All Forum Posts by: Troy Bailey

Can someone please send me the meetup group for the triad. All my investments are in eastern NC and the triad is the next market I would like to enter before venturing out of state. 

@Shoshana Shulman I Always looking to partner on deals send me a PM if you are interested 

Reduction in sale price does not improve cash flow as much as the  improvements to the property will produce in rental income. I have never heard of a cash out mortgage for an investment property before. 

All of the properties that I have purchased were in need of repair and I negotiated as seller repair credit which is always an issue on the day before closing. Is there a limit on how much the seller credit can be? Also does the credit have to be paid to a 3rd party contractor? My first deal it was paid to my LLC. 2nd deal my realtor told be it could not be and I had it paid to one of my contractors. 3rd deal it was for missing appliances and again paying to my LLC was rejected even though technicality the mortgage is in my wife's name and she is not on the LLC.

@congratulations! I made the same mistake as you wanting to renovate vs rent right out the gate. Now I just fix and renovate while the tenant is in place. It’s a win win the tenant thinks they are getting super service and I’m not loosing any rent. I did a convention 30 year fixed at 5.35. That’s a great rate for a commercial loan I can never find rates that low so all my deals have been convention with a substantial umbrella insurance policy. PM me is you would like to discuss strategies to lower vacancy. I purchased my 4 unit last year and I’m currently looking for my 2nd one. 

Hey Alex thanks for the response. Your blog was the main reason I jumped off the side lines and stared investing last year. My main question is should I be worried if a lender is not willing to provide an official loan estimate. My last experience with a broker there were points added a few days before closing and I don’t want to go though that headache again. I agree that good service is important and I would even pay more for great service and a hassle free closing but you don’t know the level of service you will be will be getting until you close on the loan so it’s more of a crap shoot. 

I keep my properties in my personal name with a large insurance policy so I can take advantage of the cheaper consumer loans. I do have a LLC based in NC and I use it as the company that manages my properties. This helps with the tenants not knowing that I'm the owner unless they are savvy enough to look up the property records. It has made dealing with the tenants much easier.

@Lily Styler I use John at home inspection connection. I selected him due to all of his great reviews and he has been doing all of my inspections. I'm not sure if he does commercial and but he has done all of my multi & single family inspections. 

So I have used up my golden credit union loans and now its back to the wild wild west of brokers & banks. I completed 5 loans applications and I have not been able to get any of the lenders to send an official loan estimate as described by the CFPD https://www.consumerfinance.gov/about-us/blog/know-before-you-owe-loan-estimate/. I have gotten emails with numbers and when I push back for an estimate I get a closing spreadsheet. Is there a reason why lenders will not provide the official loan estimate? Should this be a red flag or is this par for the course. I have been spoiled dealing with the credit union who was very transparent and now  I remember how much I hate getting financing. Since I'm under contract I'm just going to have to go with my gut but I though these regulations were put in place to make this process much easier and transparent for the borrower.  

Let me now if you actually go through with it and how it goes. I posted an ad for one of my properties as room rent since I'm doing a turn over anyway to see what kind of people respond. 

@Sheranda Martin did you end up using the renting individual room strategy? I’m considering doing the same.