All Forum Posts by: Jeff Wright

Our LLC owns a duplex (worth 65k) and a SFH (worth 50) outright. We paid cash, fixed them up, and they are rented out for about 6 months now. We are trying to pull the equity out of them in the form of a 30 year fixed. But after talking with 5 different mortgage financing companies, 3 banks local to me (including my banks), and 5 banks local to the properties, nobody can do it. Either the loan would be too small, or because its owned by the LLC they cant get a conventional, Heloc, or anything (even if transferred to me personally), or something else or another. Credit is over 750, no problems with finances.... What's next?????? Grrr. Any advice is appreciated.

So you read everything, watch everything, save, work on credit, etc, then it's time to buy. You build a team of folks to help, and you purchase 2 properties in the same week. With Cash! Your teamate contractor gets you a bid on both to get them fixed up! The BRRR is going great! The houses are fixed, the Property Manager hired, and your tenants come in! WOO HOO!! now its time to get that money back out of the properties. But you cant... Wait, what?

The only information I left out of the above was the price.  Nobody ever told me that when refinancing, or financing after paying cash, that finding a lender to give you a loan on anything under 50K, is darn near impossible.  The duplex is worth 65k now, and the SF is worth 55 now.  But to get a loan on the usual 75% worth of equity... negative.  Even packaging them together into a portfolio loan... negative.  If the loan they give you isn't at least 100k... its probably going to be a negative. 

We didn't know this issue was an issue.  Just for those planning to do what we did first starting out... you don't know what you don't know.  Now ya know something else.  

@Reginald Truss We are trying to pull out 50-70k.  Which is about 50-70% of the equity.  Been told no buy a dozen different folks that know a dozen folks of their own.  Credit is over 750, Houses in Montgomery Al, in no hurry to close so whenever is fine. 

@Simmy Ahluwalia We are now figuring out the downfall of cheaper properties. The BRRR method doesn't work very well with cheaper properties. That's something we were never told! Figuring it out though.

Need a lender for property that we outright own. Duplex is now worth 60k, SFH is now worth 50k. Our LLC owns them outright and all units are rented. Need to pull the money back out. looking to pull out 75-80% in 30yr loan. Great credit. Will be using those funds to purchase more.

I cant purchase because of whatever reason, however I have money just sitting here in and out of the stock market.  But would love the monthly income instead of the uncertainty of the market.  How do you get into lending money?  Are there any good links you can provide or a direction you can throw me to help me look at the paperwork used by lenders, etc. I am green at this.   Where to start. 

@Jaysen Medhurst Thanks for your reply. It is a duplex. It is just my assumption that I could get it for that as I understand the owner is motivated to sell. Assumption only, not final numbers. I made some adjustments to the numbers based on your comment and actually the numbers changed quite a bit. One question I have is when it comes to the CapEx, maintenance, etc, for a MF over just a SF, should I be increasing those numbers?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Looking for investor friendly bank or finance options in the Jacksonville Florida area. What locations have you worked with in that area that you can reccomend to me? Thanks.

@Elenis Camargo is Jacksonville getting pretty saturated?  The more I look the lower quality the investments are getting as far as area and grade.  I also am looking into investing in Florida and am wondering if there are other areas of the state better suited for investors at this time?  Also, can you share those market updates with me also?  I would love to pick your brain for the Jacksonville area.  !!!