Looking for advice, creative or traditional. I'll try to keep the post simple.
My goal: To add additional SFH rentals to my portfolio. 2-3 in next 6 months
My RE history: Investing/managing my small portfolio of 3 houses for 10 years. I have a proven method that provides good cash flow, however that's not the point of this post. Recently became a Realtor to assist in my RE career, and need a few more props so I dont have to rely as heavily on the Realtor aspect as I am probably more of an investor at heart.
A) 6 months ago I settled a 2nd lien on one of my props, which included a series of late payments. Its the only derogatory on credit, and currently sitting at 720. Im pretty sure this puts me out of any conventional lending aspects. From my last inquiry with a lending broker, its going to be 1-2 years seasoning after lates /settled for less. Second problem with conventional is I have been self employed, and my tax returns are not showing fantastic numbers over the last 2 years.
B) I have, or can come up with the 20% needed, but need to finance the rest.
C) Already tapped personal circle for private money, no bueno.
D) Considering portfolio loan, although with only 3 props, I would need a MIN 2 additional units for that to work. Then there is problem.... C1) 2 of the 3 props have good rates. 2% stepping to 3%, and a 4.25% 30 year fixed. Third prop isnt bad at 6.4%, but its variable although it hasnt moved in a long time. If I go this route I will be losing short and long term benefits in interest rates.
E) A commercial LOC secured by the props would seem optimal, although Im not sure if they will take being in the second position. Or if it would be based on tax returns..?
F) Hard money. Read alot about it, never tried it. Pretty sure they only do deals with 40-50% equity. So not sure this is the solution. Plus, Im looking more long term.
I need all you pro BPers to analyze my situation and give me your best possible advise. Prop A has little to no equity. Prop B has 80-100K equity. Prop C has 150K equity. Is there a way to tap this equity and keep my good current rates in order to expand?
THANKS TO ALL. I APPRECIATE IT.
Read up on credit repair and get after that.
Owner financing is the quick fix which comes to mind.
Inner circle does not want to loan you money but what about partnering on a deal with you? You each put in equal down payments, you find the deal and manage it, the loan is in their name.
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