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All Forum Posts by: Anthony Freeman

Anthony Freeman has started 88 posts and replied 326 times.

Quote from @Irina Belkofer:

@Anthony Freeman not only - it took me quite few years to build it.

Yes, I never missed a payment in my life - even if I had to pay high interest on the balances for few months.

Then, you have to have 4 credit lines in perfect standing for 7 years…obviously, no collections or anything derogatory. Income doesn’t matter but limit does matter - and they won’t increase your limits with $12-15K I made back then. So I declared higher that real income - and it was Magic - in a year my income increased to that amount I told to c/c.

The main rule to remember - don’t apply to more than 1-2 cards in 6 months…when you need money - nobody will give you good deal. Credit cards and lenders start sending you good offers (0% for 21 mo with 2% fees on business credit card with limit if $40K) when your score is higher than 780 and no visible debts on your report.

I guard my credit with all I have - it’s much better than money. All my money I’m making - it’s on credit 


 I have to get an 850 credit score. 

Quote from @Drew Harris:
Quote from @Anthony Freeman:
Quote from @Neil Sherry:

@Anthony Freeman there are many NO INCOME VERIFICATION real estate investor mortgages available .


 Is there anyway you can guide me in the direction of lenders you know personally that have actually lent on no income verification terms.


Hey Anthony, depending on your state I can help you with that. With the DSCR Cash out refi your credit score and DSCR ratio (gross rent divided by the PITI).

620-659 65% cash-out

660-699 70% cash-out

700+ 75% cash-out

   


 Do you service Ohio?

Quote from @Zach Morton:

My screening process: 

  1. First Impression
    • Do they show up on time? If they’re late it’s an indication of poor time management.
    • How do they present themselves; clothes, hair, posture, body language
    • Do they ramble and talk too much? If so they don’t listen well and will be a pain to deal with.
    • Are they a smooth talker / salesman? Look out for social manipulation.
    • Are they know-it-all or arrogant? Don’t work with people who try to make you feel small to showcase their strengths and talents.
    • What is their Uber/Lyft rating? How they treat those who are in service of them provides a glimpse of their character.
    • Traits you want to look for: honesty, integrity, character, good communication skills, project organization and articulation, personal accountability, focuses on solutions and financial acumen.
    • Do you like being around them, do you trust them, do you want to do business with them, is this someone you would trust to communicate and work through things when your money is on the line, what does your gut tell you
  2. Experience
    • Ask about their experience in real estate, specifically in regards to the deal type they are bringing to you. Look for someone with a long track record and a good reputation, and be sure they’re well connected in the local market.
    • What are their goals? Are they serious about being massively successful in RE or could they leave it all behind.
    • Ask them to share their worst deal, what went wrong, what happened, then shut up and listen. Do they blame external circumstances as the sole cause or do they take responsibility and communicate the lessons they learned? You can ask them what they learned from the deal, you can also press and ask what they could have done differently. Another thing to listen for is that all deals have been nothing but smooth, this means they’re likely covering something up.
  3. The Deal
    • Ask about the current project - basic criteria only to ensure it’s possible to work it, also allows you to let them know what they will need to do in order to fill out the application (such as getting purchase contract signed by both parties)
      • Location & primary residence
      • Property type & deal type
      • Have they seen the property in person? Do they have photos they can show you? How did they find it?
      • Is the property under contract, purchase contract signed by both parties
      • Purchase price + rehab plan / costs + ARV, potential profit / expected returns
      • Why do they think it’s a good opportunity?
      • What potential pitfalls do they see?

You really want to get a feel for this person, if you like them, if you'd trust them to remain accountable if the deal goes south -- be super picky and make sure they have both experience and internal qualities that you want in a "partner".

 Have you lent before?

As a private lender what do you look for in an investor that wants to borrow money?

Quote from @Irina Belkofer:
Quote from @Anthony Freeman:

One thing that I am evoked to mention is your debt to income ratio. After using those credit cards for the purchase did your acquired debt ever enter the conversation at the time of refinance?

I assume you ask me because people never finance real estate with credit cards.
So, the catch here is once you deposit checks ftom credit cards for 12-18 months with 0% (and they have 3-5% fees upfront), your FICO score will drop 100-120 points till you pay them all off.
business credit cards are not shown on your personal report - these are exceptions 

I was buying houses back then for $8-13K and fixing them up for $7-10K, renting for $795-925/mo.
my returns were high but whole year you can’t buy anything else this way…..after tenants paid off these credit cards - it’s starting over.
‘During that time you’ll never get good offers for credit from credit cards, banks - anyone.

So, basicly, you have to make really strict plan of payments during this time and pay it off before they start incurring 29.9%

I created this game since I came to this country - the next day after I’ve got my SSN…..still there is nothing works like excellent credit.
Banks discount my rental income, my self employed income, even my investments in stock market - but never dismiss my almost 850 FICO. 

 I applaud you for your creativity and your discipline. 850 fico is amazing you must get approved for all types of things. Did you build that by simply paying off your credit cards that you used to purchase the properties?

Quote from @Muhammad Patel:

Then DSCR is your best option.


 Thank you Mr. Patel

One thing that I am evoked to mention is your debt to income ratio. After using those credit cards for the purchase did your acquired debt ever enter the conversation at the time of refinance?

Quote from @Irina Belkofer:

I don’t - they are too expensive for me. My clients did - investors take whatever they can get.
one of my clients financed his factory with such loan…shortly after there started the Great Recession. Bank was checking his financials every year but in 2009 they say to pay it off or refinance - within a month. It was $2M Loan 

He went to another bank and they refinanced him and he closed all accounts with the first bank. He still own the factory and the building free and clear and don’t want any financing any more.

That's one major hazard of DSCR loans - bank can call it off any time if they don't like your P&L etc



 We would have to make sure our income is proper then. Calling a loan at anytime does not sit right with me.

Quote from @John Morgan:

Go with DSCR lenders. They don't care if you have a W2. If you have a pulse and it cash flows, they'll give you a cash out refi or a new loan. lol

What rates have you seen on these loans?
Quote from @Irina Belkofer:
Quote from @Anthony Freeman:
Quote from @Muhammad Patel:

Do you have a business?  Are you filling schedule C or K1. If so this could be used a period of income.  If not then the non-qm options might help.  

My business is real estate investing. I do not have an outside entity.

I never had W-2 income - I have 2 mortgages. Lender will take your sch.C, E or K-1 - you just provide two years of tax return.
you'll need to show reserves, low DTI ratio and 20% down for investment property.

if you didn't report your income on your tax return - tests another problem ….but DSCR loan will cost you much more than conventional


 How much experience do you have with Dscr loans?