Laura J's Journal

Greetings! Yes, I know everything will work out on the flips...sometimes it just takes longer than you like! The importance of moving flips fast right now is the new flood of housing that is going to come on the market, plus winter (traditionally dead month in RE). Hence the sense of urgency not to be stuck with a vacant house!!!! Investor nightmare! Both are now on the market and I am thinking positive about sales on both. But if not, the next strategy is to lease/option, which will not be hard. I would just rather pull my money back out asap and move on to better and smarter projects

Always touches me that you stop by and say hi to me It means so much, as I always repeat, to have such great RE friends to keep in touch with and keep me on track! Thanks my friend

Ok, since my last post, things are set to close on Flip #1 on the 14th. Hallelujah !! Flip #2 is still on market, we lowered the price. Flip #3 is FINALLY done and on the market as of yesterday. In a very desirable part of town so of course anticipating a quick sale
Friday I gathered my courage (and personal financials haha) and hit the banks in town. Right now the only product offered is a 3 year balloon which stinks as far as pulling out money on my long term rental props. So I hit the streets and knocked on doors. Five bank total. Three gave me about 30 seconds of their time after I sat in the lobby for 20! Incredibly rude. One even said no offense - but you're on the bottom of the heap as far as lending goes. The fourth one I had to leave some info for someone to call me back. The fifth, which of course I almost skipped - was awesome! Super nice guy - we talked for about an hour, and he even called in another guy in the business banking section. They ended up suggesting a business line of credit! Which of course I am very happy about. That way I have access to money and only pull it out as I need it. So of course I'm all excited - provided them with a mountain of information all the way back from the time I was in the womb haha - and will get their decision today or tomorrow. Then yesterday the bank I left my info with called me back, and I am on my way into a meeting there as soon as I sign off here. But they offer long term cash out refi loans, plus rehab loans! Gee, I just happen to have a rehab house sitting empty waiting for rehab!!! So two out of five aint bad people!!!! And I have to say a big thanks to Randy who encouraged me to get out there and do it. Turns out I look better on paper than I thought I did when I put things together
Well, gotta clean myself up and go walk in there as the successfull real estate investor I am and impress the heck out of em hahaha. I'll let you guys know........

way to go! i admire your courage and i'm so glad you did go into that 5th bank. reminds me i have to be brave too!

just think if u hadnt gone in to bank # 5 ?? that is what it takes to be a success !! AWESOME !! an abundance of opportun ity from this one encounter !!
keep up the no stopping you determination !!! thats great .
jay

you go girl! i'm working on my sfl this afternoon now that i finally have a little time.keep moving forward,rob

Hi Laura,

Very exciting stuff about you hitting the pavement for the bank financing. Its pretty cool to see you out there turning over those rocks. Sometimes there are just worms! Then there is bank#5.
I was just re-reading some advice that you added to my journal on June 17th and was that ever good reading! It was about the lows and the highs and I sure have been living that!! Its so encouraging to know that I am on the right path with REI. Super.

Roger Schafer
Jaguar Investment Group

Good going with the banks. This is great news!! I can't wait to hear more about how it goes with the refi PLUS rehab. YAHOO! Nine days till closing but whose counting LOL! I'm keeping good thoughts for for you for quick sales on the other 2.

Lea

That's what i'm talking about my friend! Two out of five banks aint bad huh! See, if you would have given up on bank #5, then you probably would not have made a golden contact with the bank. The fact of the matter is, these are people just like you and me, and sometime you just have to put things into perspective in a way that can be a win/win situation. Sometime the banks only see us as coming in there and borrowing money, but we have to demonstrate to them that not only that their investment is secured, but their investment in your business can grow ten times more. I'm so proud of you, and now go out there and make it happen. Congratulation on your flips and yes, keep that fire burning baby!

Lloyd

Hey Laura, great job!! I see you used my philosophy ( never ever give up )
You never know what one person will say from the next, and sometimes you can rerun the coversation in you head and think of something you should have said and use it in the next bank. Its all a learning lesson. I will give you a call before the week is out. I have a lot going on and not much time to do much of anything else.
keeping my fingers crossed on the flip for ya.
Richie

All I can say is WOW!!! I am sure glad you kept going and achieved so much at bank #5. I am intending to approach several local banks here too. Your example will surely help me get through the disappointment I may receive. Thank you for sharing your experiences. I am eagerly awaiting your next installment.

hey girlfriend! thanks for stopping by It did take alot of courage for me to do those walk-ins...but what a great feeling of empowerment once I did! Thats the thing with all our challenges in real estate. Once you break through that fear barrier - watch out!!!

