All Forum Posts by: Andrew Postell

@Mylene Bel the biggest challenge you will have is getting a bank to lend on a loan amount that size.  Most foreign national programs are portfolio loans.  Most portfolio loans have a loan minimum of $100k.  Hope this helps with what direction to take.

@Yaron H. it might depend on which state you are looking in.  Some banks may not be approved in some states in the US.  Try Angel Oak Mortgage.  I have used their foreign national program in the past and it is available on investment properties.  Thanks!

@Max Johnson welcome to BP!  I office in Keller and live in Fort Worth.  Would love to be in your network.  Have you visited any investor networking groups in DFW yet?

@Mike Hopper I've had to do this for several lending transactions and we have relied on the title company to do the handle the process.  They would use their own surveyor and then setup everything else legally for us.  There could be other methods but that's the method I have used in the past.

@Louis Sutton don't forget that your VA loan can be used to by a duplex or triplex type of property. I am a former Marine and I wish more of us knew about this feature. So if you can BAH for living off base, by a duplex, rent our one side, you will be in a very good position! I still have my property in Jacksonville and I know some realtors if you would like to get in touch with any. Private message me with any questions on it. Thanks!

@Michael Glaser the basic premise is that a conventional loan has some hard rules when it comes to taking your money out of the house. If you purchased the homes with cash, then you would be limited to 75% LTV or your purchase price + closing costs...which ever amount is lower. If you purchased the homes with a loan then you would have to wait 6 months to do a cash out transaction. That's with a conventional loan. A portfolio loan is an entirely different loan type. Some banks have them and some banks don't. Basically a portfolio loan is the banks own money (conventional loans are money from Fannie Mae and Freddie Mac) so depending on the bank the loan could be very different. Most portfolio loans that are popular with investors still have a seasoning requirement when pulling cash out. Again, this could be very different dependent on the bank's portfolio product. Hope this helps!

@David Pascual for the conventional route you will have to close in a person's name and title it in a person's name. Then switch to the LLC after closing. So if the person who's name is on title doesn't switch it to the LLC then that would be an issue. I don't know what the relationship is like between you and your partner but to avoid potential problems like this just closing in a portfolio loan would avoid it entirely. Hope this helps.

@Mike Oliveira and @Robin Valadares I guess I should be very thankful of where I am at.  No wonder we have so many outsiders investing here.  If you are thinking of investing outside of the country keep us in mind.  Our rent market is one of the best.  Good luck with your search!

@Tristan Thomas you won't find a lot of fans of the 203(k) loan here. It's not as easy to get as a Hard Money Loan but it still has it's benefits. There is a LOT of information on these loans but I'll keep it brief for time. First, you must occupy this property. The 203(k) loan is an FHA loan, which requires you live in one of the units. What you should be looking for in your own private residence might be out of the scope for this discussion but I can comment on the other items. The 203(k) loan has 2 types - streamline and full. Both the streamline and full 203(k) types will require that all contractors and subs be approved before work begins and no sub or contractor can be related to the borrower (you). The streamline version is limited to $35k in repairs with no structural repair work allowed. The full version can go significantly higher but no "luxury" items and no pool installation allowed. You can do $1500 in pool repair with the full version. So if you find a property that needs one type over the other make sure your lender can offer either type. It's weird but some lenders only offer one of these types. Also, conventional loans have their own renovation loan. Those you can add a pool and luxury items and you don't have to live in it. However, the conventional renovation loans are so complicated that I would highly encourage you to use hard money over the conventional loan if possible. So, if you were to live in the home, then hard money would be out. Hope this helps!

@Kuba F. excellent feedback. @Account Closed I start at 6% selling costs at a minimum.  That would be $12k on this deal.  All of Kuba's points are dead on.  There's still good room for profit in this property.  Good luck with the offer.