All Forum Posts by: Aaron Kaminer
Aaron Kaminer has started 1 posts and replied 4 times.
Post: How To Keep Getting Loans
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Originally posted by @Jason Hirko:
There are lenders that will do loans for new borrowers. The credit and down payment requirements may be slightly higher, but nothing unreasonable. A good HML can also help walk you through the entire rehab process and evaluate your deal with you so you don't get in over your head.
it's my understanding that there are institutions that specialize in lending for BRRR. Do you know anything if this?
Post: How To Keep Getting Loans
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Originally posted by @David M.:
Well, I believe you can only have 10 conforming loans under your name. That is where you need to get nonconforming loans.
You can obtain/refi as many loans as you can qualify, more or less. You need to find a good lender that can keep track of what is coming and going and process the loans quickly. Mine would probably love the business.
Don't forget that with the 6mo "seasoning" timeline, those refi's for the 10 sfh will be spread out.
I honestly don't see how mfh would alleviate any of this, unless you are saying you won't have the funds/financial capability to scale..
Does this help? Be happy to chat.
Ahh.. so it's not a loan cap. It's a conforming loan cap? Interesting. Does the lender take cash flow into account when qualifying applicants? Otherwise, wouldn't my debt to income ratio be really bad after a few mortgages. Also, if I operate through an LLC with a partner, is it still my personal credentials that are used to qualify the loans?
Post: How To Keep Getting Loans
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Originally posted by @Dionne Morgan:
I work in underwriting, and my company only allows for you to have a max of 10 financed properties. I don’t know if any other lenders who allow for more. So once you are passed 10 financed properties you will have to get private mortgages.
Meaning, find rich people who are willing to loan you money? Is this really the only way to hold more than 10 loans? How to people get to 30+ sfh? Maybe apartments is the only way to get to a large door count.
Post: How To Keep Getting Loans
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I am just starting out. I have been researching for about a year now and my strategy (at a very high level) is to BRRR my way to financial freedom. I am not excluding other strategies but I intend to focus most of my time and energy on BRRRs. That said, I am concerned I will not be able to carry enough loans to acquire enough doors. E.g Let's say I aim to acquire 10 SFH per year, my first 2 years. I.e, 20 loans in total. Is that even possible? If so, what type of lender am I looking for?
My understanding is that a common bank will struggle to meet these needs. Rather, a portfolio lender might be a better option. However, I have heard that portfolio lenders can make it difficult to sell the property, should you decide to do so. Then there is private lending..
My question is this: In light of this high level strategy and the need for many many loans, what is the typical (if there is such a thing) route for lending?
I do understand that acquiring MFHs would alleviate this issue to a degree, however, I am asking in principle. How would this be achieved?