Yes - its amazing what things happen when you get yourself out there! I'm pretty astounded that I ended up with two banks wanting to work with me! Thanks for your encouragement and support my friend!

Always nice to see you greeting me when i sign on Glad to hear your moving forward on your deal! Keep up the good work!

Thanks for taking the time to post in my journal! And I'm always really humbled when I'm told anything I've said or done has inspired or encouraged others - so thank you for kind words Yep - this business is full of highs and lows...but all of us here at DG are strapped in tight on that roller coaster ride to success haha! Keep up the good work!

Yes - having the banks want to work with me is very exciting! And you are too funny counting down to my closing haha!!!! Got the call from the Title Co. with time and place so I'm feeling really good about it. I dont allow myself to celebrate fully until papers are signed and check is in the bank! So close now I can taste it though!

How the heck are you my friend! I miss you! You know, you have been talking about successfully getting the banks to work with you in your journal for a loooong time. And I would read, and wonder how does he do that? Well, duh. I KNEW it was that you got out there and knocked on doors and sold yourself to them, but I just couldnt make myself move past my own fears and DO IT! So with all your experiences in my head, and encouragement from Randy - I did - and look what happened! I regret not doing it before now - but will leave that behind and just move onward and upward! Thanks for all your inspiration!

Yes - you are the ultimate example of NEVER EVER GIVE UP! Great talking you, and I'm glad you are continually getting closer to getting your firs unit complete and rented! Once that first tenant is in I'm sure all the things you've learned from getting that unit ready will make the second one easy!

Nice to hear from you! Yes, the bank experience was a big challenge for me. Rejection is something I've always taken to heart, but am learning in business not to take it personally, and just move on to the next. And when you do get the YES its awesome!

Ok - NEVER did I dream I would have the dilema of choosing which bank to work with!!! But I seem to find myself in that position. In my post above, it was Bank #5 who first worked with me, and took all my info to seek approval for a business line of credit. In the meantime, Bank #3 who I left info with called me back. I went in to meet with them, and they approved me for two cash out refis at 60% loan to value on two of my rental props. Awesome, right? But then Bank #5 contacted me for a little more information to process credit line. Of course to obtain that, they are basing it on the fact that my rentals are owned free and clear as their collateral. Then Bank #3 contacted me to say they ordered the appraisals on the two props. Wow - never expected them to move that fast! So heres my problem. I wont hear back from Bank #5 till end of next week. While business line of credit with them is first choice, I sure dont want to back out on Bank #3 before its locked in. So what the heck do i do now? I dont want to be deceptive in ANY way, and of course dont want to burn bridges with either bank. Any ideas what I should do if I hear further from Bank #3 next week?????
Hope everyone has a fabulous weekend

Hey Laura, I am so glad to hear the progress you have made with the banks.
I would see who gives you the best deal and go with them. You can also split it up and do one property with each bank if both have good offers. That would keep both connections open and happy. Just food for thought

Let me know how it goes, I love hearing from you and talking REI.
Keep charging forward my friend!! You are doing amazing things and I love having a front row seat to witness it.

Richie

i would find another deal to refi or get a line of credit on with no closing costs and low interest and use as colateral and use both or find a way to use both as the opportunity is there and u dont want to lose it.AS RICHIE said do both ...one with each. refi with one and do a line of credit with the other.
I have opened up a few lines of credit with credit unions and banks.some credit unions believe it or not just requires you to be a member of your community.i just did a line with the duplex i own, I bought the duplex with personal home equity so i owned it free and clear then i got a line of credit with 80 % of appraisal and no closing cost and used it as colateral. then used the money to buy another and or pml.
i would like to add that it was a bank that turned me down in one town and i went to the same bank but different town 50 miles away and got approved for 43000 !!! as you know it is persistance and just DOING IT non stop . not taking no for an answer !! like u did laura !! never give up --bc !!!

jay

Who would have thought you would have ended up with this kind of a concern the day you approached these banks I like Richie and Jay's advice. It keeps your options open

Lea

I want to reiterate what Richie and Jay and others have said, use both banks!! I am hoping to have the same dilemma or should I say advantage of two banks to work with. Keep on trucking Laura. I am surely glad to have a front row seat along with Richie. Yes, Laura, I am impressed.

