All Forum Posts by: Jim Kalish

I agree getting a HELOC in a personal name has limited options. I called over 90 lenders, big banks, local banks, CUs. Except for the few positives responses I listed above most said absolutely not. Some blamed it on COVID. I think it's more about the cost vs the reward for the lenders. But the door is not closed on this.

There are business lines of credit you can get in the name of your company but for most investors those are even harder to get. 1.25 DSCR. Positive income on your business taxes. And let's face it, if you do it right none of us show much on the way of pass through income. And you have to redo it every year or two. Gets real expensive and time consuming. I spent 2 months with US Bank trying to pull a deal together. Eventually it fell through after they lied to me.

But if you have a decent credit score and verifiable income it is doable. I'd start with PenFed. 

I've been using Quick Books Desktop for years.  You're right, lots of bells and whistles. I just use what I need.  And it saves me money at tax time.  I just send my accountant copy so he doesn't have to spend hours going through all of my stuff.  But what is the best tool?  A bookkeeper :).  That's probably where we will go starting in 2022.  I really hate accounting and I bet I'm doing something wrong.

Best of luck in your investing

@John Teachout Thanks John

@Caroline Gerardo Do you have any lender names?  The post below is something I put up on a wider reaching forum on BP a day ago.  Can you add to it?  HELOCs are a good source of funding if you aren't going ot have the money in play constantly.  With a cash out refi, yes you can get a lower rate.  But if you are between investments you are paying on funds you aren't using.  SO its a good tool to have.

This is a little premature since I haven't closed on anything yet but here are the results of my research and input from BP so far. Keep in mind I concentrated on lenders who are licensed in North Carolina and do lines on NOO. I still need to contact the ones other have given me. The last time I contacted BoA and PNC they said only on primary residence, not NOO. I tried to include phone numbers etc but the site said I couldn't do that.

BMO Harris

Edwin Adorno

Will do up to 3 HELOCs. This is in addition to mortgages you have

70% LTV

PenFed

Will do up to 4 HELOCs but limit the number of properties you can have in your name to 4 I think.

85% LTV

TD Bank

Will do up to 4 HELOCs. I believe they do count mortgages in this total

70% LTV

@Nick Belsky gave me 2 that I need to contact

Symmetry Lending

Quorum FCU

And Nick might be able to help you if you are in other states

Vinay Kolluru gave me 3 I need to contact

State Employees Credit Union (I'm guessing you would have to be a state employee)

Coastal federal credit union

Fidelity Bank NC

And if you or anyone in your immediate family works for Food Lion try Lions Share CU. But they limit you to only 2 investment properties in your name

@Chris T.

This is a little premature since I haven't closed on anything yet but here are the results of my research and input from BP so far. Keep in mind I concentrated on lenders who are licensed in North Carolina and do lines on NOO. I still need to contact the ones other have given me. The last time I contacted BoA and PNC they said only on primary residence, not NOO. I tried to include phone numbers etc but the site said I couldn't do that.

BMO Harris

Edwin Adorno

Will do up to 3 HELOCs. This is in addition to mortgages you have

70% LTV

PenFed

Will do up to 4 HELOCs but limit the number of properties you can have in your name to 4 I think.

85% LTV

TD Bank

Will do up to 4 HELOCs. I believe they do count mortgages in this total

70% LTV

@Nick Belsky gave me 2 that I need to contact

Symmetry Lending

Quorum FCU

And Nick might be able to help you if you are in other states

Vinay Kolluru gave me 3 I need to contact

State Employees Credit Union (I'm guessing you would have to be a state employee)

Coastal federal credit union

Fidelity Bank NC

And if you or anyone in your immediate family works for Food Lion try Lions Share CU.  But they limit you to only 2 investment properties in your name.

@Chris T. Thanks Chris.  I'll check them out.  80% would be great.

Hi BP family. As we all by listening to Brandon and company we should be calculating what he calls pure cash flow. That means setting aside funds for all of the direct and indirect costs like vacancies, repairs, cap ex, etc. I was wondering how folks are tracking that. Do you set up separate sub accounts or perhaps just code it in QuickBooks. Or do you just make sure there is enough on your primary account.

Thanks

Jim

@Umar Javaid thanks. I'll give them another call. The last time I spoke to them they were only doing lines on primary, not investment. I appreciate the info.

Thanks Nick, that's great!

@Joel Douglass Kudos!  Sticking to the numbers is what it's all about.  Well done.  You will definitely succeed in this business.