Rental Property Investor · Charlotte, NC · Member since 2016 · 21 posts · 2 votes
Good afternoon BP Community! I am looking to partner with a private lender that would be interested in holding a note on a couple rental properties in the Charlotte, NC area. Both properties are single family rentals that are in good shape, occupied and managed by a PM. I am looking to pull out approx $40k-$50K on each property ($80k-100K total) with an LTV in the 65-80% range.
Feel free to PM me for additional details on the houses, investment experience, etc. I am open to all types of financing options and happy to get creative. Thanks for the help!
Rental Property Investor · Lindon, UT · Member since 2015 · 862 posts · 438 votes
10y
When you say "pull out" cash, I imagine you already own these properties free and clear and the partner is going to create a note for you to be able to pull your cash out? Just helping others clarify first what it is you are hoping to accomplish by understanding your history with these properties.
Rental Property Investor · Charlotte, NC · Member since 2016 · 21 posts · 2 votes
10y
@Darren Eady - Yes, the properties are owned free and clear and I would be looking to create a note on each property in order to pull cash out of them. Both properties are fairly recent purchases; purchased about 90 days ago at the time of this post. Thanks!
Rental Property Investor · Charlotte, NC · Member since 2016 · 21 posts · 2 votes
10y
@Percy N. - I have spoke with several Banks and the biggest issue I have run into is that several of them have a minimum loan amount (usually $50K), and they are usually looking for an LTV of 75%, which is not a big issue unless the appraised value comes in below $65k-$70K. I think they are realistically worth about $60K each. So I am in a situation where I spend the money on the application and appraisal, and they decide not to originate the loan because it doesn't meet the minimum loan requirement.
I would be looking to pay 0.5%-1.0% in origination fees with a rate of 4.5%-5.5% with a 30yr am. I don't mind if there is a balloon (3-5yrs). Thanks!
Mishawaka, IN · Member since 2016 · 25 posts · 6 votes
10y
I'm still new to investing but have you considered a portfolio/blanket loan? Sounds like that might work for you by using the equity in the properties you have as leverage on the properties you wish to acquire. Although if you can find private money that is great too.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
10y
Hey @Paul Pessina, good to see you on bigger pockets. PM me when you have time, or text me if you still have my number. Happy to discuss, as I've done these types of loans before. However, the rates you mentioned are more like bank rates, and I can not compete with those low rates.