All Forum Posts by: Lenna Groudan

Hi Joe - thx for the reply!

My comment around not scaling was assuming we did NOT get our cash out.  We would eventually run out.   We are definitely hoping to scale by pulling money out of our cash purchases regularly...

Hi, we are working on our "buy and hold" business plan and came up with a couple of questions related doing cash buys of residential properties followed by refinancing to pull equity out.

We are planning to build a portfolio of single family or small multi-family homes for rentals.   We intend to make initial purchases with cash as we assume the deals will move faster and we can probably get a slightly bigger discount on asking price if we propose an all cash deal.   However, this strategy cannot scale indefinitely!   Our questions are:

- Are the total closing costs and lender fees significantly higher o effectively to this process in two steps?   Step 1:  Buy the house for cash.  Closing costs don't include any lender related fees.   Step 2:   Refinance (70%-80% of the homes value) to get some of the cash out to purchase the next property.

- Is this refinance going to feel more like a typical residential loan closing or does it feel more like a home equity loan process?   I know this is probably fairly rudimentary for a lot of you so hopefully this is an easy one to answer.

Thanks in advance!

Thanks Brie and Ashley, this is great info :-)

Thanks a lot for the info, that was very helpful :-)

My wife and are working hard to make career transitions into real estate investing.   We are planning to do our first deal(s) before the end of 2015.

I currently have a well paying job with a reasonably high net worth and we have great credit so we expect to be able to get favorable loan terms.

We are primarily looking at buy and hold single family rental properties as well as smaller multi-family/apartment opportunities (2-20 units to start).

We intend to form a corporation to hold our properties and gain tax benefits.

However, we are talking about doing this full time (I would quit my job at some point) and we were unsure what the impact of this decision might be on our ability to get loans.  We know commercial loans look more at the quality of the deal, rather than our personal credit but we have read articles that suggest some banks WILL look at personal income which might be low while we are growing our portfolio.

Any advice would be appreciated.

Lenna

Hello,

We are looking for recs for Commercial Lenders in Houston, TX.  We appreciate any help. 

Thanks,

Lenna

Hello,

We are looking for recs for great Multifamily & Apartment Brokers in Houston, TX.  We appreciate any help.  Thanks

Hello,

We are looking for recommendations for amazing real estate lawyer and a real estate CPA in Houston, TX who can help us with our REI company. Thanks in advance