All Forum Posts by: Troy Zimmerman

I'd like to see the pictures as well.  Please send them my way!  Thanks

Russell,

Would you be excited if a bank would only loan you 68% of what your investment was worth?  I've had a great experience with this lender on other deals, and I'm more curious to see if others have had a similar experience.  

Believe me, I understand this is a GOOD problem to have.  And in no way am I ungrateful for the relationship I have with this lender, but this is business, and I want to make the best decision possible.  Thanks guys.

Brent,

That's correct.  I was expecting 75% on 290, which is a loan of 217,500 (very close to what they are willing to loan now).  It's not so much that I need a loan for more, it's the principal that the bank will not loan 75% of the appraisal.  In fact, they aren't even willing to loan 70%, and no, I'm sure closing costs would still be required on my end.  

This was an appraiser they were comfortable with and had dealt with in the past BTW.  

So, while you are correct the loan amount wasn't far off from what I was expecting, I now feel like I should be able to pull more equity and deploy somewhere else based on their appraisal.  Make sense?  

I'm trying to be happy???

$100 isn't much if you haven't yet included maintenance and vacancy rate.  Just make sure you have reserves if something goes bad!

Hey guys,

I'm working with a new lender here in SC.  I bought a rental for 237 and have about 260 in after renovations.  I expected the appraisal to come back in the 290 range.  It just came back at 320!  I'm thrilled on one hand, but now the bank says they are only willing to lend 220 (68.75%).  They say the regulators would give them a hard time if they approved a loan that was higher than the original purchase price.  I've never run into this with my lender back in IL.  Any thoughts?

I have no desire to flip this property and would like to rent it long term.  Just curious if anyone else has run into this.  The easiest solution might just be to find another lender, but I'm down the road a bit with these guys.  

David

Also, always make sure to check the county website for tax info.  SC has a homestead exemption.  It sounds like this doesn't apply to the property since it has previously been used as a rental, but always verify!

Welcome to BP!

Seems like a fairly short payoff.  Wait three years and you will have roughly the same amount to go and find the next deal.  Although the cap rate isn't outstanding, have you considered leveraging the current property?  Interest rates are low, and this might give you the best of both worlds.  You could potentially keep your property and find a new deal that cashflows a little better.  Best of luck!

Hey everyone - good to be here.  I'm new to the Charleston SC market, I'm looking for solid rentals for long term buy and hold deals.