Looking for financing help in Columbus ohio

[Dorian Gray]

I applied for some mortgages recently and was declined based off my schedule E losses last year, one property had large repairs to be done. I was hoping to obtain another property, I already own 4 properties(6 units) one of which is paid off, and was looking for some advice on how to go forward. I have a lot of equity in the properties and have a around 15k for a down payment currently. Anyone having any advice for me?

[Patrick Drury]

@Dorian Gray
What kind of mortgages were you declined for? Were they conventional? 

[Dorian Gray]

I’m not 100% sure, it was with chase though 

[Paul Defngin]

Quote from @Dorian Gray:

I’m not 100% sure, it was with chase though 

 Chase would most likely be a conventional financing. If your Schedule E shows repairs that are considered one time or long term capital expenses such as HVAC, Roof, etc, and you can document it with invoices, then you should be able to add them back like depreciation amongst other things. This is where you need to be communicating with a good CPA to properly document your expenses. 

If conventional financing does not work then look into alternative financing. There are loans that will will allow you to purchase an investment property with just using the property market rent to qualify for the mortgage, provided that the rent covers at least the mortgage. That said, they usually have a minimum loan amount of $150,000 and requires at least 20% down payment, for the most part.

Good luck. 

[Dorian Gray]

Quote from @Paul Defngin:

Quote from @Dorian Gray:

I’m not 100% sure, it was with chase though 

 Chase would most likely be a conventional financing. If your Schedule E shows repairs that are considered one time or long term capital expenses such as HVAC, Roof, etc, and you can document it with invoices, then you should be able to add them back like depreciation amongst other things. This is where you need to be communicating with a good CPA to properly document your expenses. 

If conventional financing does not work then look into alternative financing. There are loans that will will allow you to purchase an investment property with just using the property market rent to qualify for the mortgage, provided that the rent covers at least the mortgage. That said, they usually have a minimum loan amount of $150,000 and requires at least 20% down payment, for the most part.

Good luck. 

[Dorian Gray]

Thanks for the insight, do you know what companies offer these loans? Have you done business with any?

[Dorian Gray]

No I have good credit. Think my three scores are 805, 785, and 790

[Remington Lyman]

Quote from @Dorian Gray:

I applied for some mortgages recently and was declined based off my schedule E losses last year, one property had large repairs to be done. I was hoping to obtain another property, I already own 4 properties(6 units) one of which is paid off, and was looking for some advice on how to go forward. I have a lot of equity in the properties and have a around 15k for a down payment currently. Anyone having any advice for me?

 I would reach out to a mortgage broker so they can give you more options than Chase. @Chris Wharton and @Ashley Cross are great lenders here in Columbus, Ohio

[Chris Wharton]

Dorian - let me know if you'd like to connect.  While a Schedule E is the first analysis of rental income, there's often opportunity to document why it's not an accurate representation of the properties P&L and why 75% of the existing 12mo lease is appropriate.

[Scott Winter]

Hey @Dorian Gray! I’m also buying in Cleveland!

Sounds like you’ve applied for a Chase loan. What else have you tried? 

There are so many loan product options within the different conventional, non conforming, and private money categories. There is something that will fit your situation if you keep digging. 

[Alex Breshears]

Hi Dorian!

As a private lender that lends out my own capital, I have the ability to be flexible on loan terms. For example, I can do a cross collateralization to the property you have free and clear (as long as it isn't your primary residence) or you could take out a short term private loan on that property and then refinance in a year when you've had another tax return. There's a couple different ways to structure something like this. I personally don't lend in Ohio, but just as an example of something that could be done with an individual private lender. 

[Dorian Gray]

Thanks Alex! Can I ask why you don’t lend in Ohio? Just curious if there are legal barriers or purely a geographical barrier? Do you know of anyone in Ohio that does this, or how I would search for this kind of lender?

[Miranda Holland]

You can possibly do cash out refinances on Properties you have equity in so you can increase your liquidity. Depending on property values, you may qualify for 30yr term even with private lenders.  But it's hard to say without your numbers in front of me

[Zach Edelman]

You should definitely do a cash-out refinance and pull out some of your equity in those four properties so that you can then buy another property, thus scaling your portfolio. I can help you with said cash-out refinances. Slide into my dms. 

[Chris Walko]

You should hop on a call with a broker that can shop around a bunch of banks for you instead of going to 1 rep at chase.

[Basit Siddiqi]

Explain to the lender that the repairs were one time expenses and you don't anticipate the same expenses for 2022 and going forward.

[Muhammad Amawi]

Hey Dorian,

I’d be more than happy to connect to better understand your unique situation and take a look at everything for you

[Camile Case]

DSCR loan no income docs from you as long as the property can pay for itself - cash out refi on the current properties owned if you need additional cash