$1M+ Cash Out Refi - 80% LTV - No Syndication
Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes$1M+ Cash Out Refi - 80% LTV - No Syndication
Most Popular Reply
Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votesQuote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?
@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
I have more properties, just don't intend to re-finance or re-structure like this.
Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results.
He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?
Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure. And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling.
I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property. Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes.
You mentioned you would rather own the debt at 6.69…..
If you like making first position Loans in Texas, I know someone that should be a good fit for that. 😉😉
22 Replies
- 1yPat LulewiczBusiness MemberRealtor · Raleigh NC and Greensboro, NC · Member since 2019 · 391 posts · 392 votes
Love to see this, especially reviving properties and communities. Perfect example of how RE is the get rich slow method, and not what everyone sells in their courses. Do you know what % of his total invested capital that $1.2M represented? Was it all of the capital he had "stuck" in the properties? 50%? 200%? I think that would also help show people the quantitative impact that patience can have.
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Pat Lulewicz:
Love to see this, especially reviving properties and communities. Perfect example of how RE is the get rich slow method, and not what everyone sells in their courses. Do you know what % of his total invested capital that $1.2M represented? Was it all of the capital he had "stuck" in the properties? 50%? 200%? I think that would also help show people the quantitative impact that patience can have.
Great question, @Pat Lulewicz, and that's not something I had even thought about calculating until now. So, I went back to the SREO (Schedule of Real Estate) that I created for him as his CFO and it's almost exactly 300%!
Keep in mind, this guy was doing HEAVY rehab on these urban SFRs - these were not for the faint of heart.
But on average, he was buying properties below $50k, putting at least $75k into the rehab, and then the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF.
He's got almost 50 properties now (~ 54 units) and he's a true BRRRR investor! In the last 5 years, he's only sold one because he got "an offer he couldn't refuse".
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ voteshow did you get a 1.10 DSCR ?? what was the interest rate ?
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Jay Hinrichs:
how did you get a 1.10 DSCR ?? what was the interest rate ?@Jay Hinrichs The interest rate was 6.69%. We got the 1.10x DSCR because the bank LOVED my client (they built a relationship over a couple of years with him) and then they did everything thing they could within their loan policy to support his efforts to revitalize various LMI neighborhoods in KC.
- 1yPat LulewiczBusiness MemberRealtor · Raleigh NC and Greensboro, NC · Member since 2019 · 391 posts · 392 votes
$75k rehab in Kansas/Missouri is serious work. That's amazing and shows the true power or REI and patience in the game. Even 100% over 7 years is life-changing money, but 300%...well done to y'all.
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Pat Lulewicz:
$75k rehab in Kansas/Missouri is serious work. That's amazing and shows the true power or REI and patience in the game. Even 100% over 7 years is life-changing money, but 300%...well done to y'all.
@Pat Lulewicz Yes, very serious work and many of his projects required nearly $100k in rehab. That 300% has been life-changing for him!
And for that client, and he is a very faith-driven developer, but one of his favorite sayings (and hashtags) is #TrustTheProcess!
Thanks for your comments and appreciating my client's hard work!
- 1yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
- 1yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votesDSCR before the re-financing.
Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact? - Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
- 1yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
- 1yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
I have more properties, just don't intend to re-finance or re-structure like this.
Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results.
He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?
Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure. And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling.
I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property. Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes.
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
I have more properties, just don't intend to re-finance or re-structure like this.
Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results.
He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?
Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure. And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling.
I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property. Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes.
@V.G Jason He actually had some with 4.50% rates, but that credit union stopped being active in the investment property lending space in his market AND they couldn't do a loan as big as he wanted. They were a good lender when he owned 10 properties but not 40.
For what it's worth, they may not have been in A class neighborhoods, but they were not "low grade" properties. Nearly all of them received C2 designations from the appraisers.
Reminds me of the saying my grandpa used to tell me, "One person's treasure is another person's trash"!
- 1yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
I have more properties, just don't intend to re-finance or re-structure like this.
Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results.
He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?
Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure. And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling.
I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property. Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes.
You mentioned you would rather own the debt at 6.69…..
If you like making first position Loans in Texas, I know someone that should be a good fit for that. 😉😉
- 1yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Joe S.:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
Quote from @Jaycee Greene:
Quote from @V.G Jason:
DSCR before the re-financing.Quote from @Jaycee Greene:
Quote from @V.G Jason:
What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?
What was the DSCR ratio before re-financing?
@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.
With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?
The 59% of value before the 40 properties, were how many properties of the 40 to be exact?@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%
22 properties (55% * 40)
I asked the same thing twice.
So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated.
What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?
@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.
For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.
What might help here is how he acquired/financed most of his deals.
On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.
Do you have similar properties that you're looking to refinance like this?
I have more properties, just don't intend to re-finance or re-structure like this.
Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results.
He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?
Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure. And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling.
I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property. Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes.
You mentioned you would rather own the debt at 6.69…..
If you like making first position Loans in Texas, I know someone that should be a good fit for that. 😉😉
Can find better in the private space without needing to take this massive risk that comes at the 12% route in an aggregate. Can find 12% at an individual deal level that's asset-backed, those I like. Very hard to find, but possible.
6.7% I would rather buy than re-lever in at 6.7%. But I am fortunate to have better choices.
- Member since 2022 · 119 posts · 52 votes1y
What bank is this? Great success story congrats to you and your client !
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Amby Bhagtani:
What bank is this? Great success story congrats to you and your client !
