All Forum Posts by: Bryan Loveless

 @Joe Villeneuve we discussed this a few months back. I had a very hard time finding anyone to offer a line of credit on a non-primary property without the 6 month seasoning requirement, and I must have called over 100 institutions easily. Are you just suggesting getting a loan for the initial 6 months before the refinance? Have you actually seen credit lines being offered against non-primary residences without seasoning periods? Thanks in advance

@Jason J.

 I did a solid 70k renovation on a flip recently while working 60+ hours a week. For me, the biggest concern was making sure my GC wasn't screwing things up. I am still new to this and didn't have a GC I'd worked with numerous times before to be sure I trusted his ability/judgement. I found myself stopping and checking in on the property sometimes as much as 3x a day; before work, on lunch, and after work. While this was a pain in my ***, I also made around 40k profit on a total cost of under 150k. The project took about 2 months as I fired 2 different GC's until I finally got one who followed instructions and had good judgement/intuition/quality of work. Once I found him, and trusted him, I had to visit the property less often (still once every few days as my trust was still building). In the end, 40k profit in 2 months was well worth the 10-20 hours a week I spent on-site in addition to my full work schedule. I also have a wife and son at home, and while they weren't fond of me leaving at 6-7am and getting home at 8-10pm, they will certainly love the vacation we'll be able to take =D.

All of that being said, I wouldn't line up that type of deal back to back to back as it would end up taking a toll on me, and persona/family time is important to one's mental health. However, if you have a good GC you can trust, it will alleviate the majority of the stress and time requirements.

In summary - you can do it like I did, but it will be frustrating (although worth it imo). Or you can have an awesome GC on your team, and it will be a great experience. Either way, go for it! 

Whatever happened with this?

Thanks

@Jon Holdman 

 and @Albert Bui 

You guys keep saying if you "meet the requirements for the delayed financing."

Can you please help me out by defining what you mean by delayed financing and what requirements it has?

Thanks in advance

@Kevin Cook 

I'm also interested in better understanding your suggestion. Could you please elaborate?

Thanks in advance

Just make sure that you stop by and check in on the condition of the pool and pool equipment regularly, especially if the tenant's will be handling paying for it. I would suggest getting the scheduled maintenance from the pool company and making sure you stop by right after they come each time to make sure everything looks perfect when it is supposed to be at it's cleanest. That way the tenants can't blame the pool guys on being lazy if it's something they are responsible for, and you can be sure to identify any equipment issues as quickly as possible. Good luck

Another question - has anyone has much luck with HELOCS? From most of my calls today everyone wants to offer HEL's but not so much on the HELOC side? Seems to me that the HELOC would be the best bet since i'm only paying the borrowed funds off when I'm actually using them versus every day whether I'm using them or not. I know that HELOC's work differently and can have balloon payments towards the end or turn into amortized payments at the end but I'm just curious why I haven't talked to more credit unions willing to offer these.

Sorry everyone, I wasn't aware of the rules on posting requesting for specific lender info being not allowed in this section. In order to avoid any more issues, let us refrain from posting lender-specific recommendations. As long as no lender names are dropped in this thread though we should be fine.

That being said, what are the best terms you guys have gotten on HELOCs or HEL's on investment properties in terms of LTV, Seasoning period, and Before vs After-repair ARV?

I know a couple HML's that will do based their LTV on after-repair ARV, before the repairs are made. But they are the only ones I've seen do it that way. Has anyone seen this type of method on a HEL or HELOC?

I was renting a house with a pool a few years ago, from owners that lived out of state. The lease stated that the owners were to maintain the pool, which they did through a company they hired to do the work. However, this company rarely did anything but show up and fool around for 15 minutes, and the pool was almost always green and murky. We were rather upset about this, as the rent for this home was at least a couple hundred bucks higher than it would have been without the added perk of having a private pool. We would constantly send pictures of the pool to the landlord with formal complaints, and for his sake, he did seem to care, but he could not ever get the problems resolved. After a few months he switched pool companies, but they still took advantage of him. We would go out and complain to the pool cleaners that we were sending pictures to the owners and that they needed to do the job right, but it never made any difference. In the end, it severely strained our relationship with the owners, as we felt we were owed at least a discount in rent for the inability to enjoy a major amenity that attracted us to the property in the first place. The owner disagreed, and didn't discount anything, and we moved out at the first chance possible on pretty negative terms. I'm pretty sure the crappy work by the pool companies may have also damaged his filtration system. I drove by a few months later and he had renovated the property and listed it for sale. He had tons of rentals, so this one must have really upset him in order to make him want to sell it. Just a heads up. When you pick your pool company (Which you should) make sure they do a good job.