Thanks for your advice - I almost pulled it off!
Turns out today i got a call from Bank #5, turns out I looked really good on paper to the two commercial loan officers in the bank, but not to the underwriters. Seems that even with my track record in two years, and property value - I didnt show enough cash flow on last years return for them to ok it. Dang it! I have a very excellent and creative accountant who knows how to file in such a way I dont end up paying much in taxes, but turns out that hurts you in this banking situation. The loan officer actually told me that. So next year I will speak with my accountant to see what we can do about that By the way - Bank #5 was NOT a small local bank - so I am pretty happy that I looked good enough for them to consider, anyway!
But in the meantime, I will now cash out refi on the two props with the credit union, and I asked them today to check into a credit line as well, which they are doing.
Jay - I'm wondering when you said you've opened several...can you open multiple lines of credit - each one against different props?
So thats my banking story to date! Appraisals will be back in another week and then I will get a closing date.
But in the meantime I close my flip this Thursday...yahoooooooooo!!!!!!!

Hey Laura whats going on.....Well actually I am witnessing whats going on and I am so happy and proud of you. Hence the subject.....the life you are living in the world of REI is full of morals like not giving up which stands out with your episode with the banks. If we were to go back to the beginning of your journey which you have so welled documented in this journal it would have to be a top seller and a true guide to success.
Banks are the way to go it seems. I have so much to learn I feel like I am behind the times, but at least when the time comes around for me to walk into those banks, I have your experiences to guide me.

Keep on keeping on and I will see you at the TOP!!

Regards,
Shane

hi laura,in response to your question......... my lines of credit are from going in to each bank and credit union and talking to the loan officer to see if and how much i can get.i just fill out an app.as you know you have to have a few weeks pay stubs,2 yrs tax returns and the application.anyway i went to local banks and filled out apps.even if you get 5000 or 10000 .anything to start then as you use it and create on time pymnts.....calll up and ask to raise the limit.i do this with my credit card every 3-4 mnths.sorry getting off your question.yes you can use the equity from each prop for a line of credit.buttt you have to find a bank that does no closing costs AND no cost for the appraisal if possible.i used key bank for my last one.i went to my local in town bank and they would not do it so i went 50 miles away to the same bank /dif town and they did it. It depends on who you talk to there.the loan officer was an investor himself so i think that was the ticket.i guess its dont take no for an answer to success !! great going laura i know you never give up !! thanks richie for the quote !!
jay

Shane - great hearing from you my friend! Ahh...the ups and down of RE!!
Jay - thanks for the great advice and information. I REALLY appreciate you taking the time to post for me
NOW...here was my day......
THE GOOD: The credit union has approved me (so they say)for a 30k business line of credit along with my two refi loans. So thats awesome, but I'll really celebrate on signing day!
THE BAD: all pumped up for closing tomorrow, and I get a call its off. Why, you ask? Because the night before closing SOMEONE realizes that for FHA you need two appraisals!!!! So the lender would not release the funds. Argh!!!!
Thus the heading of this post!!!!!! So now we have to extend the contracts, order a second appraisal (that I pay for) and wait. Maybe another week or more. SOOOOOOOOOO frustrating!!!!!!!!!!
Ok - I have to go do some deep breathing and yoga and calm down

Hey Laura, Good grief wouldn't you think they'd have at least a check list or somthing?! It's a temporary set-back and will be behind you sooner than it feels.

You did GREAT with the banks. That is a big accomplishment!

Hope the deep breathing and yoga helped.

Lea

WOW!! That is one I will store in the memory bank 2nd appraisal for FHA loans. How did they miss that one.
But on the bright side the deal is still on and you did get a great victory with the credit union. I am sooo proud of you Laura. great going, you just re motivated me to get after the banks again
Talk soon
Richie