All Forum Posts by: Bill MacFarland

I have an experienced custom home builder client looking to partner with an investor. We are near settlement on a deal we have in the works on a beautiful home in S.E. PA. We have a couple of lucrative options on the table and looking for an investor to collaborate with. Please contact me directly for details and additional information.

www.billmacfarlandrealty.com

Investment Info:

Single-family residence buy & hold investment in Gilbertsville, PA.

Purchase price: $145,000

Purchased worst SF home in great neighborhood - turned into one of the nicest. Bought as a possible buy and hold or fix and flip.

I'm a PA & NJ realtor looking for a private money investor to partner up with on a value-add multi-family home under $500k for a potential deal in Wildwood Crest, NJ. Please contact me ASAP with interest. The listing was U/C with a home sale contingency and fell through with another buyer. The seller also just dropped the price. If we don't make it in time for this one, maybe the next one? Thank you.

Thats a hell of a story man. Keep plugging forward, set your goals and crush them!

That is great information and very clear for me to understand. It appears I need to approach this particular deal as a rental, which is fine. Thanks so much for your response!

I may have, but not sure I was presented all options. I think the other issue besides DTI, my income 2 years ago was was down pulling my 2 year average down.

I appreciate the reply. So to understand correctly your suggesting et a hard money loan to cover the purchase and rehab costs with no-out of-pocket? How much higher typically is the rate on a DSCR loan than a typical conventional fixed? The rents would need to cover the loan & expenses I would imagine to be approved for a refi on a DSCR?

Im settling on my primary PA home shortly and Im a licensed agent in PA and NJ. I am considering a duplex in S. Jersey that has value-add opportunity investment, however Im not approved for a conventional financing due to DTI issues. My credit score it good (over 700) and I can afford the purchase. I will have a decent amount of cash from my sale for down money, closing and payments and reno. I may live in 1 half and rent the other. Or rent both sides at some point and just use in the off season. Depends on some factors. My questions are as follows:

1) What options are available to purchase and what are some suggestions? It could be considered my primary home as a purchase for a better rate, however I will view it as an investment and 2nd home at some point. Partner? Private investor? Hard money loan? Its an estate sale so seller holding the mortgage likely isn't an option. Don't use any of my money to purchase only towards reno? Options? Suggestions?

2) I will do the reno myself at my out of pocket expense. So down the road 6-12 mos. or maybe a 1-2 years? if I refi to cash out my partner or obtain new financing/lower rate, better terms, BRRRR. What do I need to keep in mind as far as rental and qualifications down the road what type of financing may I qualify at that point or should consider in my planing? I assume I likely wouldn't be approved for conventional financing at that point either or maybe Im wrong?? Would I need to exceed a certain amount in cash flow from rent to exceed my expenses? I don't want to be stuck in a bad situation at that point. What should be my goal? Any suggestions on a path to take for financing at that point?

Rising interest rates and availability of homes on the market are certainly considerations right now. I have a lot of frustrated buyers right now and sellers on the fence because they are considering selling but don't want to lose their current low rate by buying something new (IF they can find what they are looking for).