OfflineToday I talked with my banker.
The topic: how much and how fast we could move this year. We have $250k in loans with them, and we're looking to hit $1 million by the end of the year!
This bank will do a max of $12 million, but needs to see performance of existing loans reflected in tax returns before moving forward past the $1 million mark...
How did we so quickly get to this point?
#1 We presented pro formas on each property with NOI. Banks like evrything laid out for them, it males it easy to give a thumbs up on a loan.
#2 Our first loans had DCR of over 2.3. My main partner didn't have their tax returns in, but they approved it anyway! Basically they did low doc loans based just on the great numbers. DCR is the Net Income divided by the Loan Payment... that ratio is the key to a conservative loan.
It takes time to build up into the multi millions, the key is having the systems in place to make it happen!
Are you using a private hard money lender or conventional? What kind of down payments did you have?
The goal of bank financing is to refinance with 100% Cash Out.
Banks start with partners who have CASH, who demonstrate they buy with cash and get refinancing. IF you bought with Private Money and then tried to cash out, and the bank said NO, you'd be stuck in a sticky situation. We have several refinances under our belt, so we are NOW using private money on our next few deals!
Thanks for reaching out Mark! Look forward to networking with you
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
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