All Forum Posts by: Tim Desselles

I would get them under a new lease regardless of if you have to or not, so that it has your/your company's name on it.

@Patrick Michaels there’s a water treatment plant near there on river road, I’m sure you know the one. It has made that stretch a little difficult for residential.

Hi @Seth Matherne , I'm a BRRR investor in greater BR, properties in EBR, WBR, Livingston and Ascension. Welcome to the club!

@Dan Gerding if you decide to rent instead I know a great 2/2 condo in the Marigny that might be available 😄

The Air BnB option is very restricted in some areas by a recent ordinance , particularly the French Quarter and the Marigny. It’s wrecked a hot sellers market, you might be able to find some relative deals there.

@Shane Colar Hancock Whitney commercial loan group was slow but got it done, no seasoning period for a CL.

@Ryan O'mara, you surely know that business better than I do, but I have used two small local banks recently and there were no seasoning requirements for entity properties.  This is one reason we purchased those properties in an entity to start with, the commercial lending side didn't have a seasoning requirement.

You want the property, the insurance and the loan in the LLC's name. You're going to be running a construction site in a residential area, you need to keep your personal affairs separate from the entity so as to shield yourself from any unfortunate liability situations. Most banks won't write a consumer loan in your name if the property is held in an LLC. It's a little tougher but a lot cleaner and safer to do it in the entity all the way through.

@Tim Bradley another thing, with commercial loans there is often no seasoning period. The seasoning requirement comes from Fannie Mae, so it will be included on most all consumer loans so that they can be deemed “conforming” and eligible for sale at a later date. Commercial loans don’t have that requirement unless the bank imposes it in their own lending criteria.

The smaller regional banks are often better/easier to work with.  Locally here in Louisiana I have used Hancock Whitney and Red River Bank.

Normally I would say that if the tenants are paying the rent, who cares what the market value is since they are being held in the portfolio. I had 2 properties in 2008-2009 that cash flowed just fine and it was nothing to worry about. The trick with BRRRR is if you are doing your projects in an LLC (like you should be), then you have to get commercial loans. CL's typically have to be renewed every 5 years, although the amortization schedule could be much longer. If you have several renewals come due during a market downturn, you could be stuck with the bank not rolling your loans, not enough cash to pay them off, and no buyers at reasonable prices for your properties. This happened to many people in 2008-2009. So keep your loans staggered, keep lots of cash on hand by getting as much back from every project as possible, and make sure you find ways to get great tenants with resilient jobs. Easy to say, tougher to do.