All Forum Posts by: David Chappell
David Chappell has started 12 posts and replied 162 times.
Post: Any local banks in Birmingham currently doing HELOC despite COVID
- Austin, TX
- Posts 164
- Votes 107
Awesome thanks for the tip! What kind of rates are you seeing from them?
Post: Commercial RE Loan > 80% LTV on purchase price?
- Austin, TX
- Posts 164
- Votes 107
How much is the rehab? You could add the rehab $$ at escrow and have them add a line on the settlement statement that says repair escrow, some banks will count that plus the purchase price as the acquisition/purchase price. That way you could get around the seasoning requirement and get the purchase + rehab $$ financed. I believe this is only done through conventional lending, not sure about commercial. Hope this helps?
Post: Any local banks in Birmingham currently doing HELOC despite COVID
- Austin, TX
- Posts 164
- Votes 107
@Brice Bishop is that conventional lending or through the secondary market?
Post: I Need WordPress Website Advice
- Austin, TX
- Posts 164
- Votes 107
@Bryce Witcher another thing you can do is find a few sites that you like and that have the same functionality as what you are looking for. Pull up the source code in your browser and search for “theme” and “plugin” and it will tell you the name of the are using as well as the plugins. Hope this helps!
Post: Need Advice on How to Finance a Deal
- Austin, TX
- Posts 164
- Votes 107
@Shonna Parker
That is the strategy that I used for my first rental purchase. I plan on having the refinance done in the next 30 days and will use that to pay back the HELOC on my personal resident and then hopefully find another property to do the same thing again!
Post: Having Trouble Finding A 30 Year Portfolio Lender
- Austin, TX
- Posts 164
- Votes 107
Originally posted by @Stephanie P.:
@David Chappell
I just sent you a connection request
Thanks :) Just sent you a note, thank you for the help.
Post: 3rd SFR BRRRR and 2nd Wholesale deal in Birmingham
- Austin, TX
- Posts 164
- Votes 107
Congrats! I'm hoping to get mine rented before the end of the month, in the Pleasant Grove area. How is the refinance portion coming along?
Post: Having Trouble Finding A 30 Year Portfolio Lender
- Austin, TX
- Posts 164
- Votes 107
Originally posted by @Stephanie P.:
Originally posted by @William Eric Schaefer:
This problem only applies to the Refinance portion of the BRRRR process. I am having trouble finding a lender who will finance a 30 year loan on a SFR rental property. However I have talked with a lot of small banks and a few offered a 5 year ARM with a 20 amortization. The 5 year ARM would work with the properties I am looking at but that obviously decreases cash flow. My biggest concern is giving up the extra cash flow I would get on a 30 year amortization opposed to the 20 year.
Is this because of Covid?
My ideal lender would offer a 5 year ARM with a 30 year Amortization is that too much to ask for😂??
Also I am aware that I can put properties in my personal name and qualify for a conventional 30 year mortgage but I currently do not have the income to acquire more than one mortgage.
I am located in the Birmingham area any referrals would be greatly appreciated!
You're looking in the wrong places. Banks, that aren't quoting conventional financing, aren't good with non-qm lending. Also, it sounds like the banks you're talking to are quoting you commercial money terms.
Having said that, if you don't have the income to qualify, then you need a no income verification loan. There are numerous lenders and brokers that will be happy to give you a quote on a 5/1 ARM with a 30 year amortization.
After speaking to a bunch of them, you'll find, in TODAY'S market, with good credit, your rate will be in the high 6's to mid 7's with a few points. Birmingham is a tough market and the loan sizes can be a problem. Make sure it's above 100K and you'll be fine.
Best of luck
Stephanie
Stephanie,
If I send you a DM would you be able to send me some of the banks that offer these terms?
Post: New Investor in Birmingham, Alabama
- Austin, TX
- Posts 164
- Votes 107
Good to know! I keep seeing cheap properties popup. I will most likely stick to B/C areas until I have some more experience.
Post: New Investor in Birmingham, Alabama
- Austin, TX
- Posts 164
- Votes 107
@John Patton what are your thoughts on Midfield/Fairfield?