All Forum Posts by: James E.

@Tony Castronovo @Joshua Pfaff True - big banks are much harder to work with on the credit side from my experience... which is why I don't do it. I would keep in mind that you don't need to do everything in the same place - if you just need some place to park your cash and pay the bills, that can be at a bigger bank, and then shop around with more local mortgage lenders for your loans. 

Assuming you mean for an operating (checking) and reserve (savings) accounts here and not loans, but I suggest favoring convenience and service. The worst thing that can happen is scrambling around trying to get ready for a closing and not being able to take out a cashier's check because a branch is too far away and you're stuck in traffic. Personally, I love internet banks like Capital One 360 and Ally, but for investments it's difficult because you often times need to do banking in - person (at least I do). 

I suggest taking an inventory of whatever regional / national banks are closest to your home and to your investment properties, and then start comparing and contrasting their programs. Usually with enough of a minimum you can waive a lot of their fees, get free bank checks etc.. and almost all banks now have some sort of internet presence for online transfers, bill pay etc... 

I've had good experiences with both Wells Fargo and Chase and know there are a good amount of those branches near you in Katy - so maybe start looking there and see what works?

Good luck!

James

@Jeff Minc another consideration - if you lived in this place for at least 2 years and have rented it out for less than 3, you could sell and not pay any capital gains (not a CPA so confirm with your accountant on actual dates). If you've had a bunch of appreciation, may make economic sense to just sell and use your tax-free proceeds to fund your next deal. 

1. I've never heard of a market where you can't find what you're describing within a ~2 hour drive. 

2. In short, yes. Longer version, you should start contacting some local mortgage brokers and going through a sample of what you would be looking at. They can usually give you pretty quick prequalification letters that will confirm how high you can go on price (which will be helpful when you start making offers). If you're sticking with 4 units and under you should be eligible for residential loans, which even as an investor generally have favorable terms and amortization periods.

3. This may seem almost too obvious, but contact local RE agents and sign up for MLS feeds. It only takes them a few minutes to set up and having a new potential buyer will be well worth it for them. Start getting a feel for what specific neighborhoods you like by going to open houses and setting up showings. Once you do this enough and run the numbers on enough "sample" deals, you'll know pretty quickly once a good deal hits and you can pounce on it. It's getting harder and harder to find MLS deals but they are definitely still out there.

@Alonzo Avents I would definitely check out @Michael Blank , @Jered Sturm and Frank Gallinelli. 

All have been on the BP podcasts and have a lot of great articles / blog posts / videos if you google their names and poke around on their websites. 

Thanks @Steve Racicot

Right, that seems in line with what I've heard as well. I'm working with an agent and PM from the elm grove team and they seem to have a good grasp of the neighborhoods, but never hurts to see what others think / have heard as well. Thanks @Ann Bellamy.

Officially closed on Friday... here we go!

@Rory Calnan did you end up closing on your deal?

@Ann Bellamy@Monish Lillaney

How are you both defining "south of downtown"? 

I just closed on a multi in Manchester so trying to gauge where my location falls on the spectrum and if it's different from what others / research have told me. For example, this is where I am... 

Hi BP - in a bit of a unique situation and looking for some advice... 

Short story: looking for creative financing advice for purchasing a condo at auction

Long story: One of my rentals is in a 2 unit condo building. The other unit is vacant and in foreclosure. I've been monitoring the past ~6 months and it's finally going to auction! I've never bought at auction because the risk / reward never felt right to me... but because I'm so familiar with this building, the HOA (of which I'm obviously the trustee), structural condition of the property etc..., the risk is considerably dampened vs. an auction where I'd be coming in relatively blind.

That being said, the timing is not ideal. I have another closing at the end of March on my first MFH and will need to set aside 100k or so for that. Unless I can win this auction for a steal, I won't have enough cash on hand to acquire the property. 

What would you do in my shoes? I've raised ~50k from friends, have been approved for a ~50k personal loan from sofi, and exploring some other options. From my assessment, here is what I can do and the pros / cons, but would love some advice if any of you have been in similar situation:

1. Raise money from friends and family: 

- not looking to partner on this so have been looking for short term loans, and offering 10% annual interest

2. Personal loans from P2P lenders, banks, alt. lenders etc.. 

- approved for 50k from sofi at 9% interest. Each app though hits my credit report which isn't ideal, and interest rates can get up to 15+%, also not ideal

3. Tap equity of other rentals

- potential, but need funds 30 days from Monday so probably wouldn't be able to close fast enough. Interest rates have gone up, so if I decide not to purchase at auction then I will have refinanced into higher interest rates for nothing. 

Any other ideas? Any HML do this type of bridge loan when there is no title / deed to secure the loan?