Finally we closed on the loan with B2R. I don’t want to go on and on about the experience yet again, so suffice it to say that the loan is done and we are done with B2R! All payoffs for the loans have been either been sent already or will go out today. It is great to have this behind us and we’re now on to refinancing the remaining Jacksonville and South Bend properties, as well as one in Florida.
B2R Updates: Got a call from them last night, Hunter is kind of helping push this thing through and what happened was, about a month ago, when Kevin and I signed the papers, the package went to the final underwriting and they wanted to go back out and have the appraisals looked at again. And so they sent each appraiser a whole list of questions and now they wanted on every single one of our homes are being refinanced. In the end, in this week, I think those were all finished in Friday of last week and so what Hunter told me was none of the appraisers changed their opinion and all stood by their numbers which is great and now they’re just trying to push through the last piece to the credit approval process and so I believe I’m going to have the answer tomorrow morning as to green light and its certainly is sure for me that its gonna go through some pressure on one thing or another, not the rate, but maybe the LTV would be likely reduced and he feels he can get it through, he is working with his boss and they feel they can get it through as is but if not it may slightly reduced, at this point we can get it done and its gonna be approved the next day or two.
B2R continues to be a thorn in my side. Kevin and I signed all loan documents on Thursday, March 24th, but because of their mistake of preparing 5-year term paperwork instead of 10-year, they are running it through one more final stage of underwriting. They requested clarification on items from their appraisal service last Monday and are awaiting those answers. I expect no issues, but the delays involved are nonetheless infuriating. I continue to follow up for updates and will let everyone know when we have a solid close date.
B2R has finally and we have come to the finish line, but we have credit approval and answered last couple of questions from our title company and looks like we have papers sent to us the next day or two. So fortunately, that will be done very soon.
I have to get these 2 loans done, the B2R and Barnett. I think were close to finish on those, were working all morining on Barnett on about a hundred pages of loan documents that we have to sign and get to them by Thursday (March 17) to close on that one. Then B2R is coming bak with more questions and finishing up that and I think were very close on that one too, but as soon as those are wrapped up, we can talk more about how to arrange things in North Carolina. As far as that goes, it will be we could buy down some of his equities or buy some of the 20% upfront that he has on the PM. We jsut need to figure out exactly how we’re gonna structure it. I’m sure we can work something out.
Renegotiated terms with B2R.
I received an email from our awful “Relationship Manager” early last week in which he told me that B2R needed to re-price our loan from 6.45% to 7.00%. Needless to say, I was a bit upset about this, as absolutely no justification was given for this change. Furthering the insult, the moving index on which our final rate is based has actually decreased by about .4% since we received our initial rate sheet. This means that B2R was effectively boosting our rate by almost a full percentage point. Unacceptable.
On B2R, the only thing I am waiting on is property management agreement and questionnaire from the folks on Birmingham, for the one home in Cordrey Court. I talked to Eddy, our PM there today and he is going to fill it out and send it out to me today. I’ll wait for that and wraps it up as far as on what I’ve asked to do from B2R. Then we just move to the close and I’m going to continue to push and were definitely on the home stretch.
The final appraisal for the B2R refinance is finally complete and we are moving quickly toward a close date. I am pushing for as soon as possible, of course, but the pace is dictated by B2R. Having gone through this process twice with B2R now, I am even more inclined to finalize our next round for the South Bend and remaining Jacksonville properties with either Colony American Finance (10-year balloon) or Lima One Capital (30-year fixed.).
Our final three appraisals are scheduled for this week for the B2R loan and we should close prior to the end of the month. We have already begun the process for the remaining homes in Jacksonville, (as well as the South Bend properties.) Lou Ellis estimates that he will have all of our current projects finished by March 1st, including the remaining duplexes.
Will be completed by 1/12
B2R refinance completed by the middle of this month. I still don’t have the appraisals back on any of them, but have asked again. Unfortunately B2R has changed the process for information flow and I do not have the access I had the first time around. Regardless, this is the crunch time and I intend to push hard to get this done before the end of the year.
The only remaining homes to be put into the next B2R loan, will be done 2 weeks after that.
As you might know, we have purchased 16 single family homes and 24 duplex units in the past 12 months and currently have more than half of these rehabbed and rented. We have 8 of these units already refinanced and another 17 currently in the process with B2R. The remaining houses/duplexes should be complete and refinanced in the first quarter of next year. That is a total of 40 units in approximately 15 months … a stellar performance by our Ground Partners Lou and Barbara! Suffice it to say that everything is going extremely well in Jacksonville.
Refinance – We signed up for our next tranche with B2R last week and expect to close on the following properties in about 75 days. We expect the loan to be in the neighborhood of $1 million, with a total value of $1.4 million and an LTV of 70%.
Section 8 hopes to have it rented soon.
Date of Purchase