Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
We are in some unsettling times and many of you have questions about financing options available for investors. Others have questions about the lingo/structure of RE financing. Opening up this forum to send me all you questions you have. I'll do my best to answer all questions submitted here.
if I have a four unit rental property which I buy for cash, rehab and get fully rented out - is there any minimum time I need to hold before a conventional bank will refi? Thanks
Its tough to get what you are asking for. PMI is a protection for the lenders in risky purchases and in this case, putting little money down is risky. And obtaining two loans for a purchase is being discouraged but I cant speak for everyone.
I can only speak of one program that can fit what you are asking. Ive posted about this before on different threads but look into the NACA (Neighborhood Assistance Corporation of America) program. Thats how I closed on my property without out of pocket PMI or 20% downpayment but you have to live in the property and it is a slow and arduous process.
Please explain why you want to use the 5% conventional loan AFTER the renovation. If you fix up the property, that usually adds value and the deals what we all search for here mean you forced appreciation and therefore gained that equity. Closing and operating in an LLC is very possible. Seems like you are adding an unnecessary step adding it back into your personal name. Please clarify if Im missing something.
I am looking to refinance an investment property. The loan would be around 450K. The property value is 650K. I am looking to get a better rate. Where are rates on investment properties?
Please explain why you want to use the 5% conventional loan AFTER the renovation. If you fix up the property, that usually adds value and the deals what we all search for here mean you forced appreciation and therefore gained that equity. Closing and operating in an LLC is very possible. Seems like you are adding an unnecessary step adding it back into your personal name. Please clarify if Im missing something.
I would like to get my (or friend’s) Cash back for future deals, and lock in a 30 year 3.125% loan. I am new to this, is there a better way?
HML are not regulated the same way big banks are. Usually there are a minimum payments that need to be made (like 3 or 6 months payments minimum) or a pre payment penalty if you pay off the loan early. This varies from deal to deal but as we all know, read the fine print of the contract and make sure you understand it.
Short answer, it varies from HML to HML
Just as a follow up: Most HMLs (at least precorona) no longer have prepayment penalties.
Cleveland, OH · Member since 2020 · 18 posts · 6 votes
6y
Sorry for being unclear. I was talking about two things...1) what's an "average" interest rate to expect from a lender and 2) what do they typically charge in terms of fees (points? origination fees, etc.) Ball park just for planning purposes.
I am new to investing and recently moved back to the US after teaching abroad for a few years. I want to possibly buy a rental or flip a house with the money I have (about 40k) but not sure what I would qualify for. I am starting fresh work-wise and I know that will be the biggest hurdle.
I know this is a rookie question but just wondering what you would suggest I do? I would like to start wholesaling full time but I understand that it would take me 2 years being self-employed to qualify.
If you have any tips or advice it would be greatly appreciated.