Lending Help in MN.

2 Replies

Hello Bigger Pockets!  Josh, thanks for putting this network of people together.  I do have a question.  I bought a house in college and kept buying things on the side while having a full time job.  Right now I have 33 "things" mainly condos that are mostly paid for.  I would like to get to 100 paid for units in the next 17 years but I am running into two problems.  

1. It has become harder to find good deals on condos or even multi unit buildings.  Thoughts on this?

2. I have paid for everything cash because lenders seem so hard to work with.  Every time I tell them what I am looking for they say yes the can do it but then send me a 20 page document to fill out.  Does anyone have a contact who would be interested in lending to someone in my situation on a line of credit situation?  I have good cash flow and a very high credit score.  

Thanks in advance for your response BP!

Hi Brian,

Welcome!

1.  Multifamily units are in style right now.. time to adapt your strategy.

2.  Much of the massive list of disclosures are government mandated forms that they are required to send you.  The massive list of info that they need from you is also apart of the "conforming"  mortgage market as Fannie Mae and Freddie Mac require that info to purchase the loan on the open market (which don't forget is why mortgage rates are so low).   Now those two are so huge in the market that even many of the portfolio lenders that do not sell their loans to those guys follow along in a broad attempt to meet their own underwriting standards.

All that is to say....If you want their money then  you have to play by their rules! as annoying and stupid as they seem.

Alternates are money partners, hard money, finding investors, and there are some online crowd funding options.  MY opinion is that most of these will cost you for the convenience of not going through traditional mortgage underwriting.

Personally, I bite the bullet, have found a mortgage broker that I don't mind working with, and look at it as input cost for me to boost my returns.

I'm sure other people will have all kinds of other creative financing ideas.

Good luck!

Eric

@Brian Doyle 

Welcome to BP! Have you considered taking out a collaterized loan or HELOC on one or two of your other properties?

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