All Forum Posts by: Chase Gochnauer

@Kenrick Lumenier Yes the house was previously rented already through Aruba Happy Rentals. We only closed a week and a half ago so I have not had time to see what kind of return there is. I don't expect it to be a return like I'd see on a property at home. But, trips here to work on our property are tax deductible and it's nice to have a "home base" since we enjoy coming here.

Hello! I just purchased my first vacation rental in Aruba in the Opal neighborhood in Noord. Any other Aruba investors here?

Hello, I have someone interested in purchasing some real estate with me, purely as an investor. They will need to do it by rolling into a self-directed IRA to avoid any tax consequences of pulling from their 401k.

I also have some funds I was going to contribute to a self-directed IRA to do the same.

I am having a very hard time finding a good company to work with. It seems that a majority have questionable reviews. Can anybody help provide who they have used and if it has been a positive or negative experience?

Bump! I am about to post this same question. It's a headache to keep track of this and keep it updated for different banks and such.

Originally posted by @Bon Osonwanne:

@Chase Gochnauer Can you recommend your portfolio lender? Do they work across state lines? Or how do I go about finding one for more than 10 loans?

 Hello Bon, mine do not work across state lines, they will not even cover the entire state of Iowa.

Basically, in your town, just find the couple of local banks that only have 1-3 branches and go in and chat with them. They keep the loans in house, and only invest in their local community. You still need to qualify of course, but it's good to have those local relationships. Occasionally they may know of deals as well being in the local real estate industry.

Originally posted by @Nicholas Richard Ray:

This is great info here. @Chase Gochnauer I'm curious as I have a property I plan on rehabbing shortly, renting, and refinancing. Are the properties you've refinanced rentals? If so, do they have to be occupied before the lender will cash out? @Neil Sinha any thoughts on this as well?

Sorry @Bon Osonwanne I have mine under my name now so I can't contribute much to the LLC debate yet. However, just in my limited knowledge and an attempt to contribute I think the general rule around is 10 loans to a name and then you'd need a portfolio lender to be doing anything past that. So if I understand it right, at that point you're no longer borrowing against your name, income, DTI. It's against your real assets essentially. That may be over simplified and completely wrong but I hope someone will correct me if so still trying to learn!

In my personal situation, no, I don't need to have it occupied before the lender will cash out. But I do not need the income for my DTI requirements.

Originally posted by @Bon Osonwanne:

@Chase Gochnauer So you use your LLC to buy and to cash-out refinance? Lender told me max is 10 loans on individual name. Are you doing blanket loans on your portfolio, vs. individual properties? How many loans do you have? (More than 10? Under LLC?)

 As Neil said, the 10 loan limit is secondary market loans. So loans that would be Fannie Mae backed for example. If you're working with a local lender, there is no limitation.

I have probably 60 loans, 5 or so in my personal name that are secondary market loans, and the remainder LLC. The secondary market loans are 30 year amortization and fixed rate for the duration of the loan. Most local lenders are something like 20-25 year amortizaton and the rate is only fixed for 5-7 years. But that is very lender specific.

@Bon Osonwanne Go chat with another lender. Every local lender has their own requirements, and are sometimes negotiable. Some has to do with you as a borrower too, I'm a strong borrower due to another business I have. I did probably 30-40 single family over the last couple years and refinanced them all at 75-80% of appraised value, typically less than 6 months.

@Bon Osonwanne Depends on your bank. I've done less than 30 days.

Hmm. You placed it in drop box on Friday? I'm not a lawyer but I would think if you made good attempt to deliver earnest money but no one was there to receive it and you placed in drop box, then you "submitted" the earnest money within 2 days.