Refinanceing with Bank of America

[OKRICHLAND]

Thank you for helping me to get started in real estate investing a little under a year ago.
I now have close to 10 houses.
I only use equity lines on two of them that I have previously paid off.
I have an investor friend that wants me to start refinancing with Bank of America.
He has been dealing with them a little less then a year now and has been investing
for about a year although, He is knowledgeable in real estate and different ways
to finance the various deals.
I am currently using a mortgage broker for all my refinancing.
On my houses that are around $50,000, I am paying
approx $2,500 at each refinance closing.
The bank is telling me that I will not have to pay any closing
if I start with a line of credit after I have the house ready
for appraisal, pay my original bank for the initial equity line loan that I got
in order to buy and rehab the home.
Once I take enough money out of BOA's line of credit on the house
(80% to value) They will roll it over into a 24 year fixed rate.

What is the problem with this if any.
It seems that I am only saving thousands on closing costs.
They will do up to 10 loans.

Is there a snag in the fine print that someone with your experience
might be aware of ?

Why Do some people call them "Scum of America? :smile:

If my friend who has many loans with BOA and has mega-bites
of real estate knowledge is heading down a road
to destruction, I don't want to follow the same path.

[Dan Auito]

It is as it appears Dave, B of A or BofA is a good outfit, I've used them for years and you aren't missing any fine print my friend. It used to be once you had four loans you were done, until you packaged those up and refied them with someone else, only then could you go again. Not sure if that has changed as of late.

[OKRICHLAND]

It is as it appears Dave, B of A or BofA is a good outfit, I've used them for years and you aren't missing any fine print my friend. It used to be once you had four loans you were done, until you packaged those up and refied them with someone else, only then could you go again. Not sure if that has changed as of late.
It's sounding better and better Dan.
As you are aware of the program that I'm speaking of, are the interest rates
on this particular line of credit any higher than that of a traditional refinance?

[Dan Auito]

In my experience they are very competitive Dave. I don't think you would regret it. What I would suggest is that you ask to speak with a vice president in the business banking dept. Don't settle for less. These people are decision makers and don't have to answer to many to give instant approvals. It's nice to work with the power brokers! Don't settle for less!

[OKRICHLAND]

Dan, you're a man after my own heart.
The relationship that I have been so blessed with in my currant
banking adventures has always been with the vice president himself.
He's actually the one who sat me down in his office and explained to me
the ins and outs in the business of investing.
This, just walking in off the street.
Now I make several closings a month.
It's plain to see just why he's vice president of the bank.
I was going to go through my friends loan officer but as for now,
I think I'll bypass my friends contact at BOA and go straight to the VP.
In fact, I think that I'll make it my hobby to hit every VP in my local area.
I never even considered that until you just mentioned it.

Thanks for the tip.

[Dan Auito]

1,635 Man I'm sorry Dave , I've been slacking! I'll try to do better. You ain't so bad yourself bro!:praise: