All Forum Posts by: Robert Buck

Nobody has any thoughts lol

Repairs are already completed on the first house and tenants are living in it. They were right at $6,500 with a lot of sweat equity. Repairs are well under way on the second and bigger house which are gonna come in at around 10k. Im all in money out of pocket at about $25k on the first one so if I can get 30k cash out I'll be $5k to the good on the purchase. On the second one I had to put 25% down so I'll be all in with Reno cost of about $32k. So I'll either be into it for $2k or be $3k to the good on it.

Looking to start building a financing relationship. Bought my first two B&H SFR in March of this year through a local broker our realtor/future PM recommended. We are up to our 6 month seasoning period and looking to do a cash out refi on them to roll on with the brrr. First house comps in the immediate area suggest an ARV of around $110k. Current mortgage is $42k so I'd like to pull around $30k in equity out of this one. Rents for $1k a month. Which will still leave me at about 65%LTV and still a nice monthly cash flow. Second house is a little bigger is sq' same area and comps suggest and ARV of $140k. Current mortgage is $40k and again I want to pull $30-35k out of this one. Rent $1300/month. Numbers out me at about 54%LTV and still cash flows. Credit score and W2's aren't a problem so walking into my regular bank to get a conventional loan should be relatively painless but I'm trying to establish more than just these two loans right now. My main objective is to establish the first two of many loans and begin building a relationship. I've always done my banking with a large national bank which won't do me much good now once I hit 10 mortgages. I'd rather not have to start over building a relationship at that point. Just seems better to lay the ground work now and build it once. I want to be able to do many more BH and potentially flips here and there. With all of that said what suggestions might this group have. I've talked with one smaller local bank whom was not investor friendly and the "commercial loan manager" really didn't understand the process as we would talk once then he would call back a couple hours later or the next day to apologize what he had said was wrong and it was this or that instead of what he had initially said. Is there a large financial portfolio institution I should be looking at or just keep searching for a local bank. I've already got a few more properties I'd like to get moving on.

I'm a newbie at REI but I would safely say the moment you aren't nervous would be a good time to walk away from the table. Being nervous makes us hyper vigilant. Not being nervous can soon turn to complacency and we both know what complacency causes. As long the nervousness doesn't prevent you from moving on good deals I think it's a good thing. I do have a question if you don't mind. How are you financing so many deals in such a short time. I bought two in march and have missed multiple deals waiting for the seasoning period to refi the ones I bought etc.