Several "no"s...The "yes"s should be coming...right?

Several "no"s...The "yes"s should be coming...right?

Rental Property Investor · St. Louis, MO · Member since 2016 · 199 posts · 22 votes

I've been trying to fund a small buy and hold project, with my newly formed LLC. I've had a ton of no's. Big banks won't touch it, small banks where I am won't fund a project out of state, the local banks in the investing area won't do it (I assume because I don't have the relationship with them, that I'm not able to do because I'm not in that area to meet them in person), seller isn't in a position to carry the note..

I know I'm not out of options and I haven't asked everyone and every place that I can, but I've asked a lot. In this business persistence pays off, so I'm hoping to share a success story with you soon.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

Tyson... you need to get a reality check.. no bank is going to do a loan without A PG.. unless its a multi million dollar loan to a very sophisticated investor.. all of us ( myself included) have to PG.. simple as that. if you don't qualify or are not willing then your wasting your time.. No one is going to do this.

Even HML require PG ,, I know when I had my HML shop I required it.. and when I have borrowed from other HML to soft money lenders I PG.. that's reality.

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  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    9y
    Originally posted by @Troy Hebert:
    Originally posted by @Brie Schmidt:

    Is the personal guarantee you're mentioning a PG or where the bank is underwriting your personal assets as opposed to the property itself?

     Yes, I only own a few million dollars of property and I have yet to find a bank that is willing to loan without a PG, so my assets and income are always part of the consideration

    @Tyson Hosey - it isn't really that big of a deal.  One of the factors a bank has with lending decisions is the person's ability to run a business.  So if they ask me for a rent roll, or YTD P&L, tax documents, ect... I can produce those documents within 48 hours, so it gives them more and more confidence when working with me

  • Rental Property Investor · St. Louis, MO · Member since 2016 · 199 posts · 22 votes
    9y

    @Brie Schmidt That's what I'm working towards. I have a current property that is rented has great cash flow, and I've made spreadsheets with that information. I'm concerned that it really isn't all that great because it's just one property. Am I just underestimating it? Should I just keep that spreadsheet going so that I'm running it as if I have a million dollars worth of property?

  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    9y

    @Tyson Hosey - keep it going.  They want to see that this is a business and that you are organized.  

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