All Forum Posts by: Andrew Postell

@Cindy Carriger looks like a great event!

@Ashlyn McIntyre so, there are loans out there that have NO seasoning requirement.  What those other lenders are quoting you are Fannie/Freddie loans.  

Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”

Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names). These loans are all 30 year fixed rate loans. They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later. The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending. Fannie/Freddie money = Fannie/Freddie rules. NOT the bank's own money.

Portfolio - I'll define these loans as loans that come from the bank's own "portfolio" of money. Sometimes referred to as "commercial" loans. These loans are a lot more flexible than "conventional" loans. Bank's money = Bank's rules. If they like you, then maybe they will lend to you. But since there is a limit to how much money the bank has access to....their rate will be higher...or maybe have a prepayment penalty.  But these are the loans that can have no seasoning attached.

I also want to mention that the way you structure your deal might force you to have seasoning in the Fannie/Freddie world.  This is a common element I see with beginning investors.  If we just structure the transaction slightly different - then you won't have any seasoning with Fannie/Freddie either.

I hope all of that makes sense but feel free to reach out with any questions.  Thanks!

@Jose Morales it sounds like you already have a loan on your property...is that the case?

@Ben Mosier ok, yeah, so in that same scenario, I would just make 1 draw from my lender at the end of all the rehab.  That way, I repay all the money I used in the process.  Does that make more sense?

@John Kim can you share with us your math on an example of how a property is cashflowing?  Most properties don't cashflow currently...so I'm curious as to what you are seeing as well.

@Cynthia Mene let's ask some investors in your market this question. Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.

@Vu Le you need to ask your current lender this question.  Normally, it won't matter...but let's get the answer directly from your lender to make sure they don't have any issues with it.

@Ben Mosier oh, yeah, I guess I am making some assumptions here.  So, I was assuming you have a rehab amount built into your current existing loan that you could draw from OR use your own cash.  Is that the case here?

@D. Crawford what do you mean "10% cash 10% equity"...are you saying they will lend you 90% of your property value at 10% interest?

@Joshua Logan try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Eventbrite is another one.  Several groups meet in your area and you should be able to find a few that way.