All Forum Posts by: Sanat Bhandari

Does anyone have a recommendation for an investor-friendly bank(s) in Burlington? I own a couple rentals in the area that I am looking to refinance. Bonus points if they could set me up with a LOC!

I have some banking contacts in Ottumwa but they aren't interested in financing that far away. TIA!

Address: 110 Highland Dr, Burkburnett, TX - 76354
Bedrooms: 3
Bath: 1.5

Sq. Ft: 1,404
Lot Size: 8,102 s/f
Rental Value: $1,250/mo
Property Taxes: $1,524 /yr from 2022

Occupancy: Vacant

Listed Price: $105,000
After Repair Value (ARV): $175,000 (the layout of this property is more desirable than the comp)

Title Company: Stewart Title

Closing Date: 09/08/2023

Comps:

992 Victoria Dr, Burkburnett, TX 76354 (3bd 2ba, $182,696, sold in July ’23)

1016 Bishop Rd, Burkburnett, TX 76354 (3bd 1ba, $212,538, sold in March ’23)

3 Cathryn Rd, Burkburnett, TX 76354 (3bd 2ba, $175,000, sold in March ’23)

Link: https://drive.google.com/drive/folders/1zI8tl8qsA-0skIx08ZTjE-WbiaDVi8LY?usp=drive_link

Notes: Property is in decent shape and doesn’t need a whole lot of updates other than cosmetic ones and new fence. Plenty of activity going on in this town with average DOM being 30 days. Looking to get this closed within a week or so!

Address: 219 E C Ave, Waurika, OK - 73573

Bedroom: 3

Bathroom: 1

Property Taxes: $586/yr

Rental Value: $700/mo

Asking: $47,000

ARV: $85,000 - $90,000 per the local realtors

Drive link: Click here

Comps:

420 E D Ave, Waurika, OK (3bd, 1ba, sold for $90,000 in 04/03/2023)

802 NE 8th St, Waurika, OK (3bd, 2ba, sold for $105,000 in 08/04/2023)

Notes: Never had any issues with any electrical/AC/plumbing. The property has been sitting vacant for about a month. The current owners were going to fix the hardwood floors and restain it. The sunroom addition has small leaks. Doesn't need anything besides that

** THIS IS AN ASSIGNMENT OF CONTRACT. WE ARE NOT REAL ESTATE AGENTS AND DO NOT REPRESENT OURSELVES AS SUCH **

@Jay Hinrichs DSCRs are generally 20% down on purchase (used to be 15%, not as common anymore unless you're ready to sign up for atrocious terms)

Unless $6,000 is maxing out your personal credit, it shouldn't be that low. Maybe there's some past issues that are dinging credit 

@Account Closed If you're financing, not buying, under an LLC, then all the members with >20% equity would need to PG the loan

The best way to ensure all will be equal partners is to have equivalent ownership in the entity and share the burden of all the risks together. Not an attorney so make sure to get legal advice on this matter

Get a commercial loan (like DSCR) so all members can share equal responsibility since you can close in an LLC. Standard residential mortgages don't allow closings in LLCs so one of you would have to be primarily on the line

@Jeff Puciato HELOC or LOC and then an eventual refinance into a consolidated mortgage would be the best course of action here

@Syreeta McDonald There's no limit on DSCR loans as others have mentioned here. Just keep in mind that DSCR is expensive money with prepayment penalties and origination points

Feel free to PM for more info

@Terje Sagen Banks are a third-party in seller financed transactions and have no say in how theyr'e structured

Negotiate with the seller to get favorable terms since 70% down is fairly absurd, at least in the US

@Jonathan Gardner You could get a hard money loan from a local lender to purchase the property cash, then refinance out with a lender once you pay off your credit cards to bring your credit score up (you need >620 to do DSCR's, you're not that far off from that number). Your timeline will likely be in the 30-60 day range

@Nicholas Devlin There's a few lenders that can do loans that small but the terms may not be as favorable. Feel free to PM for more information