Pulling Equity
I have 21 rental properties and 2 of which I have pulled the equity from. All of the other properties are free and clear form financial obligation. God has opened the door with in the city where I have people calling me to purchase houses for pennies on a dollar. When I say this that is exactly what I mean. Some even as low as 500 -1000 dollar homes. I am in need of pulling together some quick cash for these adventures. I am very excited as the more I look around and see the developing that is taking on in this town the more I see the effect of the appearance being improved with-in the city. I currently have my personal home mortgage with Washington Mutual and am not delinquent nor have I been. I am wanting to come up with some form of business plan to be eligible for a LINE of CREDIT. I have been informed here that this is really the way that I am going to have to go with having so many properties. Can you assist me with any other advise. Along with the 21 rental I have my personal residence and a Church in IL. my credit score is not the greatest this has been some what of a situation. However I do know that someone somewhere is willing to assit me on this journey. advise is appreciated.
You might want to check with WellsFargo personal banking. They have a program called private-banking. The requirement is either you earn > $200K/yr or > $1 mill net worth. I did not check the detail b/c it does not meet my needs. I believe you can have one loan for multiple properties and you can take out equity easily.
Thanks I will check into it. please let me know if you have any other ideas or suggestions. I will still be open to them. I will also let you know what I find.
Go to your local investor club and ask around about an investor friendly mortgage broker.
[addsig]
Hmmmmmmmmmmm.......... Went down that path long ago. The local investor club for my region has a link on this site, however, has never responded to my requests for details relative to membership, etc.
I have hooked up with a local bank that claims to be "investor friendly", however, the latest attempt at funding this loan was killed by an underwriter who apparently is not investor friendly. Of course, I have never met or worked with an underwriter that I would call "investor friendly".
Find out when the meeting is and show up. Sometimes the club administration is not that great but the members and people who attend are.
[addsig]
Good point, everything thing should be cost/benefit analyzed, especially time. As a mortgage broker doing 10-12 loans a month, corporate officer of an investor club that has three monthly meetings in three counties and own and mange 36 units, I have very little "free time" =)
That being said, I would still go the club. I have bought 8 units directly from relations made through my investor club, got several loans, met my CPA, and made several friendships along the way. Use your best judgement on what your goals are and determine the most efficient steps to achieve those goals. I am refinancing a triplex of ours right now and puling out 25k, not sure how much equity you have but if I needed to drive a few hours to pull out that much cash, the analysis is simple.
[addsig]
Thanks very much for the insightful comments.... I appreciate the suggestions!
In our area I wouldnt pay anymore than 2k to close a loan, then of course the normal stuff that you will probably split with the seller. Look for BS fees, and question stuff if you dont understand something.
Wouldnt the closing costs depend on the price of the property?
The price of the house must be low to only have to pay $2000.00. I just closed a 1,047,000.00. Without any fees and the costs wher over 20,000.00. So do not go by the $2,000.00 figure.
Laurie
The price of the house must be low to only have to pay $2000.00. I just closed a 1,047,000.00. Without any fees and the costs wher over 20,000.00. So do not go by the $2,000.00 figure.
Laurie
[addsig]
The price of the house must be low to only have to pay $2000.00. I just closed a 1,047,000.00. Without any fees and the costs wher over 20,000.00. So do not go by the $2,000.00 figure.
Laurie
[addsig]
How much would you expect to pay on a 300,000 house?
I pay about 1800 up to 500k, I dont put million dollar properties....so yes compared to your suggestion I buy cheap houses.
Would you mind breaking down what specificly I should expect to pay when closing? and what not to pay? I just worried that they may try to throw in all sorts of fees which I wont know if their required or just them trying to make some extra cash.
You need to start by deciding how much you want your lender to make and work from there.........
Here are a list of legitimate fees you can expect:
Origination Fee.........................0 - 3% This is negotiable
Appraisal Fee............................$350.00
Credit Report Fee.....................$11.00 - $20.00
Processing Fee.........................$300.00 - $600.00
Underwriting Fee.......................$450.00 - $999.00
Wire Transfer Fee......................$25.00
Pre-Paid Interest...........1-30 Days worth(Depends on what day of the month you close)
Escrow Fee..................................$700.00
Document Preparation Fee.......$100.00
Notary Fee.....................................$60.00 - $100.00
Title Insurance..............................$850.00 - $1000.00
Recording Fee..............................$60.00 - $150.00
If you are setting up Impounds you will also need to pre-pay 12 months insurance and 6 months taxes.
Looks about right.....of course I think notary fees are BS but it has to be done and they charge for it.
Hello EX...Nice to meet you!
Try contacting Lehman Bros. or WAMU I know they have a program rnning for the last couple of yrs. or so for Jumbo/Upmkt Property financing in land trusts.
Also Marty Weisberg at www.LandPartners.biz is a good resource for obtaining pvt. dollars to fund your deals in land trusts.
Hope this helps. And Happy Lending!
Derrick Ali