Advice on First Deal

1 Reply

Hi BP Community, 

I've listened to a lot of the pod casts but have many more to listen to. I must say they are amazing and many thanks! I'm a real estate first timer. I've tried to do my homework but would really appreciate any advice on the numbers. I've put together a spreadsheet here ( https://docs.google.com/spreadsheets/d/1058BKzlsVD...) that I'm putting together to help analyze deals. Love to hear any advice on this deal and if there are any other metrics I should add. Looking to buy and hold and have some positive cash flow.

Thanks All! Really Appreciate any advice!

@Michael Glenn I would also get pre-quailed for a mortgage before you start looking to see what you can qualify up to. 

Here is some info that may help you with conventional financing. 

You can borrow for up to 10 conventional mortgages, down to a price of 10k! You have the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;

  • A SFR requires a LTV of 85%
  • A MFR requires a LTV of 75%
  • A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 5-10;

  • A SFR requires a LTV of 75%
  • A MFR requires a LTV of 70%
  • Minimum credit score of 720

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to six (6) months PITI for the subject property are required.

Cash Reserves Required For Other Properties Owned by Investor;

  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!

Medium prime lendingJerry Padilla, Prime Lending | [email protected] | 585‑204‑6923 | https://lo.primelending.com/jerry.padilla | NY Lender # NMLS #1084877