All Forum Posts by: Randy Gillespie

@Allen Fletcher is right on, its time to negotiate. Small lenders are great because they have flexibility. Loan officers are not always the most creative people, they know their guidelines and they can recite them to you. But you as the entrepreneur need creativity.

Recently, I was negotiating the loan terms on a 42-unit apartment building we are purchasing. The lender, with whom I have a long-relationship, only does 75% LTV loans on commercial loans. I asked for a 80% LTV, and they said, "No, we never, ever go to 80% LTV." This purchase was for just over $2 million, so the difference in 75% to 80% LTV was just over $100k. I then asked, "If I put $100k into a 6-month CD at your bank, will you go to a 80% LTV on the loan?" This would allow the bank to increase their lending limits and make more money by lending out my $100k. In 6 months, I get my $100k back, and I'm left with the loan I wanted. The bank agreed to my structure with a 12-month CD. Until this loan, this bank had never done a 80% LTV. That changed because I was willing to ask.

Well played. That's a great tactic @Jered Sturm

0 Votes

Check out podcast 172. About a Biggerpockets member who did just that as his first investment. Not easy but doable.

2 Votes

I used a guy named Jeff Philibin at Prime Lending for my last mortgage. He was great. Actually started out with plans to do a 203k with a house but couldn't get there on a price with the seller so that deal fell through. Ended up just going with a conventional mortgage for a different house but Jeff was great through the whole 203k process as I was working through it and ended up using him for my conventional mortgage as well. Was very happy with him.

https://lo.primelending.com/jeff.philibin

0 Votes

Thanks Ian. Will check him out.

0 Votes

Can anyone recommend a contractor in Pittsburgh? Specifically the North Hills area. Looking to finish a basement and rehab a kitchen. Thanks in advance.

0 Votes

Hi all, just wanted to introduce myself. Found BP a little over a month ago and have already learned a ton from reading and listening to podcasts. In the process of moving my family to Pittsburgh and will be closing on our very first investment property next week. We will live in the property for a few months while looking for a permanent home then plan to find a renter. Have found great tips for screening potential renters on this site and look forward to using them. Then hope to continue investing in buy and hold properties over the coming years. Thanks to all who contribute to BP!

0 Votes

All Forum Posts by: Randy Gillespie

Randy Gillespie has started 3 posts and replied 26 times.

Post: Multi family financing

Post: Apartment complex as first investement?

Post: 203K lenders

Post: Contractor in Pittsburgh?

Post: Contractor in Pittsburgh?

Post: New to BP and Pittsburgh