An upvote on my original post made 9 months back made me come back here. I wanted to add one more 'conventional' lender to the thread for individuals:
John Kotrides - Atlantic Bay Mortgage - 704.4613734
I just finished my 4th BRRR with him and got very competitive rates and superlative service. He actually helped me beat the first appraisal (appraisals working in your favor are a big part of BRRR) from a xenophobic appraiser(topic for another post - I am not Caucasian, neither are my renters) - the 1st appraiser appraised a 150K house for 105K, using 3 comps which were fixer-uppers and almost a year old. John lobbied with his bosses to get a 2nd appraisal done at his own cost which came much closer to the ARV.
Non-conventional lenders targeting LLCs/Inc's book Commercial Loans. My bank, First Citizens, makes those loans as soon as I have renters in place ~ 1 month. But the initial points and separate insurance company commercial premiums(3x) have always made me 'quit claim' title to my personal name, and wait 4.5 month before i mortgage-shop around to finish my BRRR. i know that needs to change after the 10th property...but i'm still 2 years out to that target. And at the 7th property mark, i will anyway go 'portfolio'. FACO has good program with low interest rates for that inflection point.
BTW, for those of you who are rolling your eyes at the suggestion of moving rental property from an LLC back to my personal name, my research tells me - liability protection for regular investors, thru' an LLC is overrated and over-priced. If you need proof, Just google some one like Clint Coons and talk to him and learn about his company's elaborate plan to keep the landlord safe. Looks good on paper, doesn't work in real life, and the yearly fees is mind-boggling. Then again, go back to google to see what I just said about fees vs. LLC protection not working and it has nothing to do with protecting the 'corporate veil' - (i know, topic for another post). Tort Liabilty is real guys and LLCs dont help. What helps is:
1. Primarily, take good care of your rental properties to avoid problems - physically change the air filter personally every 2-3 months and during that time inspect the property for water leaks, pests, damages, etc. Proactively fix problems, before they snowball.
2. Your renters are just ordinary folks like you and me. Treat them like you would want someone else to treat you.
3. Leave chocolate, or may be a champagne at the door during Christmas.
4. Pet their pets, compliment them on their decorating choices. "Tenant Painting wall" posts are overrated. Let them make your house their home - and stay longer(you would anyway repaint the whole house after long-term tenants leave)
5. Give them some rent credit if they took care of a problem on their own, especially on a Sunday. Toilet overflowing...pipes frozen, Circuit breaker tripped. its just not cost of physically getting their, time is money.
6. Screen your renters before giving them the keys. 1 to 5 will not work with not-normals, or as Stephen Colbert calls it -"deplorables"
If you liked this post, please up-vote so more people benefit. If you are in Charlotte and surrounding, I would love to buy you lunch and exchange ideas.
