Posted by DavidV on September 04, 2003 at 22:49:04:
I think JT (IN/OH/FL/ ?) let his secret out of the bag. He has this new super loan … the pot folio, that no one else has found out about yet. 
Bought 5 Now What - Posted by Chris Sulivan
Posted by Chris Sulivan on September 03, 2003 at 15:55:08:
Hello All,
I have purchased my first 5 rental properties, and all is well thus far. However, I spent a good portion of the cash I had on closing costs (the deals were 0 down). The properties are cashflowing well (125-200 each), but I need to keep this $ for vacancy/repair cushion. Any suggestions as to how to push forward and aquire more, with the assumption that I will need SOME cash to close?
Talk to your friendly Banker… - Posted by JT-IN
Posted by JT-IN on September 03, 2003 at 19:16:08:
Chris:
Select one or more small commercial Banks in your area. Prepare some documentation as to your current properties performance, showing basically how well you are doing… Also prepare a Net Worth Statement, and an Income Statement; if you aren’t sure how to do this correctly, you may want to pay an Acct to do it for you, because professional, correct docuements are really important here.
Make appts with “Commercial Loan Officers” only. Do not waste your or their time speaking to anyone but a commercial guy. When you speak with them on the phone, let them know what you are doing and ask if they make “Potfolio Loans”… ? (Key question here…). You are seeking a Bank who isn’t going to SELL Chris’s loan 10 minutes after closing. You want a Bank who will keep your loan in their portfolio of loans. Why, because their guidelines will be much more lenient on these for an Investor… and that is you.
Also prepare a brief business plan, being very careful and making certain that everything you say in the plan is credible and complimentary. Some folks will put something in their plan like… I want to own 87 proeprties by the end of next year… Well, the Banker will send you down the road to his competitor, for when the investor gets overwhelmed, and goes under… Make sure that what is identified is doable, and depicts good, sensible business judgment…
Simply demonstrate to the Banker that you are on your way UP, not OUT… You are credit worthy, honest and you have good business morals and sound judgment… and you will be starting what may become a long term relationship…
Wish you good luck here.
JT-IN
Re: Bought 5 Now What - Posted by RichV(FL)
Posted by RichV(FL) on September 03, 2003 at 18:13:17:
Chris,
Congrats on your new properties and cash flow. They sound like winners to me.
I like your way of thinking. You NEED reserves for rentals! So do what you are doing and hold on to some cash.
I am with Ron on lines of credit and credit cards. They can be a great way to come up with cash if needed quickly.
Great Success,
RichV(FL)
Re: Bought 5 Now What - Posted by Ronald * Starr(in No CA0
Posted by Ronald * Starr(in No CA0 on September 03, 2003 at 17:41:51:
Chris Sulivan----------------
Nice to talk to you.
Congratulations on your deals. Sound good to me.
I wonder if it might be well to sit back and coast for at least a while. Maybe 6 months to a year. Meanwhile, work on your rental application form. Work on your rental agreement. Do any physical work which the properties might need. Study books on property management. Consolodate your position before you start heading for new heights.
Meanwhile, save your money. Perhaps cut back a little on consumer spending if you can. Perhaps apply for a couple of credit cards or bank unsecured peraon lines of credit. Check the local banks and see who has a good deal for you.
Study some more on the no-money down approaches and see if you find some that reduce or eliminate the cloasing costs.
Good Going Guy/Gal. (Darn these non-gender-coded first names.)
Good InvestingRon Starr****
Potfolio Loans? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 04, 2003 at 11:16:46:
JT–(IN-OH)---------------
Now if the banker does not do pot folio loans, should
Chris Sulivan also ask if they do portfolio loans?
Good InvestingRon Starr**