All Forum Posts by: Allen L.

Hi,

I want to put a couple of rental properties that is currently owned under my sole member LLC into her name and then getting 30 year fixed conventional loan on them. These properties currently have 20 year commercial loans. If the LLC QCD them to her, does the 6 months seasoning on cash out refinance still apply? Would love to connect with a conventional lender that can work with this if no seasoning is required.

Hi guys,

I recently read that to satisfy SBA loans collateral, they are willing to take second position on equity from rental properties. Has anyone tried this and used it to buy "high success" franchises? 

Looking to speak to some people about executing this strategy. Seems like a business case to BRRR a lot of rentals and a way to "tap" into the equity portion.

I must have not communicated clearly. It's not worth my time to deal with the hassle of conventional loan anymore, so I don't even consider it as an option. That's also what the lender told me, it would take too long and thus make me as a buyer less competitive once we're in UW.

No and No. Also there is no restriction on acquiring conventional loan on primary residence even if you have maxed out on conventional loan for rentals. What is odd? Have you tried to apply for conventional mortgage when you have a lot of rentals? I maxed out my conventional rental loans when I had around 20 units, and that was basically hellish. 

Basically all rentals, even ones owned under LLC, come up during loan DD as long as you file them under one tax return as personal, that was what happened to me earlier.

Hi everyone,

Over the past six years, I’ve built a portfolio of 70+ properties, primarily single-family rentals. My wife and I are now at a stage in life where we’re looking to move from a condo rental in the city to a home in the suburbs. While we both have strong W-2 incomes, the large number of properties I own has made conventional lenders and agents caution that securing a loan for our primary residence could be a highly complex process.

I've consulted with some local banks I work with, and one has expressed potential interest in financing our primary home. However, their terms involve a 20-year amortization, a 5-year ARM, and a rate of prime + 0.5% thereafter.

I’m exploring other options for financing and would appreciate any suggestions or advice. The timeline for this is not immediate but likely within the next six months.

Thank you,
Allen

It's like investing in stocks vs broad market index funds. Each stock will have high variance, but when combined into a portfolio, the variance will be reduced because the correlation between each stock is < 1.0. 

Each house may be unpredictable, but if you have 20+ rentals, the portfolio level cash flow should be a lot more predictable. So when you are new and have 1-2 rentals, you should expect high variance.

I am in the last stage of a whole life insurance policy application. I have a few questions before I proceed with finishing the app:

1. Has the borrow rate historically been lower than the dividend rate? Like before the great recession.. last 15 years was very abnormal.

2. Can you use the life insurance policy's cash value as asset on balance sheet?

3. Can you use the cash value as POF for purchase? I suppose I can take the money out and put into a bank account and then submit it, but that would be a lot more work

4. Anyone want to review their experience with whole life policies as a part of their real estate investing strategy?

The policy is from Mass Mutual fwiw.

 I did not, but it would have been a great deal looking back lol

Flip to pay down properties, expenses have been so volatile. If you remove the mortgage, you will have REAL cash flow. Partner up with a few local investors and start a pm company that manage only partners' units. You can reduce your pm cost from 11-12% all in (incl leasing and maintenance markup) to maybe 6%.