All Forum Posts by: Carin Kveton

 Jeff- Thank you for the info.

I have a duplex I am trying to refinance. I purchased and rehabbed it, using a short term loan. I now need to refinance to a longer term loan. A local bank initially seemed interested. It cash flowed with just one tenant, but has two leases, so I'm cash-flowing over $1000/month, after all expenses. The bank decided to turn us down because our debt/income ratio didn't meet their criteria. This was AFTER the bank stated they looked at the property financial first. If they had "concerns", then they looked at our finances second. Since it was cash-flowing so well, and fully leased, (and owned by us for just over 2 years), I didn't think this would be  a problem. Our debt/income took a hit because we just got into RE Investing almost 4 years ago. I don't get it. It's like the banks WANT you to fail. I used non-traditional funding because the place needed rehabbing, and was empty. A bank wouldn't loan on the property as it was. Now that it is a performing asset, the bank finds other criteria to say no. I plan to seek out other banks, however, how do I interview THEM, so I don't waste my time gathering all my paperwork up front. How do you get them to tell you what they are REALLY looking for? Any tips on how to tactfully work with banks to effectively communicate with them would be appreciated!

Jack- I wonder that, as well. Currently, I am working with a small, local bank, to refinance a duplex I already own. She did tell me that, for income property, they FIRST look at the financials of the property itself. Does it cash flow, how is the property condition (i.e. does will it be in need of big ticket expenses in the near future), leases in place, and how much $ vs the appraised value. If that all looks good, she says they will finance. They will look at MY financials, if they have a question or concern about how much money i'm trying to pull out, if a unit was empty, etc. This is the only bank I've come across so far, that is willing to look specifically at the property itself, BEFORE it needs to look for a W2 from the owner. I also know, from other investors that, once your establish a track record with a bank, and show responsible borrowing (buying right, paying your mortgages, etc), some investors can just call their local bank and ask for  more money for an additional property purchase. (I imagine it isn't quite that simple, but I can see that happening if you work with  a local lender). I'm finding that small banks are much more receptive to loaning within their area, because they are vested in seeing their customer investors succeed. My lender I'm working with actually drove out to the property to see what it looked like! You won't see a big bank do that!

Anyhow, I hope I at least partially answered your question. I think it is establishing a track record of buying and maintaining/renting out properties (we've been in this coming up on 3 years now), and networking with like-minded people. Also, I've used some of the crowdfunding and hard money lenders I found via Bigger Pockets, to get into a property. Sometimes, refinancing a property with a bank can be less problematic that an initial purchase (a few less hoops to jump through). I hope this helps. Keep moving forward and best of luck!

Cynthia- Best of luck to you! I have found BP and my local library to be great resources. Also, we did join a local Real Estate Investing group, which has helped with leads/networking, as well as some additional education.

It appears to be in good shape. And it is neutral. If everything is working and clean, I'd keep it. 

Great info, Sue! I've been looking at investing in rentals near a college. Thanks for sharing this!

Your situation can be tough. We had a weird/bad patch where we had both units of a duplex (which had been newly remodeled), empty for a couple months. Long story short, we did get a prospective tenant that wanted to rent one of the units, but had a horrible credit score, plus a prior eviction, AND a couple shoplifting strikes against her! I said a big "NO"!. The agent she was using to help her find a place to rent asked if they were to put up an additional months rent, AND increase the security deposit, would I consider her then.... I said "NO"!. If he was willing to do that, I told him he should consider renting to her! Anyhow, I'm glad I held my own. Very shortly thereafter, I got another tenant who was qualified, and the following month, another tenant for the second unit. They have paid their rents on time every month, and have had no complaints about the property, or each other. While the short term (getting it rented sooner) sounds great, it could end up costing you more in the long run. He doesn't sound as bad as the applicant I had, but, go with your gut instinct. If you are concerned about his credit/ability to pay, etc... reconsider if your asking rent is reasonable. (I use rentometer.com - and it has been very helpful in my area, in figuring out reasonable rents , based on area and number of bedrooms). Good luck!

Welcome@ BP has a ton of resources. My personal favorite is the Podcasts! I've learned so much from people approaching RE Investing in so many different ways! Best of luck to you. 

My father lives in WI, and wants to go to AZ (family there/warmer weather). He's fine to have me pull out and use equity on his existing property. How can I do that? (I currently have some rentals, as well as 2 fix/flips. Because of the fix/flps, my money is tied up.) What my father and I would like to do is this: leverage the equity in his property to help with a down payment/purchase a duplex in AZ, have him live in 1/2, and have the tenant in the other half help support the property. We plan to keep his current SFH as a rental. I believe I need to have a Quit Claim deed (I am the primary for his medical and estate, should anything happen to him; so I believe I need to get a Quit Claim deed anyhow, to prevent the property from going into probate). Anyhow, IF I get my name on the deed, is that helpful to assuming his mortgage, or is that a whole separate deal? If I reach out to the lender, can they just put my name on the mortgage, and then I can either refinance, or get a second? I know mortgage lenders are particularly fussy since the 2008 downturn, so i'm thinking that won't work. IF it isn't helpful, what other way can I do this, short of buying the property from him? Or is that the only way to do this? Any suggestions, guidance would be MOST appreciated! My father would like to spend Christmas in warmer weather this year. ;)

Darrell- I agree. My experience with hard money has been expensive. We've partnered with less costs. We'd rather keep this project to do ourselves, not so much for the profit, but to keep the risk off of others. I feel there is more risk with fix/flip than a hold property. However, we'd certainly rather partner with someone than get 100% of nothing. That's why I titled my question "How far do you go before you walk away from a deal".... I'm learning that investing requires a different mindset from what I'm used to, which I find very freeing, actually. I have an entrepreneurial spirit and like to think outside the box and problems solve. You don't get to use those talents much working for someone else. As stated, I'd love to close on this deal, but for more than just us. It was a great referral from a realtor I have worked with, and would love to keep a great working relationship going. Also, Darrell, I agree. I have yet to do a deal with NO money out of pocket. I'm sure people can do it, but we just aren't there yet. Thank you all for the suggestions. I'll keep you posted.