All Forum Posts by: Dave DeMarco

@Kent Julian I am currently in your situation and am attempting my current purchase using this method. 

https://www.biggerpockets.com/forums/48/topics/460...

It supposedly eliminates the seasoning requirement and lets you get your money back out right away. I'm working with Sun West Mortgage to complete the refi. Not sure if they lend where you're looking but worth a phone call. 

@Andrew Postell

Update

LLC is in place and closing on a rental property in Tennessee on 12/27/2017. I've had the title company prep the note for the loan from my LLC to me, and the deed will be filed at close showing the loan. I have a lender that I have just submitted documents to for the REFI.

Truth be told - I'm nervous. 

Does anyone have a referral to a bank that they have closed with using this method? I would like to have a backup in place.   

Here is the link to what I'm trying to accomplish

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property?page=1#p3097855

Thanks Andrew, I'll call later this week.

@Andrew Postell  @Jason Sullivan Thanks Jason, I saw that post. I was looking for someone who has actually used this method. Have you used it? 

I recently read on the forum that if you purchase a property for cash through an LLC by lending yourself the money (draw up a mortgage note and file it) that you can REFI out of it with no seasoning and recover your cash. I wanted to verify that this is indeed the case and connect with someone who has actually completed the process. I have an equity line I would like to use to make the purchase and pay the equity line back immediately.

Thanks in advance for any help.

Need some advise from those with experience. I am about to list my single family rental for sale. The house will most likely be sold to someone who will be an owner occupant as the numbers will not make sense to an investor. The tenants are currently on a month to month lease and I was curious about the best way to show the property (or not) with them in it and what I should expect. I want to give them ample time to find a new place and accommodate them as best I can. 

Issues:

I DO NOT want to carry the property un-occupied while finding a buyer. 

They are not the cleanest people and will need to keep the place show-able.

I have had issues with access to the property in the past, although dealing with the adult son seems to have solved this problem to a degree. 

How much notice do I give them? How much time is reasonable to a buyer to occupy?

What should I be wary of and how can I best help myself?

I currently have 2 properties with Cleveland Property Management - a single family and a duplex. I have had the single family with them for 6 years and the duplex for less than a year. I WOULD NOT recommend them and would advise you to look elsewhere first. 

My experience is that they are NOT good with completing maintenance issues in a timely manner and MUST be "looked after" if/when you have them. I've had maintenance issues take MONTHS to complete with them. Their follow up is VERY POOR (if they respond at all) and they will hit you hard on the cost of any repairs. They have had a lot of turnover recently, appear to be under staffed, manage A LOT of properties and this is not helping their performance. 

They did do a good job of finding and screening a tenant for my single family property and we will see what happens with a vacancy in the duplex. Also they are good with rent collection and issues related to that. Look to pay 10% of gross rents.

After some work that needs to be completed I will be looking for another company.

PM me if you would like to talk in person and good luck with your search!

Hello All,

I was looking for a lender who could refi my duplex (non-owner occupied) in the Shaker/Buckeye area of Cleveland, Ohio. The property was bought for cash and has been seasoned for 6 months. There are tenants in it (inherited) and based on comps the property would probably appraise for between 25-35K. Any thoughts on what lenders would handle this type of loan based on the seasoning and loan amount?

Thanks!

Tim I will be in touch!

I found the property on realtor.com. I picked several properties I wanted to see, contacted my agent and let him know when I would be in town.  I also contacted my contractor and scheduled him to be with us for the day. This property was one that we saw that day and the owner happened to meet us at the property. She let me know that she had some problems with  The upstairs tenants and was done with the property. The house checked out with my contractor and I made an offer the next day and after some back-and-forth she accepted.  In between the acceptance and the closing she managed to find another tenant for the upstairs unit and when I closed the house was fully rented. I had my realtor get the keys and take them over to the management company and have been collecting rent ever since!