOC. On another note, with the properties you have, what was the plan or strategy with those and has that plan changed a lot or just feel stuck? I think if planning for the long haul it is good to sit down and write out the strategy that fits you best. That strategy may not be a straight line and will involve straying from that plan but overall having that concept is a plus. Taking money out in cash out methods right now then coming up with a plan is doable as the cash you take out now can help get an idea of exactly what you are capable of achieving. Different mind sets for different people.

@Dorian Guin I think in the circumstance you have is once you use those HELOC funds, how quickly can you pay them back? If using cash out refinance you now have a fixed rate potentially and a base line of monthly expenses. If after some renovations you cash flow within what you see fit then I would think you would be better off cash out refinancing.

It’s a personal question that varies solely based on the persons circumstances. Another question I would ask is if you plan on keeping these properties why not leverage them to an extent? It’s a balancing act of course but some questions to ask yourself?

@Jason DeFazio

I would say it depends on the type of mortgage-residential versus commercial. Also is it through an LLC you own or is it personal?

I know for commercial they generally do not care because it is asset based versus residential where they want every penny accounted for. If it is commercial I’d expect you to be fine.

@Amanda Scully

Overall great responses and I completely understand where you are coming from and your goals. If you are in a position and can be comfortable with the risk then go for it. It is a lot of risk and a few individuals mentioned you need to be in a financial position prior to a real estate venture. It isn’t without its headaches and days where you want to quit.

Run the numbers, then run them a few more times. If you still feel comfortable then do it.

Account for holding costs such as repayment in those numbers you run. Add extra wiggle room to account for those unexpected costs. Create 1-3 exit strategies.

And good luck!

@Michael Blakeney

Not sure if it’s too far but I think for you I would call. I don’t have a personal benefit from this guy other than he is refinancing my brrrr after one month from purchase date.

Matthew Veith from Machias savings in Portland. PM if you want his contact, it’d be worth calling him and asking, I know he is able to do out of state because he is financing me on other properties in NH.

He does 75% LTV commercial.

Worth a call since no seasoning requirements

@Emily Auert

Private message me and we can connect, I have a few realtors I enjoy working with

Anyone looking for more info on Machias feel free to message me.

I am posting an awesome contact for a commercial no doc lender out of Portland Maine. He took my two-unit duplex and cash out refinanced it within a months time. He has been awesome to work with and guides you through the process even as a newer investor. Super friendly and communicates effectively.He does 75% LTV cash out commcercial loans with only a personal guarantee and a credit check. Contact info below...Message me if you have any other questions, I have no ties besides using him as a bank to get me where I want to go.

Matthew Veith

Machias Savings bank Portland Maine

@Jessica Kirby I know people have given some great answers but my advice is make a list of credit unions/small area banks. Call them on the phone instead of email or online applications. Talk to them openly about what you want and want to do long term. I think I called around 5-8 banks before I got a great cash out refi on an investment property. Even going in person if possible is a huge help.