All Forum Posts by: Thomas Fortune

@Darren Eady- I don't have final terms. This is not something i've actually setup, just something my banker mentioned in a discussion about lending options. 

@Mike Makkar - If i'm understanding you correctly, 75% LTV would mean you could borrow 75k off of a 100k portfolio. That's different than what I was describing above in getting a 250k credit line against 100k in cash. The rate you are getting is incredible, but the max loan amount seems quite a bit different - am i understanding this correct?

@Darren Eady- Not a credit union, it's a community bank in my area. I don't think they do out of town loans, but if you're interested I'll PM you the bank name. I don't recall the exact rate (I haven't pulled the trigger on this yet), but i think it was somewhere in the 6% range. 

Anyone using cash as collateral for a line of credit? I've got a local bank that will provide LOC that's 2.5x the cash amount (100k in cash gets you a 250k credit line). Curious if others are getting better/worse offers...

Fannie Mae guidelines require 6 month seasoning for cash-out refi. Since you are looking for a blanket loan for multiple properties, there won't be a fannie mae restriction and it will be up to your local bank (or whatever lender you use) to determine timing on when they will lend, and how much they'll lend. My advice is to call local banks and talk to their commercial lending department - any track record you can show as a landlord (apart from these recent acquisitions) will go a long way in getting approved.

For those that have fired contractors, what was your breaking point? Particularly when dealing with a contractor who is late starting (or finishing) a job - it often feels like a rock and a hard place. Options are to fire them, and deal with the downtime of locating and scheduling a new contractor, or try and make the best of a bad situation with current contractor. What have you done?

Looks great @Todd S. - where did you source your kitchen counter-tops, and do you mind sharing the cost for those?

Looks like an enormous amount of rehab work is needed. On a scale of 1-10, with 10 being tear down and rebuild, this looks like a 9. If you are new to rehabbing i'd skip this deal and look for something a little easier...

For the folks who regularly buy at courthouse auction - how have prices changed in last 6-12 months in your market?

Attended a sale today in which a property that I was sure would have sold for less than $75k ended up going for $88k. I haven't been to a ton of these...so I'm not sure if this was an outlier or the norm.

Just curious what others are seeing in their markets right now!

I love MMM. As far as how his view impacts RE - you have to separate personal finance from business finance. @Angelo Behar - your $5k expense isn't really an expense, it's an investment that ultimately makes you money. MMM is against dropping $5k on things like a bmw down payment; but celebrates putting that money to work making more money!

For folks doing rehab projects with partners, I'd be interested in hearing how you handle some of these aspects:

1) At what point do you legally form the partnership? Before making offers? (ideally i'd like to be able to place properties under contract, and THEN handle the partnership setup ...just not sure if that's the best route)

2) What entity setup do you use? (llc, or something else?)

3) I assume you create a separate bank account to match the LLC?

I've always done deals solo, but getting to the point where I'd like to bring a partner in for some of the projects I'm doing, and just need some pointers on doing this is the most efficient way!!