All Forum Posts by: Calvin Lipscomb

Hi.  It sounds like you need to divide up your financing expectations.  You may need a rehab loan to finish construction but not pull money out.  And when the building is stabilized and rented and cash flowing, you can then refinance to pull cash out.  Did lenders say why they are not comfortable providing financing to date?  That will help the group point you in the right direction.

I am confused you ltv is 50 and you can't get funding?  Something I am missing I am sure.  I would tell you that you just need a different credit union or bank. 50 ltv is impressive and I am not sure why anyone would turn that down. 

Do you have money set aside to carry you until the units are rented

???

How many tenants are there altogether? How much are you holding back during stabilization? How much is the loan for total?  What is the experience of the people involved  Tag me so I can answer back Please. 

Awesome! East end is one of my favorite streets!

@Calvin Lipscomb Did the link work?

https://docs.google.com/document/d/1sznc5WkhNhsl7YonJcwas5bOAfLfpSG3KbfiPSCtTW0/edit?usp=drivesdk

Purchase: 67k Rehab: 33k Rent: 1125/mth BRRRR: Refi with commercial LOC @ 85%LTV, Appraisal came in at 130k

On to the next one.....

Hello BP peeps!

My husband and I closed on our first SFH in a B+ neighborhood at the end of June. After a couple of weekends of hard work to get it where we wanted, we listed the property on Zillow, Trulia, Hotpads, Craigslist, Apartments.com, realtor.com and a few others. It's in great shape with hardwood floors and a nice layout. We have gotten probably a dozen or so requests to tour the property -- several showed up, others never did. Our home has been listed for a month now and I'm getting a little worried. We can afford to eat the mortgage payment, but would rather not of course considering we started down the REI path to build wealth and increase cash flow, not dent our wallets. The monthly rent is comparable to other similar homes in the area. We have stood by the principles Brandon discusses in his book requiring applicants to have credit scores 600+ and gross monthly (or combined monthly) income of roughly three times the rent. We don't want to waste our time on showings to applicants who won't qualify so when they reach out to us via Zillow, Trulia, etc we follow up with an email telling them we are happy to give them a tour of the home, but also tell them to be aware of our requirements. Does anyone have any advice on this? Is this too harsh? Should we be more lenient or stand our ground? Am I freaking out prematurely considering we've only been trying to rent it for a month or should I be worried? Also, does anyone suggest listing our property in different ways -- i.e. leasing agency, old fashion bulletin boards, etc?

THANK YOU so much in advance for your time to answer my questions. We are just starting out and very excited about our first purchase. Now, we just want it rented to great tenants!!

-Stephanie

I have an LLC for each of my properties. I agree with @Lance Lvovsky and @George Pauley. Risk vs. Reward.

It's an insurance policy.  

I walked into my lawyer's office expecting to get 1-2 LLCs.

He did a search on my name and within 30 seconds knew about all the properties I owned in that area.  He said, if someone were to get injured on one of my properties (hypothetically) and walked into his office wanting to sue me, he would most likely take that case based on the amount of houses I had and the assets to go after.  It convinced me that I wanted to do what I could to mitigate that risk.

To each their own - there's no right answer.  I'm just sharing my story with you. 

BTW, where did you end up buying?