All Forum Posts by: Kerry Baird

I am going through the exact same thing. The requests for documentation is much more than our owner occupied (4th loan) just a few months ago, even though that was a VA loan and was pretty heavy on documentation itself. They didn't want K-1s from our LLC in the last loan, but they want every one for this closing. We close next week and we did what you suggested. We borrowed against hubby's TSP account.

The bank wanted "liquid" funds, to include 2 months reserves for each property we own. (I am thankful it isn't 6 months reserves!) For the last loan, it was fine to have this remain in an investment account; for this one, they want it "liquid" and want to see it leaving the old account and arriving in the new account, with no screenshots allowed. The part that made me uncomfortable is that the underwriters required me to close my oldest and biggest credit card before they will release funds. This one was in my name, rather than in the name of my W-2 earning hubby. I fully expect my credit to take a big digger now, by losing a 15 year old line of $25,000 on one single credit card. Yet we are less than a week from closing...so what else to do?

I expect the underwriters to ask me to change the name of our firstborn soon! LOL

I commiserate. I'm starting to look for "alternative funding"

Hey there,  My husband is from the Space Coast of Florida and we just moved FROM Mildenhall.  We *did* buy over there, twice.  :D  Are you stalking us?  j/k

Welcome to BP.  

We have recently moved to a new State, so we are starting all over in a new market. I have determined criteria for this market, and have a plan, and have a specific area to invest.  Now we are a week from closing on a 5th property and the underwriters are asking for a ton of additional information.  Others are right in this window, so I will elaborate.  

For example, even though this is a personal loan, they want the K-1s for our LLC. Well, this is a series LLC and therefore it doesn't look the same as others. I have had to write to my CPA twice to explain it to the underwriters. From there, they want my oldest and largest credit card closed, and want to see "proof" that it is closed. Yeah, that will hose my credit for some time, and I'll be out $25k in credit.

Since we live in the SpaceCoast, my husband has an explanation that is fitting: like a launch sitting on the pad, there is a lot of shaking going on, smoke is pouring out, and for some time the rocket just sits there.  All we have done to prepare for this moment will soon propel that nose cone high into the stratosphere.  But until then, there is just a lot of smoke and shaking going on.  Once we obtain liftoff, and we in this thread are nearly there, the income from the houses will start paying for the next one. 

  I am so ready to move out of the regular lending space and into something different!  

I found the deals first...and I was doing a fix and flip business, so I had a little bit of time to find a buyer.  I only did a couple of pure flips, and in those I had the deals and also had a couple of "suspects" to pair with the house, but no buyers list and nothing firm. 

Now, we are mainly doing a buy-and-hold kind of business and am after cash flow.  

Thanks for posting this veteran-friendly information!  Lenders and the products we need to build our business are often a challenging part of the investing equation.  

As I grow I search for things I don't know and others do: how to find an accomodator for a1031 exchange, do I need a whole new roof or just repair the roof I have, how does this decision change my tax situation, I've got my first 4 loans and find out the 5th is more difficult so how do I carry on, do I snowball my rents and pay down my mortgages or keep borrowing, now in single families does it pay to do multifamily properties...

I am searching for something each and every day.  And I am answering questions for folks who are a few steps behind, where I recently was.

BA Biology

Couple classes of grad school: International Relations and Management Information Systems.

Daily~ Real Estate Radio Guys, as well as BP.  Also Financial Sense Newshour.

Well done!  Pulling the trigger is difficult, and you now have the hang of it so you can work to obtain better results, consistently.  TQM was the buzzword when we were young airmen...Continual Improvement is a great concept on and off the flight line. Our strategy (and now at 22 years in service) is to "go wide" with 30 acquisitions, and then "go deep" by paying them off.  

PS: I attended survival school with a Dragon Lady pilot, Capt "Hawk" Hawkens.  All the best to you~ fly safe.

Please come join us at the Knowledge Exchange in Palm Bay MONDAY from 5-7.  Priscilla isn't available this week, so my husband and I are guest-hosting.  We will be looking at the numbers on our current deal and discuss road-bumps in the process. 

Please bring any deals to analyze, questions you might have.  Hope to see Brevard County, Florida investors come out in droves!