All Forum Posts by: Ben V.

Reid hit it on the nail with this one. Not much beyond that for options. 

Hello Charles,

Welcome to BP!

I'm in the Orlando area and also want to start a meetup. I wonder how we could collab on this? Maybe we can work together to make an investing meetup in the Orlando area. I'm sure we both have some contacts. 

The DSCR loan requires that the property be rent ready. Meaning any major repairs will need to be done before closing by either you or the seller. You'll be ordering a 1007 rent schedule to determine your ratio.

The way you have described purchasing the home is somewhat confusing...You'll buy the home cash, then get a secondary loan to remodel. Neither one of those require a DSCR. The only time a DSCR will come in is when you 1. want to buy the home with the DSCR or 2. refinance it after your initial purchase and repairs into a manageable payment.

Hope I understood your question and answered it for you. If not you can feel free to reach out to me. 

Hey Erik,

Welcome to BP!

You have several options for funding your first deal since you have equity in your home. I don't know what you are trying to do though...fix and flip, long term, short term...so forth. 

1. Pull a HELOC out and use the funds to purchase a small home with cash. You'll have a paid for home with instant cashflow.

2. Pull a HELOC out and use the funds as down payment for a fix and flip, use the remaining funds to rehab the property.

3. Pull a HELOC out and use the funds to purchase several properties using DSCR loans. That one is a super one and I love the DSCR loan. Get's you going very quickly.

4. You have more options but I think that is the ones I like the most. 

Hope that helps! I'm a mortgage loan officer specializing in first time home buyers and residential investors. 

If you are wondering what a DSCR loan is I wrote a short article on it. Check it out - https://www.biggerpockets.com/...

Tenets can be good when they are quiet and pay. However they can also go under the radar and trash the home. The other thing to think about is that some tenets take small repairs into their own hands. They tend to repair small leaks, or sometimes even electrical problems. With that said you need to make sure they do it correctly. I've seen tenets repair sink pipes before and it was terrible! Shark bites are not permanent solutions... These types of repairs could cost you a lot in the end. 

You also have the right to inspect as others have mentioned. Your tenet should take offense to this. If he does, that is his problem. 

Cheers! 

There's a lot here to pick at but maybe I can offer another way. 

Place an all cash offer on the investment property. However add an addendum that you are using financing first and if the financing falls through because you are unable to achieve it, you'll still purchase the home cash. 

This is exactly how Ribbon works, but instead you are just using your own funds instead of someone else's. You can save yourself thousands by placing a cash offer. 

I wouldn't say that he has had time to show that he is making an attempt to clean up his life. From the sounds of it he's been in prison for 12 years and only recently got out. Prison isn't an attempt to clean up, it's forced, against his will. Over the next couple of years he can show that he is cleaning up but that time hasn't come yet. 

In this case, the hills sound safe and reassuring if you catch my drift. 

Read Brandon Turner's book "The Book On Rental Property Investing". It is a super easy read, but very informative and it will give you the start you need. 

Hey Adonis, Welcome to BP!

That is great you are looking to invest. What types of questions can we answer for you? I'm a lender in Florida. 

There are a lot of different programs to choose from. It depends on what you are trying to do. Tell us your goal in more details and perhaps I can point you in the right direction. 

Are you looking to do a BRRRR, house hack, straight up investment purchase with 20% down??

 Hey Brianna,

Great question! As mentioned previously you'll want to look into the DSCR loan. I wrote an article on this particular loan and how it works if you want to check it out. Hope this helps!

https://www.biggerpockets.com/...