All Forum Posts by: Ka'Ron Purnell

Thank you. Can you provide a contact if you have one?

I need some advice or assistance obtaining an ELOC on one of my investment properties. The property is a triplex and was purchased through my company which is a C-corp. The current mortgage on the property is a commercial mortgage through Navy Federal.

My goal is to open a credit line of at least $50k. I want to use the line to complete some renovations on two of the vacant units in order to re-stabalize the property and get it 100% occupied again. Ultimately, I am trying to avoid opening the line in my personal name or as a HELOC in order to maintain the corporate separation from personal.

The property currently grosses $750 per month in rent with 1/3 units occupied. At 100% occupancy, the property will gross app. $2400-$2600 per month at fair market rent for the area. The property is located in Newport News, VA.

I've been reviewing past posts on BP and I have already reached out to and been unsuccessful with some of the recommended lenders mentioned in the forum threads such as Wells Fargo, TD Bank, and Navy Federal.

Wells Fargo- Representative said I am not eligible because the ELOC is only available for 5+ units.

TD Bank- The property address may be outside the investment footprint. The application and documents have to be filled out in person. I'm currently, not able to comply due to being stationed in Georgia at the moment.

Navy Federal-Reaching someone in the business department to actually answer the question is a challenge in itself.

Any advice, resources, or recommendations would be greatly appreciated.

I need some advice or assistance obtaining an ELOC on one of my investment properties. The property is a triplex and was purchased through my company which is a C-corp. The current mortgage on the property is a commercial mortgage through Navy Federal. 

My goal is to open a credit line of at least $50k. I want to use the line to complete some renovations on two of the vacant units in order to re-stabalize the property and get it 100% occupied again. Ultimately, I am trying to avoid opening the line in my personal name or as a HELOC in order to maintain the corporate separation from personal.

The property currently grosses $750 per month in rent with 1/3 units occupied. At 100% occupancy, the property will gross app. $2400-$2600 per month at fair market rent for the area. The property is located in Newport News, VA.

I've been reviewing past posts on BP and I have already reached out to and been unsuccessful with some of the recommended lenders mentioned in the forum threads such as Wells Fargo, TD Bank, and Navy Federal.

Wells Fargo- Representative said I am not eligible because the ELOC is only available for 5+ units.

TD Bank- The property address may be outside the investment footprint. The application and documents have to be filled out in person. I'm currently, not able to comply due to being stationed in Georgia at the moment.

Navy Federal-Reaching someone in the business department to actually answer the question is a challenge in itself.

Any advice, resources, or recommendations would be greatly appreciated.

We need some assistance finishing up a rehab that was started on a 2BR, 1 Bath unit. We hope to get the property up to code and rented as soon as possible. Any referrals for any reasonable local professionals would be awesome. The property is in Newport News, VA 23608.

Hey Solomon, I'm currently in Newport News. Williamsburg is in my local area. The best solution is going to depend on what you are trying to achieve. A few suggestions for you to consider:

1. If the property is part of an association, maybe see if the association will cover any of the repairs. It may save you a few thousand. 

2. Buckle down and ride the wave of the property is not performing as desired. You can keep it in your portfolio and acquire a few more to maybe offset your losses. I heard this on a podcast and is something to consider if you are playing the long game. 

3. Sell it to another investor as is. If there is value in the deal for them they will be willing to pay for the repairs. 

4. Borrow money from friends, family, or private investor to cover the repairs. 

5. Take a secured loan against a vehicle that is paid off. I came across a bank that lends up to 130% of the Kelly Blue Book value (credit score dependent of course). 

6. During your next tenant changeover you can maybe do a lease option to buy and include maintenance and repairs in the lease so your tenant will be responsible. Consult a real estate attorney first of course. 

I hope this helps. 

Looking for a reasonable and honest plumber in the Newport News, Virginia area.

Are you looking for a specific criteria for those multis? I have been researching these in this area for the past year. I may be able to help.

@Cedric Mitchell, congratulations man. I wish you continued success in the future as well. 

@ Rony Mueller, after about  year of absorbing as much of Biggerpockets as possible my criteria were owner financed, multifamily, tenants in place, and income producing of course.

I was actively seeking owner financed deals after reading Brandon's book on How to Invest with no or little money down. I felt like owner financing would be the easiest way for me to land my first deal.

Multifamily because I believed at least one unit would be always be occupied. You will always have turnover but with multifamily as long as you can keep enough units full to cover the mortgage payment you can stay above water. Multifamily also gives you the option to just move in, if you ever need to. I figured if things were to get bad, if absolutely necessary I could move into one of the units and rent out my house to help pay the mortgage.

Having lenders in place and actual proof that you can provide to a lender weighs in heavily when your application goes to underwriting. My lender was actually excited when they say that the property had 3 units and they were all occupied. It's a win-win for both myself and the bank.

Income producing is a no brainer. From scouring posts on BP some investors shoot for at least $100-$200 cash flow per month per property. Being new, I aimed for at least $500 per month to give myself more room to make mistakes. Brandon and other investors always bring up the importance of getting your calculations and investment criteria right and if the deal doesn't meet your criteria, just walk away with no emotional attachment at all. During the closing, I almost walked away from the deal twice. Once when the seller informed my realtor that the rent for one unit was improperly listed on Zillow at $75 dollars higher than what it actually was. The second time, the seller informed me that not all of the utilities were paid for by the tenants which was originally told to me from my realtor when he showed the place. Needless to say, my realtor got an earful from me for not having all of the facts straight. Turns out, it wasn't his fault because he was misled by the seller. My realtor represented both the seller and myself during the transaction. Overall, I made sure my numbers fit with all of the properties I looked at. With every change brought up during closing, I revisited my numbers before deciding to proceed with the closing. If your numbers don't fit with the deal, just walk away with no emotional attachment at all. There will always be another deal out there in my opinion. Sometimes, an even better deal than the first one.

It was an MLS deal that was listed for a few months. What attracted me was the seller was offering owner financing. I made an offer and then after consulting with his attorney he backed out of the seller financing deal. I saw the value in the deal and didn't want to miss the opportunity so I ended up getting a commercial loan to my corporation. It ended up being a much better deal for me in the long run. I went through Navy Federal Business Services.