@Amby Bhagtani UMB Bank
- 1yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Quote from @Jaycee Greene:
Bundling 40+ SFRs into a $1M+ Cash Out Refi, 80% LTV Portfolio DSCR
📈 This is what happens when strategy, trust, and clean execution line up
🧱Over 7 years, my client built a 40-unit rental portfolio - one property at a time - in a Midwestern city’s overlooked neighborhoods
🛠️No hype. No flipping. No outside capital. Just patient acquisitions, high-quality rehabs, and a focus on the long term
🏘️Some buildings were nearly condemned, but he resurrected them to “C2” status and received praise from city inspectors
📅In late 2024, that diligence paid off - we closed a $5.6M refinance with $1.2M cash out at 80% LTV and a 1.10x NOI DSCR
🏦From one of the city’s most conservative banks, but it didn’t happen overnight. The bank followed his work for years—small loans, relationship-building, and trust earned through numbers.
⚡That refinance unlocked a new chapter: he’s now eyeing larger projects, but remains anchored in the same communities
🚨Takeaway: If the numbers are right and the story is strong, even the most conservative lenders will support you! If you know of a similar developer, please share their story here!
Couple of questions come to mind..
1. You said a client of yours, but then you mention that another bank that was local that he built relationship with did the refinance.
2. If it was a blanket loan wouldn’t it encumber all of his properties and make it difficult for him to ever sell one or two at a time if ever desired?
3. You mentioned you was his CFO so exactly how is your relationship with him structured so we can better understand the story and possibly even get you more clients? :)
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Joe S.:
Quote from @Jaycee Greene:
Bundling 40+ SFRs into a $1M+ Cash Out Refi, 80% LTV Portfolio DSCR
📈 This is what happens when strategy, trust, and clean execution line up
🧱Over 7 years, my client built a 40-unit rental portfolio - one property at a time - in a Midwestern city’s overlooked neighborhoods
🛠️No hype. No flipping. No outside capital. Just patient acquisitions, high-quality rehabs, and a focus on the long term
🏘️Some buildings were nearly condemned, but he resurrected them to “C2” status and received praise from city inspectors
📅In late 2024, that diligence paid off - we closed a $5.6M refinance with $1.2M cash out at 80% LTV and a 1.10x NOI DSCR
🏦From one of the city’s most conservative banks, but it didn’t happen overnight. The bank followed his work for years—small loans, relationship-building, and trust earned through numbers.
⚡That refinance unlocked a new chapter: he’s now eyeing larger projects, but remains anchored in the same communities
🚨Takeaway: If the numbers are right and the story is strong, even the most conservative lenders will support you! If you know of a similar developer, please share their story here!
Couple of questions come to mind..
1. You said a client of yours, but then you mention that another bank that was local that he built relationship with did the refinance.
2. If it was a blanket loan wouldn’t it encumber all of his properties and make it difficult for him to ever sell one or two at a time if ever desired?
3. You mentioned you was his CFO so exactly how is your relationship with him structured so we can better understand the story and possibly even get you more clients? :)
@Joe S. Thanks so much for your questions and here are my answers in bold.
1. You said a client of yours, but then you mention that another bank that was local that he built relationship with did the refinance.
Very perceptive! My client and I developed parallel relationships with this bank (UMB Bank), along with some others in the market. He tends to work with the more Senior Managers/EVPs, where I generally work with the Bankers/Relationship Managers.
2. If it was a blanket loan wouldn’t it encumber all of his properties and make it difficult for him to ever sell one or two at a time if ever desired?
It would, but my client does not plan to sell any of these properties over the next 5 years. But if he does sell one, he has other properties he could "swap" in to replace any being sold.
3. You mentioned you was his CFO so exactly how is your relationship with him structured so we can better understand the story and possibly even get you more clients? :)
I've worked as his Fractional CFO for 2.5 years (I've known him for 6 years) and I essentially operate as part of his management team (similar to his CPA/Accountant and Real Estate Attorney) where I handle any financial-related project, particularly those that are "forward looking".
I run his financial models/proformas, solicit loan requests on new projects, submit draw requests to lenders on existing projects, manage his Schedule of Real Estate Owned (SREO), interact with bankers/HMLs on his behalf, and assists him in analyzing potential acquisitions. I can also work with partners/JV investors, but he owns all but one of his properties 100%.
- 1yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Jaycee Greene Congrats, sounds like a good outcome but surprised the blanket loan doesn’t have release prices or the ability to accelerate down a portion of the loan with the sale or refi of individual properties. Perhaps I misunderstood your response to @Joe S. but having to bring new collateral to the table in order to sell/release properties is not ideal. You should clarify this with the lender. Seems very odd to have this term in the loan docs. Wouldn’t be surprised if more flexibility existed.
- Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes1y
Quote from @Stuart Udis:
@Jaycee Greene Congrats, sounds like a good outcome but surprised the blanket loan doesn’t have release prices or the ability to accelerate down a portion of the loan with the sale or refi of individual properties. Perhaps I misunderstood your response to @Joe S. but having to bring new collateral to the table in order to sell/release properties is not ideal. You should clarify this with the lender. Seems very odd to have this term in the loan docs. Wouldn’t be surprised if more flexibility existed.
@Stuart Udis Thanks. I should have added that new collateral would not be required if the LTV remains at or below 80% LTV or the bank would release a property for sale, but my client would need to paydown the loan at closing to maintain the LTV.
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