All Forum Posts by: Stan Hill

Thank you Michael! I did talk to at least 4-5 local banks, but did not try a credit union. I will see if any even hint at being a little creative and give a few a shot.

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@Jon Klaus

These properties are paid for in full. As cash out refis would probably be a good option, it's a bit frustrating to think I put myself at a disadvantage by paying cash. And actually, that is an area I have been reading about and learning here on BP and other sources. With the cost of money being relatively cheap, I will likely be better off doing the traditional 20-30% down on our next venture.

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@Will Pritchett

Woo hoo! Thanks!

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Originally posted by @Mike H.:

I have one quick question and then a suggestion.
Question) Does it have to be a HELOC? What about just doing a refi on these 3 properties and pulling the money out?

Comment) If you want it to be a HELOC, one thing you might want to do is find a local bank that does portfolio loans and see if they'll do an LOC on the equity. They'll only likely go up to 70% LTV. And their rate will probably be in the 5 to 5.5% range.

But I think that would be one option that might allow you to do one LOC on the 3 properties.

My guess is they still might ask you to do a blanket loan on the 3 properties for say, 50% LTV so they could all be tied together and then do the LOC on the remaining 20% of the equity.

Again, I would just do a cash out refi and pull your money out and not bother with trying to do the LOC. I think that would be the easiest path to take. But if you do need it to be an LOC, I would try looking at local banks that do portfolio loans and possibly blanket loans. If they do, they might do an LOC on the 3 houses as a group.

But I will say that Texas seems to be one of the MOST investor friendly states in the country in terms of financing. So if there is one state out there that could let you do something like this, I think Texas is probably my first vote for being able to pull it off.

G/L

Thanks Mike! The properties are paid off. That's the really frustrating part. I have both knowingly and unknowingly put myself into this position. We considered financing the first two properties. With fees generally $2,000 or more (I want to say we got GFEs at around $2,500 in lender fees), it didn't make sense to us to pay what we perceived as an additional 4%+ for these properties. We paid $47.5K for two, and $44K for the other. As most fees are fixed, it just seemed to not make sense on such a small loan size.

And in reality, we're really talking a simple LOC as these are not owner-occupied. I have tried at least 4-5 local banks. Being owned by an LLC seems to be the catch-all.

Thanks for the insight. I am really impressed by the info I've been getting here from the various resources.

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Oh and can anyone help with an easy item? I see the blue @name a lot. I have tried to do it, doing the quote then deleting everything but the blue thingies, but it doesn't work. I tried to do a search for it, but couldn't find anything. Any help would be appreciated.

Oh and even though I can't figure out the blue thingy, I really am reasonably intelligent. Honest! ;)

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@Richelle T.:

Thanks Richelle! I will give them a try. So far, the problem has been that these properties are owned by an LLC. But we shall see. I love that rate anyway. We do have our home paid off, value about $190K. That would put about $150K available, and most rates I've been seeing for HELOCs are in the mid-3s. Even if they don't do it on the investment property, I'll give them a holler if I can ever get the real boss (insert wicked grin here) to go along with tapping the home for investments.

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@Derrick Craig:

Thanks Derrick. It must be a Texas thing, I tried them and they can't do it. Apparently we have some unique regulations here, I have run into this on other issues like cash out refis when I sold loans a decade ago. Thanks for the help!

For anyone else that is interested, I called at least 5 banks in Texas, most of them local. None will do a LOC for investment properties held in an LLC. The best deal I found was a private lender at 2 points in, 1 point out, 10% and they want to handle escrows. He is willing to go to $115K on 3 properties with est. value of $150 - $160K.

It appears this is one of the pitfalls of a self-directed IRA in Texas.

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@Phillip Williams

Thanks for sharing your story- especially the multifamily stuff. I have a house and two condos rented out now, and want multifamily to be my next move. Thanks again and great job!

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Originally posted by @Brian Nalley:

Sparkrent is owned Intuit--not really fly-by-night.

My question is, what if your tenant does not have a bank account (uses cash or money order)? There a way to use this still?

I have two older tenants that have been in place 7 and 9 years respectively. They send their money orders on time. I have no idea how they handle their finances other than the money orders they send me. I figure why try and talk people in their 60s and 70s out of what they've been doing and doing reliably and into trusting an electronic transfer. Or maybe I'm just a big softy.

I guess the point I'm making is there are exceptions to every rule.

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NO NO NO NO NO NO NO

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All Forum Posts by: Stan Hill

Stan Hill has started 6 posts and replied 180 times.

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: HELOC on multiple properties?

Post: 7 buildings 20 units 18 months thanks to BiggerPockets

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