All Forum Posts by: Chris C.

@Daniel Smith I'll tell you what I am going to do (haven't quite go the opportunity yet):

Create an LLC and have the LLC lend you a mortgage on the property you are receiving. The reason why this works is because instead of you needing cash or receiving a cash out loan, we are now refinancing a loan – your loan. There no reason to wait any time or have any "whichever is lower" rule come into play. We are just refinancing a loan. Here's how it works:

You create an LLC You buy a home Your LLC gives you a loan for the home. You file the deed for that loan at the county courthouse. You use the money from the LLC to buy and fix up the property. Once the property is completed, your conventional lender comes to refinance the loan. Your conventional lender runs title and sees there is a loan. Your conventional lender refinances you into a new loan, and cuts a check to your LLC in the amount of 75% of the value. Please don't confuse this 75% with a "cash out" amount. The non-cash out LTV on a refinance is also 75%. We are refinancing a mortgage. Your LLC's mortgage. Essentially your LLC has become the bank/hard money lender/etc. However you want to think about it. You get to set the interest rate (it can be 0%) and you get your investment amount back sooner. Some things to think of:

To file a deed at the county courthouse is $100-$150 in cost (depending on which county) And you want that note to be pretty close to 70% of the ARV for the property if you don't want to bring any money to closing. 70% will allow you to roll in your closing costs. If you want it to be at 75% just keep in mind you would need to bring your closing costs out of your pocket to complete the refinance.

Hope this helps...

Just started about 6 months ago at 37. Have a fourplex, closing on another fourplex in 4 weeks, and closing on an sfh in a few weeks.

@Damon Alford I've previously worked with a lender that's open to sub 75k loans. You can give him a try. I'm not sure if I can post publicly so you can PM

@Thomas Richardson Sounds good, you may want to use something like a Debt Service Ratio of 1.25 for a quick calculation but whatever you come up with be consistent on all your deals.

@Joey Newton that sounds pretty great to me... But, I'd hire an agent experienced in the area who could properly advise you and handle the transaction. You can probably find an agent willing to do that for a discount, since you already have the properties. Also, if are are buying 8 units you will need Commercial financing vs 2 4 unit purchases which could go residential if on different parcels (see lender). See rent roll history to determine vacancy rate and a market overview for the same.

@Maria L Zachrau I work for TurboTenant and wanted to thank you for your feedback! We take great customer service very seriously here and are so happy to hear you've had a good experience using our software. Feel free to PM me if you ever have any questions or concerns regarding TurboTenant! :)

@Chris C. it was a flip so wise to pull all the permits to be signed off for conventional. financing etc. 

Plumbing permit was a breeze as that inspector was a whole different  animal. However, this town insists on all hard 3/4 copper above the HW tank & to expansion tank, NOT the easy Pex fittings & they do not allow CSST feeds down to the tank.