Investor · Leesburg, GA · Member since 2016 · 105 posts · 23 votes
So I have a community bank that will give me a 10 year mortgage at 5%. The only thing about that I can't find a property that fits my criteria of $100 a door or 11% COCROI. I don't plan on drawing any money out anytime soon. So I wanted to know if I'm paying off properties in 10 years or less is it ok to get low ROI(s). Hereisthe deal link.
Real Estate Investor · Ogden, UT · Member since 2014 · 160 posts · 81 votes
9y
We have learned to keep asking banks until you find one that works the way you need it to, and also to go back ans ask again after a few months as banks are always changing their "rules" and requirements. We have had to call lots of banks to find the right fit many times for our deals ! They ARE out there ! Keep calling. We prefer smaller community banks and credit unions.
Investor · Leesburg, GA · Member since 2016 · 105 posts · 23 votes
9y
I have been to several banks and the credit unions around me advised they don't lend on rental properties. That's not to say that I have given up. I just found this one and settled. The niche I'm in is $30K houses. The area I'm in has some great deals at this price level. I know the whole argument against it, but if you look at the link the house looks great and its in a work class neighborhood. All the banks I talk to don't want to lend on nothing under $50K unless its an in-house loan and with them, no one wants to over 10 years. I thought about Visio, but they only do like 7 years. I will figure something out, but my main question. If it is cashflowing at a 30 year mortgage if I do a 10 year mortgage is it necessarily a bad investment. I know the millionaire investor talked about shorter terms in his book. So you can have 100% of the profits quicker. My small town in Georgia has pockets in it. Plus I like the Clay Morris of Morrisinvest.com model.