All Forum Posts by: Scott D Burrows

@Syed Ahmed

Great terms, I'd definitely go for that. 

Most commercial terms are much higher or are only that rate for 5 years at a time, with a balloon. 

Definitely jump on it. 

What bank is that with by the way? 

Good Luck,

Scott

@Gregory McKinley

I second @Jay Hinrichs statement. 

Be VERY CAUTIOUS.

-Scott

@Gregory McKinley
I have not heard of them.

Have used RDC Capital in the past and had good luck with them. Ask for Jonathan Surak, he's in NYC.

Good Luck,

Scott

@Rita Solomon-Moore

I have not. A semi-HML I have worked with is RCD Capital, ask for Jonathan Surak, a great guy.

Good Luck,

Scott 

@Ronnetha Darrett

I would recommend to keep calling or specifically request to speak with the commercial loans department. 

If you are speaking with residential loan officers, they will likely be unaware of programs that their commercial counterparts offer. 

Also, it is not the worst thing to get standard loans for properties. You will probably get very good rates, especially considering the Fed just maintained the rates where they are at.

What you should ask, if you are set on portfolio lending products, is to just ask for the commercial department and ask if they keep their properties in-house or sell as soon as they get them. 

Good Luck,

Scott

@Felipe Carrillo

Call @Andrew Postell he is in Texas and is EXTREMELY knowledgeable. 

He will be able to make a loan work for you I have no doubt.

Also, the type of loan you are trying to get is probably called a Homestyle Loan, but it does require occupancy at some point I believe. 

Good Luck,

-Scott

@Hema Dasarathy

Don't pay a house down...at least if you want to grow more... money invested lets just say giving a return of 10%, with a 5% interest rate to borrow would be worth double what the money would be worth paying down. Essentially, you could get twice or double the return as much for your money if you don't pay down.  I did this with my first two and if I had instead put money into more down payments I'd be at 20 properties in four years instead of 8 doors. 

Also, keep in mind that fourplexes are one loan (get 10 fourplexes or duplexes and you have 40 doors). 

Money should be used first for reserves, and then to finance more properties. If you get to a point where you are happy with your purchases, then you could start paying down or putting money aside for alternative investments. 

Good Luck,

Scott

@Hema Dasarathy

Why not just get more conventional mortgages in your husband's name, unless you are both on each loan?

Also, congrats on the progress and great interest rates. Be careful about switching out of those rates, not going to see those for quite a while. 

For where you are at, HIGHLY recommend going to local, SMALL banks ( LESS than 10 locations) and find out if they do portfolio loans or if you need to deal with their commercial departments. However, I would NOT use PML to fund long term real estate holdings, that would be dangerous in my opinion and with all of your assets, I don't believe you need to do this. 

Recommendation:

1. Try to get mortgages in your husband's name, if this is possible ... I'm sure a lender will correct me if this is not possible. 
2.  Contact small, local banks and ask for the commercial lending department and ask if they keep loans in house, so that you can continue to purchase homes at fairly good rates, without worrying about the limit.
   
   1. Make sure to ask how they figure out DTI and make sure they use the rental income to offset the debt
   2. Another option could be to use a few of the homes as collateral and try to get investment HELOC's or Line of Credit (terms aren't great though, so I generally stay away from these options).
3. STAY AWAY from PML for long-term investment property holdings.. quick way to get yourself in trouble. 

Again, Congrats and please let me know if you need anything else.

-Scott

@Hugo Navarro

Call all local banks and ask for either a HELOC or REFI cash out on your investment property. Small banks (<10 locations) should be able to help you. Just keep calling and calling. My guess is after 5-7 banks you will get a yes.

@Andrew Postell is in Texas, he should be able to help you get refi.

Also, another way to fund flips is to use business credit cards and then use a payment provider like Venmo or Plastiq(you can actually send physical checks using your credit card - they charge a 2.5% premium or somewhere around there) to pay the contractors.

Good Luck,

Scott

@Larissa Pacifico

That's awesome. I forgot that his office is in NYC. 

-Scott