All Forum Posts by: Ryan Rudy

@Account Closed that all makes sense.  I think with the cash offer and the speed of closing should allow us to have a small advantage.  Anything helps at this point.  Thanks!

@Will Gaston thanks for the feedback! I would have to think the more options a buyer has the better off they are. Apparently it is pretty difficult to obtain a LOC for REI. We are hoping that this bank can come through for us!

@Mark H. Porter they definitely are.  We are looking to have the most flexibility when purchasing property.  I think @Will Fraser had an excellent point that the biggest benefit from a cash purchase may be the speed of the transaction over the potential discount.  Thanks!

@Cody Barna yes we are looking for SFH or duplex to start. We know the market is crazy right now and people may not be in a hurry. We are working on being able to have options as a buyer. We would be targeting the houses that have been on the market for a longer period of time than their comps and determine why and if it is worth purchasing. Thank you for the feedback.

@Will Fraser that is an excellent point.  We absolutely love the calculators that BP provide and plan to use them for any and all deals that we are looking at.  We find that it takes out the "emotional" response to a property.  

We will be pursuing rental properties while using the BRRRR method. So the property will eventually need to appraise for a substantial amount for the refinance.

I did not consider the speed of the transaction to be a sticking point, so thank you very much!

We are just starting out in the REI game in Central PA and we have a business plan meeting with a local bank to discuss an unsecured LOC over traditional financing. We want to drive home the fact that cash purchases give us more buying power in the market.

On average what would be the savings/discount when a property is purchased with cash?

I know it varies per state/market but we are just trying to find some type of figure that we could use.  Thanks in advance!

@Ned Carey awesome!  One thing I do know is that options are ALWAYS a good thing.  We will keep you updated on the meetings.  Thanks again for all of the feedback and experiences.

@Ned Carey the two LLC option is definitely something that Megan and I will be taking a look at. You have given us a lot of good information and we really appreciate it.

We have two calls tomorrow with another two banks to see what they are able to offer.  I believe it is a preliminary meeting.  So we will be asking a lot of questions and hopefully getting some answers to what the typical financing options are for LLCs.

Thank you @Ned Carey! I really appreciate the feedback. We will have to look into doing 5-10 properties for each LLC. That would save a lot of time and preparation. Do you segregate properties according to location? Order of how they were purchased? Quality?

I think the bank we are meeting with understands that we want the LLC to hold the property. They did mention that we may need to be personally liable for the first mortgage to make sure that we are competent at our business plan. They also mentioned their main priority is the cash flow of the property. Which the Rental Property Calculator is amazing to show the breakdown for an example. We are going to "go all out" to try and obtain the LOC to make purchasing/rehabbing more efficient and quicker.

We were also told this local bank is more risk "tolerant" and are looking to grow in the area.  So we are going to do our best to show them that we can apart of that.

Thank you @Ned Carey!

Our plan was to have an LLC hold the property and our business plan definitely outlines that topic. From our research we have determined it is best to have an LLC per property to limit liability as well as preventing a domino effect if something would happen. Is that true from your experience?

As for the loan, if we obtain a personal unsecured LOC we would not be able to use it for the purchase and refinance of the property? We are planning to utilize the BRRRR method and use the LOC to purchase/rehab the property before refinancing into a long term loan. Is that possible? Sorry for all of the questions, we are just trying to get everything ironed out before the meeting. Thank you in advance!