All Forum Posts by: Account Closed

I have a project in Chicago that is a 3 flat the I just finished gut rehabbing and it now has tenants in all units. My total cost with holding and construction was $925,000 roughly and I am getting a loan to refinance my HML of $640,000.

However, my initial capital raise was only $187,500 and the overages of approximately $170,000 have been put on personal credit cards and I need to find a way to refinance those at something more sustainable. I need something somewhat short term until the rents have been seasoned for 3-6 months so I can do a final cash out refinance. Is anyone aware of any firms or anything that will provide a 2nd mortgage up to let's say 80% LTV and 85% of total cost?

Thanks,

Zach

I am a lender at a smaller community real estate bank and an investor on the side as well.  What I have found is that Chase and the bigger banks are nice when you are starting out, because they are convenient.  

However, as you grow and add more properties, it becomes much more cumbersome to use a larger bank, because you are only a name on a computer screen and they really cannot offer any deals on account fees and other cash management tools you might need.

The smaller community banks will work with you to customize your banking account packages to make sure it works specifically for you.  They have the ability to waive fees, give you check scanners and everyone usually has Zelle or a similar system at this point.

The other benefit is that if you are a real estate investor and looking to grow, the smaller banks will be WAY more willing to lend you money to buy more buildings and grow your portfolio.  Chase won't do that, or if they do, it's a huge pain in the butt.

If I have a customer who holds their property management accounts and business accounts with me at the bank, I always do what I can to make sure they are taken care of on the lending side as well.

It's a relationship, like old school banking, much better to do business with.  Hopefully that helps.

Message me with any other questions!  

I will direct message it to you.

Are there any investors on BP who are interested in invested or already have processes in place to own and rent out single family properties and duplexes in the more "difficult" neighborhoods of Milwaukee?  I have a portfolio of turnkey properties with management that I think might be better suited for someone who is more experienced and has the infrastructure for the market.  I can post the actual opportunity in the Marketplace, but am not even sure if anyone has an appetite for this.

If there are any suggestions or companies that any readers know of who buys these types of properties, please reply here or send me a message.

They will get a decent return annually as well.

Thanks!

I am an investor on the side and also a commercial real estate investment lender with a community bank.  I've heard about the Chicagoland Apartment Association, but really have no idea the value that I might be able to get out of joining.  

Is anyone out there a member or attended the events etc?  Are they well attended and is it worth becoming a member?  I'd be looking as a Vendor first and an Owner secondary.

Thanks!

Sorry I wasn't able to make it last night, but would love to know when the next one is happening and meet the group!

I'm coming from the north suburbs, but look forward to hopefully meeting all of you!

Julie,

Do you lend on acquisition and rehab projects in Illinois?  Can you PM me?  I've got two deals under contract and I'd like to discuss your products!

Zach

The other option would be to move forward with the closing and try to evict the tenant myself, but I just don't think it's worth it.  Has anyone had success easily evicting a tenant quickly after closing?

Thanks for all of the comments and help.  Not sure what the seller's motivation is here, since we have really agreed on everything and have a cash offer.  Also, closing will prevent them from going into foreclosure and losing the house.  We shall see.