All Forum Posts by: Andrew Garcia

Hi @Elias Lopez, your best bet would be to do a conventional or DSCR refinance at 75% LTV then do a HELOC or HELOAN as a second lien for the remaining 10%.

Lending is generally tightening up so finding an 85% LTV cash-out might be tough.

Hope this helps! Let me know if I can be of any assistance.

Hi @Rey Jean, below are my answers.

1. At that price range, you are probably looking at Midwest or Southeast markets. There are so many good ones out there but having the right team is more important than the market itself.

2. It depends on the state that you live in. If you live in Ohio, then it could be a great opportunity. If you live in CA, you might find trouble finding something good below $150k.

It can also be tough to find financing when buying land so ensure that you have a solid vacant lot lender before you start looking if you choose that route.

Hope this helps! Let me know if I can be of any assistance.

Hi @Jacky Lei, that is way off. They likely have to make a fixed amount per deal so naturally, they have to charge higher rates for lower loan amounts.

Depending on your credit score and a few other factors, you should be looking at something in the 6s. You might have to pay a point or two since pricing for investment properties is not the best right now but since the loan amount is so low, it would only be $500-$1,000 most likely.

With that being said, small credit unions could have better rates and terms. You never know unless you look.

Hope this helps! Let me know if I can be of any assistance.

@Louis Zameryka, in that case, it could be a good idea. Ensure that you have an exit strategy in case rates hit double digits. You don't want to be stuck in a 10-year commitment getting 8% from the syndication paying 12% in interest.

Hi @James Carr, it sounds like you want to get into syndication. There are so many good resources out there that can teach you about syndication.

It is typically done for multi-family. If you are looking to scale with SFHs, you might need to change the structure.

In terms of scaling to ten units, it is pretty straightforward. You can get up to ten financed properties with conventional financing.

With 7 properties, you might be running into DTI issues. There are still options.

You can get DSCR loans where the lender qualifies you based on the income generated by the property rather than your personal income.

Hope this helps! Let me know if I can be of any assistance.

Hi @Jeshua Sosa, welcome to the community!

This is a great place to be. I am sure you will take a lot of value from being here.

Congratulations on owning your small business. I wish you the best of luck in REI!

Let me know if I can ever be of any assistance.

Hi @Brant Jones, Fannie Mae and Freddie Mac do not lend on 2-4 units for second homes so you would not be able to get conventional financing for this. 

However, you may be able to go the Non-QM route. It is essentially where you get a mortgage that does not fall within the traditional FHA, VA, USDA, and conventional buckets.

The rate would be higher but at least you could still get it done.

If you would like to pursue this option, I can refer a lender to you. Feel free to shoot me a message so we can exchange information.

Hope this helps! Let me know if I can be of any assistance.

Hi @Mike Whelan, this might be considered "delayed financing" so you would not be required to wait 6 months in order to do a conventional refinance.

Alternatively, you can do a DSCR refinance at a slightly higher rate.

If you would like a referral for either option, feel free to shoot me a message.

Hi @William Staton, there are quite a few ways to condfuct research on prospective areas.

One way is to connect with a local investor-friendly agent. They should tell you which neighborhoods to avoid and which could be attractive.

Another way is to look up statistics from the Bureau of Labor Statistics and the U.S. Census Bureau.

Additionally, tools such as Rentometer and AirDNA can help you get an idea of the income generated by prospective properties.

Hope this helps! Let me know if I can be of any assistance.