Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
I have been finding SFH at auction in WV for 25 to 50k with approximately 25 to 50k or more equity that also rent for $800 or more. These easily meet and exceed the 1 % rule. I have been able to refinance, rent and start over; however, the process takes time per home, approximately 3 to 5 months. It would be nice to have financing in place to by multiple homes at one time.
I have been looking at the possibility of using refinance proceeds as down payments and going to PML for new purchases, so I can stretch my refinance Dollars further. Selling off some of your portfolio is also an option, as is partnering with other investors.
I have found a company that offers a blanket 1.5 million line of credit for $7,500 fee; however, they only finance for 1 year and want an appraisal and loan similar to a PML, apparently their line of credit does not show up on your credit score and would help to continue to refinance with local banks.
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Joe Pitrolo $7,500 fee seems incredibly high. I've looked into lines of credit as well. The average fee I'm seeing for $1.25M is $750-850. What are your thoughts with the refi environment going into the next few months?
Investor · Morgantown, WV · Member since 2008 · 207 posts · 33 votes
6y
This is with MidWest Corporate Credit and is based on my retirement account, IRAs. It loans like a HML, 10 % down and so much on rehab up to 75 or 80% of ARV, appraisal needed, 10% monthly interest for 1 year and must be refinanced by then. Advantage is that I don't have 1 million equity and apparently in won't report to my individual credit. They also specialize in Business Corporate Credit. The disadvantage is that you need an appraisal for each property, which may slow things down. Are your lines of credit business credit of Helocs?
I think its a great time to refinance and the market is strong; however, working from home and social isolation may slow things down and people may be in a holding pattern to see what will happen. I'll check your podcast out, you have had some great success in what I've been pursuing.