All Forum Posts by: Quinton Harrell

@Jennifer Maldonado, I look forward to checking out your Youtube channel on my dedicated education day this week. Thank you for sharing.

@Colby Fryar the bulk of my calls and inquiries have yielded the conclusion, thus far, that cash-out refi's for investors are at the bottom of the priority list for lenders (push-back to refute that is quite welcomed); taking on permanent financing at such low rates aren't as appealing. It appears the priority order for underwriters is:

1. Home purchases

2. Home refi for interest rate reduction only

3. Cash out refi for homeowners

Cash-out refi for investment properties are at the bottom of the barrel. Well, for those lenders and institutions I've talked to. With a strong credit score, a requirement of W-2 info. hindered us in certain circumstances being fully self-employed as of 4th qtr 2019. Another thing that happened in the roller-coaster of uncertainty is some lenders pushed their seasoning period requirements to 12 - 24 months.

Undeterred, we continue to develop those relationships for the future, secured an investor for another all cash deal on a duplex last month for a fix and flip, and have decided that we're selling the townhouse in question also. The numbers, our strategic plan, and the potential of new opportunities lead the decision. So, not able to preach the gospel of successfully executing the BRRRR strategy yet, but in due time.

Thanks for the insights and input. 

Love shout to this community,

Q

@Jenny Roman Sound advice. 

Be safe , be well.

@Jaysen Medhurst LOL! Exactly!

No sweat, @Jaysen Medhurst. As you see, I bumped up the ARV by $5k in my response to you. Trying my best to stay conservative. I got a few leads from my realtor in S.C. and some of his intersect with some of the ones I found when acting on your suggestion. So now it's time to start making calls. Thanks.

@Herm M. with this being my first one, I haven't attained overstanding of the process yet. However, my understanding, to Jaysen's point, is it all depends on the deal. For instance, my banker here in VA takes a global view of the conventional and commercial indicators. i.e. tax returns, DTI, DSCR of 1.2 or more, credit score, LTV, etc. Unfortunately, they're not financing a deal in S.C.

10-4 @Jaysen Medhurst, I'm on it.

ARV $95k

Thanks

Greetings and blessings to the BP community, hoping you and your Fam are sustained. 

My wife and I closed on a bank-owned property in S.C. in late September 2019 with a plan to implement the brrrr strategy, which we're in the latter part of the process (seeking refi.). 

- $40k purchase 

- $35k in reno and holding costs, 

- ARV of $90k conservatively (3bd, 3ba, 2010 sq. ft)

We moved a tenant in on March 1st and cash-flowing $256/mo. Tenant's employment is secure and is set up on auto-pay for the next 12 months, but we technically only have March and April for pay performance metrics. One notion is to hunker down and wait this thing out for several months, with a solid tenant in place. However, I'd love to pay off our micro-lender ($30k) and investor ($35k) in the midst of all the uncertainty. The purpose is three-fold: To strengthen the lender/investor relationships for future opportunities, gain a better rate in a long-position mortgage, and capture a bit of cash to strengthen our liquidity position.

We're in VA and my flaw in the strategy is I wasn't consistent and aggressive in farming banking relationships in S.C. early in the process. Now, I'm curious - with the pandemic's financial relief initiatives front & center and banks trying to manage the demand while managing a new form of risk and lack of gov't guidance - is there clear opportunities to get refinancing done? And if there is, I'd like to get pointed in the right direction.

- Is the seasoning period 6 months from closing or 6 months of tenancy?

- Should I follow the wisdom of sitting back and waiting till the dust settles?

My gut says it's really been time to act, to get some cash and queue up for coming opportunities. Are there any portfolio lenders out there, in S.C. or elsewhere that I can be reaching out to?

Pardon me! Lots of questions packed into this, but I believe in the BP community's wisdom to deliver!

Thanks in advance for any insights,

Q

Thanks, @Andrew R. Lucas, I appreciate the referral; I'll keep Herring in mind when we begin to accumulate more properties. My State Farm agent in Charlottesville connected me with an agent in Columbia, so we're covered now.

I hate that I'll miss the meet up next Tuesday; I have a few engagements in Charlottesville to attend that day. Keep me posted for the next one.

Cheers,

Q

@Aaron K and @Bill Brandt, I appreciate your responses. I've got turned down by a company because I didn't have an existing policy with them.

Logical decision regarding the deductible, Bill. Thanks. Definitely won't let another 48 hours pass without locking in the new policy.

I don't want to over-insure either; Do you base your coverage on the investment amount, current value, or ARV?

Hello BP,

Just closed on our first rental property; a 3/3 townhome in Columbia, SC. I'm gathering quotes for a rental dwelling policy and we don't have any existing policies in the state. I've sought a referral from our current agent of our homeowner's and auto policies here in Virginia, but I'm looking for suggestions for additional quotes from solid brokers in Columbia.

Thanks in advance.

Thank @Jerry Padilla. To clarify, you do mean needing 20-25% down on the renovation loan?