All Forum Posts by: Justin Putt

Thanks for the advice Ben, seems like going with a local bank might be my best route right now until I have more time being self emplyoed. I am hoping it works out with the current bank I am looking at, but if it does not I will defintely look at contacting more banks to see what they can do for me.

Also, I did not know you could use a commercial loan for a residential property. Is this something that I could look into with having a new business? Can you use commercial loans for refis?

Hello Scott, I guess I do not understand why you are saying that you "tried to explain this to me." I thought I was pretty clear that I did understand and I appreciated it. I defintely know how bad the lending market is right now and how worse it might get in the future. I only was looking for answers from professionals in the lending market for my possible scenario. I apologize if you thought I was not listening to your advice as I do appreciate it along with everyone elses.

Doing a cash out refinance on my properties will be just one of my exit strategies. I will be marketing my properties to other buy and hold investors at a discount. I hope to keep at least half of the ones I rehab for my portfolio and the others will be sold off.

Thanks again for your help Scott and everyone else.

I apologize, I realize why you were talking about commercial loans. I never specified residential or commercial. Yes, I am looking at residential not commercial properties. And I am pretty familiar with the fact that commercial lenders have different guidelines, even though I have never crossed the line from residential to commercial yet.

Thanks for the clarification on the defintion of a "portfolio loan." Sounds exactly what I am looking to do. I will defintely email or pm you if I have any other questions.

Scott- I do know that I will have to expect a lower LTV, would like to stay at 75% or higher if possible though. I do plan on buying very cheap, so that will be a plus.

Hey John, I appreciate your response along with everyone elses. Can you be more specific with "commercial lenders" and "local bank's commercial department." I am speaking of doing multi-unit residential properties.

I have found a local bank that I believe can help me out with both the rehab and then do a cash out refi for me after the rehab is done. He was explaining this as a "portfolio" loan. Not really sure what he meant by this. Maybe they will lend to me for holding my portfolio with them. He did say that I would have to stick with SFRs and Duplexes as it is very hard to do 3 and 4 units right now.

I am looking to rehab several multi unit residential properties over the next year, and instead of focusing on selling them, I plan on refinancing them, pulling out some of the equity and keeping them as rentals. These properties will primarily be in Michigan and some in Indiana.

I need someone that would be able to take care of this refi for me on a regular basis.

Probably will have to be no doc as I am self employed(less than 2 years) and be able to pull cash out, preferably up to 80%LTV. I currently own 6 properties already including my own residence and have a 700+ credit score.

If anyone can help me out please let me know.

Not to go off topic or anything, but would you do a Quit Claim if I wanted to put my rental properties in my LLC instead of my name? Is this very hard to do?

They can, and that is how I see it. I think Mike is just saying that in his case and if someone were to choose to do so, he basically doubles his cash flow by doing management and maintenance himself.

However, if you can make $100 an hour or more doing other ventures or another job, it would make sense for you to do hire these jobs out.

Some people can't or would prefer not to do these things themselves. However if they choose to take on these jobs themselves they will be able to make more cash flow.

Thanks!

I have heard mixed things about this. I always thought you were not able to, because banks will not allow assignable contracts. One way I heard you can do it is by adding their name to the contract somehow. Not sure how this works though, would be interested to know.

It startled me a little too, because all of my loans including my primary residence is through countrywide. Countrywide seems to be buying up as many loans as possible. Not sure if they will be doing so anymore though.

The fed decrease defintely is going to help the market, I know the dow is already up.