All Forum Posts by: Josh Sterling

Update...I've been calling every small bank I can find in the last couple days. I found a website that lists credit unions, but havent found a good way to find other small banks in the area. Are there any websites that list all banks in a given state by size?

And I have had zero luck on getting anyone interested in working with me. I'm up to 25+ attempts now. I must be approaching this wrong.
Here is my typical call:

"Hi, May I speak with your commercial lending department?"....if no commercial lending department... "Are you a portfolio lender?"

"Do you have products available for a cash out refinance of an investment property?"

"Our properties are owned free & clear and held in a LLC, we are interested in doing cash out refinances with a LTV of approximatley 60%."

Somewhere along the way I have lost every single one of them.

Any advice would be greatly appreciated.

Thanks
SR

When you say 75% LTV is that ARV?
If so,how are the banks willing to loan based on an estimated value?

Why do you need software for short sales?

I haven't been turned down like this since jr high...

Here are the numbers: We own 7 rentals, 5 of which are free & clear. Gross rental income is about $5300/mo with a net of about $3000/mo. We have W-2 income about 80k per year and we have 200k invested with a financial advisor. Credit scores of 710-740.

Why the heck can't we pull money out of any of these free and clear properties. I have been turned down by at least 5 banks in the past 2 weeks, mostly because the properties are in an LLC. Sometimes they wont even talk to me after they hear investment property. I am trying to talk to small banks but it doesnt seem to matter.

The LLC seems to be the biggest problem, is anyone getting financing from properties within an LLC?

Anyone know of a good bank to work with in Southeast Michigan?

Thanks,
SR

We are only purchasing properties in the 20-35k range so it is a little easier to come up with the money. We basically used whatever spare cash we could scrape up and put it towards the property. We even bought one using 0% apr balance transfer credit cards and then paid it off before the promo terms ended.(risky I know) The properties cash-flow nicely so that helps add to the funds to buy the next.
5 yrs ago when I made no money, I could get a stated income loan on a personal residence for 10x this amount, and now I can't even get a loan for 30k on a property that will make me several hundred dollars a month.

Sounds like the commercial loan department is the way to go. Did you guys just walk in and try to explain you plan to every small bank in town?

Also, Jay
I noticed you are in Ohio. Do you know if the bank you use does loans in MI too?

Hi All,
New to this forum, but there seems to be a lot of great info on here, just what I've been looking for.

I've been investing in real estate for about 2 years now. I formed a LLC and we are up to 7 properties in Southeast Michigan. Along the way we've been able to get creative and scrape together cash, and we own 5 of the properties free & clear.
The problem I run into every time I try to grow the business is financing. I thought it would get easier as I got more experience and owned more property free and clear but I continue to get shot down by every bank in the state.

Our typical deals(and there are lots of opportunities) are along these lines:

Purchase.....25-30k
Rehab.........10k
Rent............800-900/month
Taxes..........150/month
Insurance.....50/month

I've tried to do cash out refis on the free and clear property (because its so much easier to make offers when its all cash) but I have been unsuccessful. I have been turned down for:
-Too high DTI (disallowed much of the rental income)
-Lack of seasoning on the properties
-Too small of loan amounts
-Properties held in an LLC
-No cash out refis on investment property

We have good credit and good reserves (investment accounts)

Am I approaching this wrong by trying to do cash out Refis?
Is there an easier way to secure financing for the next deal that I am just not seeing?

I welcome any suggestions.

Thank You