All Forum Posts by: Ashley Pimsner

#1 refinancing multi-unit is no more difficult than single family homes.

#2 a portfolio lender, ask for the commercial department even though it is a residential loan, which is a local lender in your own backyard that holds the loans on its books, typically requires a DCR of 1.25> and an ARV (after repair value) of between 70-80%.

#3 a portfolio lender typically lends on 20 to 25 year amortizations with 3 5 & 7 year balloons.

#4 this is a great strategy and one that I use however you need to speak with the portfolio lender to find out about their seasoning requirements. That is how long do you have to wait after you rehab and place tenants before they use the improved value? Sometimes it is 6-12 months.

#5 a portfolio lender which looks at the cash flow and ltv of property instead of your income and dti's usually will only lend to an entity like an LLC.

Hope that is helpful .

If you have an IRA or 401k these should count as reserves but you might only be able to use 70% of these funds on application.

The type of investment property such as SFH, condo, multi unit will also affect down payment.

Find a reputable mortgage broker in your area that can advise you.

Best of luck

You might want to contact a colleague of mine as he might be able to help.

@Rob Gillespie can you lend Charles a hand?

@Mike Henkel 

Thanks for sharing you are a force of nature!

To all those people who gave backhanded compliments about his areas housing being so cheap or what great luck he had with his timing, I can guarentee that if you were presented the exact opportunity as Mike, each and every one of you would have found an excuse to NOT take action.

We had an old saying on the CME trading floor "excuses are like butt holes, we all have them, and they all stink!"

Give him his props, take a careful self inventory and learn from his story so you can find out what is holding you back from success.

Great job Mike and please keep the BP community updated on your journey.

@Patrick Barker

Another suggestion to bypass the Realtor and keep you from getting preapproved would be to write a simple letter of intent (LOI)

The LOI has been used effectively by people such as Grant Cardone who was featured on podcast #108.

A simple google search of this term will show some samples....good luck!

Why would someone contribute  approximately 25% to PP when "time is of the essence" and receive a discounted equity position for their efforts? 

@Steve Wilmers lol that has also happened to me.

@Jason, are you speaking with the local community banks in your area on the commercial side even though this may be a residential investment? Ask to deal with VP on commercial side for loans for"investment" properties. Typically they will lend up to 70% with a DCR of 1.20> to an LLC.

Secondly, consult an experienced real estate attorney about the benefits of buying property in a land trust with the LLC as beneficiary to alleviate your concerns about the "due on sales" clause from lender.

Tony Gatto, message me and I will provide the info.

I don't want to sound harsh but you should have had an exit strategy in place before taking on the rehab. That being said a portfolio loan from a local community bank is your best bet if you can't qualify for a conventional loan based on your income. Typically a portfolio lender will require a 1.2 DCR which is the debt coverage ratio and between 65 and 70% ARV which is after repair value. Many banks require a one-year seasoning period after rehab. With the portfolio lender, since they hold the loan on their books and do not sell it you might have some wiggle room on a case by case basis. Best of luck