All Forum Posts by: Paul Jones

BTW, Kyle. That is the exact type of buy and hold strategy I want to do, but folks aren't willing to lend on distressed properties either as I am sure you know. Can't use a hard money guy plus cash of my own if I can't do the cash out refi. I am definitely looking for a solution to this.

Thanks Kyle Hipp. I spoke to the small business loan guy at our bank and still hit a brick wall. What type of commercial lender are you referring to? They put it like this: If I own my home, a vacation home and an income property and I start having financial difficulty, which one am I going to stop paying first? My response was, it's a hard asset either way so what difference does it make whether I take out a HELOC on my primary residence or do a cash out refi on my rental property, which has a renter in it on a lease, BTW? They still said no.

I guess, to boil it down simply, can you get additional, traditional mortgages on properties in Texas strictly for investment properties? Right now we have two properties free and clear and zero mortgages, and as I stated we have the credit and cash for down payments. When we asked this question to the mortgage loan officer at the bank he said NO. Is this just Chase's policy or all banks and is this typical of other types of mortgage lenders these days? I was truly astounded at the lack of help I was getting from my bank, especially given how good we look on paper. Might as well throw this in there too, they also said banks don't do "personal lines of credit" anymore. Signature loans for us old timers. That was quite a surprise too.

Thanks Tyler and Chris for your replies. I will check that link and I will speak to some other mortgage lenders. Another thing the banker stated (from Chase, BTW-figured he knew what he was talking about) is that they said no-one will let you get additional mortgages in Texas even with 20% down and good credit. I couldn't understand this, but they said it's because the banks are afraid of REI's these days and they don't want to get stiffed if things go south. Is this true of all RMLO's are was he speaking about banks mainly? I was truly amazed at the responses I was getting from the small business loan officer and the bank's mortgage loan officer. They made it sound like it was impossible unless you can buy rental properties with cash, free and clear. They kept trying to get us to do a HELOC on our primary residence. My strategy is to have two or three rental income properties cash flowing and then learn more about and try my hand at rehab/flip, which I have been studying for a while now.

I am a newbie, but I have one free and clear rental SFH with excellent cash flow. I wanted to do a cash out refi of about 50% LTV to get the next one or two, but was told by my banker, "can't do it." He said no bank will do a cash out refi on any property that is not your homestead/owner occupied due to a Texas statute TX50a6. That really blew my buy and hold strategy and hopes to build my rental property portfolio all to heck. My banker basically said that it's a cash business and that's the only way I will acquire additional rental properties. I know people must be doing it somehow, some way in Texas without having tons of cash to buy properties free and clear. I have some cash, but don't want to use all my capital up on just a couple of income properties and then find myself up against a wall and not be able to buy any more. We own our residence free and clear but do not want to do a HELOC on our residence. We want that to be our safe haven no matter what happens with our investing. We are middle aged and don't have decades to save and then buy another property. We have great credit and look good on paper. The one SFH income property mentioned above is being held in our LLC and we are building our business credit as we speak. I know you fellow Texans have found a way around this TX50a6 rule. Please clue me in as to how to proceed and acquire additional income properties (buy and hold) for our retirement income strategy. Any advice would be greatly appreciated.

Thanks for the Facebook link Adam Roberts.

Please provide a link to the Facebook page for the DFW meetup events. Thanks

Hi ya'll. I'm new here and very interested in semi-rural rehabs/.flips as well. Josh R., forgive me, but can you are someone else tell me what "MH" stands for; quote "I have done one MH on 2 acres in Wise County."? I would also like to know what you guys consider "rural?" have seen many varied opinions on this. Thanks.

I was looking at Rehab Valuator also. It looks pretty good and I have watched a few videos and training sessions. Good to see some of you like it before I bother downloading it. My only question for now is does it run completely independent of the internet? In other words, can you be offline and still use all of its features? Also, from what I can tell you can only get it online and not on a disc. Is that the case? Can you download it on two compuetrs and "network" it? Thanks...

Thanks for the welcome you guys. Thanks Josh and Mehran for the video link, which I have watched. That guy, Ben has quite a story alright. Very inspirational. My health issues are not near as serious as his are thankfully, but they do necessitate I make a change. I can still do lots of running around and activity, just can't do any real lifting or heavy exertion anymore due to several back surgeries. Hey Josh, how long have you been investing? I see your not too far from me!