All Forum Posts by: Alan Mills

@Steve Vaughan

Woa. Thanks for chiming in with all of your experience on these issues. This is a lot for me to unpack and I just. Really appreciate it!

@Joseph Cacciapaglia

Please look for my private message.

@Pete Storseth

@Patrick Menefee

Nice. I agree, I am working hard to quickly expand my relationships. There’s so many facets of the industry that create successes for so many people in so many ways. I appreciate your thoughts, and I will continue to try to find others to build win-win situations moving forward.

@Christopher Park

Thank you Christopher. Please look for my personal message as a follow up.

@James Wise

Excellent. Do you think I will be able to find conventional lenders with competitive fixed rates under the six-month seasoning requirement. I’ve only contacted about six conventional lenders thus far, but they all seem to be trained to tell me that I can’t do anything until I have had six months on title. I can keep reaching out, but it seems like it’s pretty rare to find one in Colorado.

@Whitney Hutten

Woa. Anyone who is stumbling across this post, please take the time to listen to Whitney’s podcast and read her articles. I just sent you a private message also Whitney. Wow.

@Joseph Cacciapaglia

Well stated on many points. I did have a lender set up who did confirm for me that he could get me 75% cash out refinance on the property prior to purchasing it. So I did check that box ahead of time. The question that this novice investor didn't know to ask what is the topic of this string: "S" = 6-month Seasoning. Alas, I know I will get this property rented quickly as rentals are in high demand in this market. So, worst case scenario is that I simply get the property rented and use the cash flow to sustain payments against my HELOC (The source of my cash funds for both purchase and rehab) for another 3 months until seasoning is complete, And then I start shopping around for a Fannie Mae or Freddie Mac conventional loan on the cash out refinance. I really appreciate your knowledge regarding that most people using theBRRRR strategy are using Hardmoney lenders for both a purchase and rehab costs. I didn't realize that that was the best way to go, but will certainly be looking to investigate those options on my next deal. Thank you for that!

@Pete Storseth

Yes, I have touched in with a couple of different Hard money lenders to see whether or not I want to do a bridge loan to get me past the six-month seasoning on title. I think that would certainly solve the problem, but I would also pay considerably for it, both in interest rate, and points. So the question remains, is it worth it?

@Kyle Altenau is also addressing this issue. I know things are complicated otherwise right now, but waiting an additional three months is a big deal when it comes to time and money and BRRRRing properties. waiting six months and doing two properties per year is much different than turning them around in three months and doing four properties per year.

It looks like you also answered the acronym question that I previously had: CO Inspection = Certificate of occupancy inspection? 😎

It does look like I missed the boat regarding using A hard money lender this time up. But being that I was able to complete the purchase and rehab is in cash, I think this may have been a wise route to go this time. But I do like the idea of considering hard money lender’s moving forward, and using cash to help get in the more properties faster. Thank you for that suggestion.

@Kyle Altenau

Thank you so much for the detailed response. This is extremely helpful information, and I particularly appreciate your suggestion of individual LLCs being owned by a larger umbrella LLC, that is then owned by you. wow.

I’m sure I will demonstrate my naïvety by asking, but what is a “CO inspection”?

You are right, that closings in the next 30 to 45 days might be impossible. It will be up to our local banks to provide notary service. I have used any number of them in the past, but I appreciate the heads up on this issue too.

I bought the property vacant, and the rehab for both units is it coming along nicely, yet there are clearly now delays in work by my contractor and subcontractors due to the virus. This was expected. I do feel confident that the property will be in excellent shape, and I will likely find tenants very quickly for both units. The inside will show like brand new 2020 properties.