Hi. My son and I started investing in real estate in 08 in the Charlotte, NC area. We have been learning the ins and outs of buy & hold, with a few residential properties. We have flipped a couple but those were more along the lines of an opportunity presented itself rather than planned and deliberate flips. We are now at the point of wanting to grow the business. We want to continue to grow our portfolio of rentals and also move into the flip market. So we are looking for advice on how to go from where we are now, holding a limited number of mortgages in my name, and moving into the world of having ready access to funding options. So here are some questions I have. And please feel free to offer up any other advice you may have.
What banks or other lenders are there that would refinance all of our mortgages into a single loan in the name of our LLC. Once refinanced we would want to establish a revolving line of credit based on the equity. Our thought is we would use the line of credit to buy and rehab both the buy & holds and the flips. We would then want to roll the buy & holds back into the single mortgage, and thereby freeing up the line of credit again.
Now for ideas on what folks feel is an acceptable cap rate. I've done some research and 10% seems to be a common answer. Is this reasonable? What are lenders looking for?
what are some good ways to network in the Charlotte area? We belong to MetrolinaREIA.
Eventually we want to expand our buy and holds from 2-4 family units to small apartment complexes. Not sure where to find those. And for that matter I would really appreciate any connections with realtors who specialize in working with investors as well as contacts will wholesalers.
Thanks in advance for your thoughts, advice and ideas.
Hey Jim -- It sounds like you have a pretty solid strategy. I am not sure I know of any local lenders that would be willing to do what you're looking for. However, I am sure it exists somewhere in Charlotte.
If you ever want to connect and exchange notes, feel free to shoot me a message directly.
Hey @Jim Kalish ,
I like your model, its very much what we are trying to do west of Charlotte. I have had some good initial success in calling up smaller banks in Gastonia/Charlotte inquiring about portfolio lending and lines of credit. Suggest you start there and maybe you will find what you are looking for.
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