All Forum Posts by: Sean Julian

I was just about to close on a refinance loan tomorrow when 2 days ago I received the HUD statement and found out I was paying 10% in loan origination and brokerage fees. Being a rookie I didn't get a statement of fees ahead of time and that's on me.

My property appraised for $82,000 and I wanted to do a cash out refinance but with those fees I can't make the numbers work. That was nearly $10,000 in fees on a $57000 loan and a 6.35% interest rate. I knew going in I would pay more because the property was bought in my LLC, but $10,000 is too much.

Would you all have a suggestion or two on who to reach out to next to try and get the refinance done? I am keeping the property in the LLC so it needs to be a lending institution that will lend to an LLC. The property is in South Bend, Indiana.

Thanks ahead of time.

Respectfully,

Sean

@Whitney Hutten I did. I just got my terms mixed up. That’s what happens when you post at 11 pm. Lol

Thanks for the correction - oops  

In July I bought a house for $42000. By September I had $21000 into it for the rehab. In October I started to receive rent. And I just got the appraisal back and the property appraised for $82000 and I'm getting a 70% LTV loan which is about $57000. My return on investment will be about 90%.

42000

+

21000

=

63000

57000

/

63000

=

90%

Not bad for a first BRRRR.

Just make sure you take into consideration our high property taxes when doing your math. If the property is in a MUD you’ll have that tax too. 

@Zach Westerfield good advice, thank you. Unless my real estate investing “career” takes off, I won’t be investing in my local area as it’s just too pricey and taxes are too high. So, finding a lender here won’t be much help. But I like the idea of working with the local companies.

I have been using Bank of America as my business checking account for my rental property.  They just raised the minimum balance to $5000.  When I have more than one property, that'll be fine, but with just one property, it seems to be a waste of money to have cash in that account instead of an interest account.  Do I switch accounts to a local bank, an online bank like Blue Vine, or stick with what I have?  Thanks all!

My rate is 6.5% but that has mostly to do with the value of the house (mid $80’s). 30 year fixed. 36 month restriction on early payment then ok. 6 month seasoning period. 

I am in the process of refinancing my first BRRRR. I chose to put it in an LLC first and the refinance has been more challenging but not impossible. The interest rates are definitely higher then if I would have kept it in my name. My attorney and financial advisor both convinced me to go LLC first, and we can all spend hours arguing the merits of that decision but I think it's worked out just fine. Ion capital is who I'm using if you need a mortgage company.

Try ion capital. Not the best rates but pretty open to working with investors.