All Forum Posts by: Terry Sweeney

@Collin Schwartz Truly inspiring, thanks for sharing!

@Andrew Postell thanks for the advise. I was afraid of going to another lender and hearing the same thing looking foolish.

@Guifre Mora that could possibly be the problem but they didn’t tell me to just wait a little while to refinance. They basically told me I can refinance but it won’t change the property’s value. I just refinanced a year ago with this bank and they appraised my properties higher than what I gave for them due to the work I had done. Which allowed me to buy more properties and rehab them. But now I’m at the end of the rope with the equity I had when I originally refinanced with them. In a round about way they told me I’m not going to be able to force equity into the property by rehabbing them...

@Guifre Mora

I used a conventional loan for all of my properties. The first two I put money down and renovated them. I then refinanced with another bank which is the one I am currently at. They appraised the properties for almost double what I gave for them. So I thought the brrrr was going very well for me. I used that positive equity to purchase more properties to renovate. After renovation I figured I could have the properties reappraised for more positive equity

So I spoke with my lender today and they informed me I had used a majority of my equity from my properties. However, I just renovated two properties in order to have them refinanced to gain more equity for more purchases. When I advised my lender of the work I had done, I was told it won’t really matter. The original appraisal (before rehab) would not change much because the house was purchased at a cheaper price lowering the property’s value? Which I didn’t really understand because I could sell the properties for a significantly higher price than what they are appraised at.

My lender told me to consider a construction loan for future purchases. But when explained, that type of loan sounded better for larger rehabs. But I only buy small single family homes. Is there a better option?

Thanks

@Wyatt Franta

@Tj M.

Thanks for the info guys. I appreciate it.

@Wyatt Franta

When you find a property that appears vacant in a neighborhood not posted for sale. How do you typically get in touch with the owner to see if they’re interested in selling?

@J Scott there is no deal, it's a partnership. The question is, should we keep our LLC separate with 50% ownership. Then just have an operating agreement with the other investor. Or create a new LLC and divide the percentage three ways.

My business partner and I have found another investor interested into going into business with us. Although we would prefer to use him as hard money lender, he would like to purchase rentals with us instead. How should we divide ownership? Should my business partner and I keep our current LLC or get separate one with the new investor? Should we divide everything three ways? Or our company get 50% and the separate investor gets 50%?