All Forum Posts by: Travis Beehler

Nope.  In face, I only found 1 lender who'll do 30 year fixed, but they are wanting a LOT higher interest rate (8.25%), and they have a high closing costs/fees (about $3,000), and they won't touch properties below $100k.

nice!  My only issue is coming up with the cash for the buy part. :)

Hey all!

So, I've got 7 rentals at the moment, all leased out, going well, profiting about $2,500 a month net.  My original plan was to take the profit, plus $1,000 a month of my own, and pay down various debt (Car, credit cards, etc.)  All rentals are commercially financed, and are on 3 year terms.

However, going forward, obviously I'd like to get them on longer term loans (15-30 year if possible).

So, my question is, I've found hard money lenders, longer term lenders, etc, have any of use used HML folks to purchase, thrown in a few bucks into rehab, then financed it out with a long term lender, and kept your total out of pocket when it's all said and done to a minimum? If so, how'd it go? What are some of the pitfalls you ran into?

At the moment, I've got a ton of debt I've got to get rid of (Thanks Obamacare!), so I'd like to be able to not have to tap into that $2,500 a month profit if I can afford to.  I do make a good living, so I can bring some cash to the table.

Once debt is paid off, then I'll roll the monthly profits into buying more and more SFH's.

Am I mistaken in this might be a good way to pick up more and more properties with minimum cash out of pocket (once it's been financed under a loan from the long term lender)?  Is there a better way that people like?

Since I have rentals FAR from my home, I would say finding trustworthy, honest property managers and contractors.  

For me personally, I think it was around month 6 of having my first tenant.  She was awesome.  Never paid late, always paid on time, and my property manager took care of everything.  Once I bought my second rental, I knew what to do and what not to do, and then I felt I hit my stride. :)

 No worries!  It does suck from time to time, I agree. :)  But it'll be worth it soon enough! :)

Personally, I like leveraging my money.  Sure, I've got mortgage payments, but my cash flow is WAY bigger than if I just simply bought a place.

I'll give you an example.  Because of a timing screw up, my first rental I bought remotely I had to pay cash for.  So, I cut a check for $40,000 and the place is completely mine.  I've got it rented out for $795 a month, so my profit would be around $610 a month (property manager and property taxes).

However, I took that same $40k once financing was done and bought 3 properties at $40k each (roughly).  Cash flow across all of them was almost $1,000 a month.  Plus, I have 3 properties appreciating instead of just 1.

Warning.  Rant ahead, but in a lighthearted manner. :)

You're tired of hearing "no"?  Do you have any IDEA how many times people have been told "no"?  You've talked to 4 banks in 2 years?!?!  I was told no by 8 banks within 3 months!  Each time, I asked "Why"?  You should ask the same thing.  "Why was I denied?"  They will tell you.  Correct that, and you're in.

I've had crappy property managers, friends telling me I didn't know what I was doing, 8+ banks telling me "no", existing bank that told me "yes" get bought out after I had just 2 properties with them to turn around and tell me "no more properties", 2 break ins, $5,000 worth of unexpected insurance deductibles, city inspection reports that I have to pay for, late tenants, screw up with my CPA that almost derailed a deal, unexpected "repairs" that were clearly not needed that my property manager not only approved without telling me, but was WAY overpriced.  (Ever hear of a $150 mailbox??).

That's just in the last year and a half.  On top of ALL that, my wife is on my case because I won't shut up about how much fun real estate investing is.  She hates it.  It's boring to her.

Now, that being said, just push forward.  Find the reason why they deny you and correct it.  You will prosper, I promise.  You're going to feel discouraged, I know I was for a LONG time, but if you adapt and overcome, you'll get there soon enough. :)

Ok, rant over.  Good luck though!  Keep us posted on your progress!  You can do it! :)

 Hi Lee,

Forgot to quote you on this, so see above. :)  Thanks!

 I plan on holding onto them pretty much forever.  Unless it makes sense to sell them (like say they skyrocket in value and that allows me to expand further), then I plan on keeping them until the loan is fully paid off.  I would LOVE to be able to get into long term, fixed commercial loans on these properties and future properties.