All Forum Posts by: Brad Bellstedt

Anytime!

In my experience, BRRRR properties won't qualify for conventional financing because of the condition of the property. Going to hard money/private money route is typically what you'll see. That's actually why the 3 R exists, because after you have brought the property up to conventional financing standards, you refinance out of your hard money loan and into a conventional loan. With hard money I understand you should be ready to pay 2-3 points, 20-25% down, and the rates are 10-12%. Expensive for sure but if it's a good deal, the HML will finance the other 80% of the purchase price and 100% of the renovations. Just make sure to account for the cost of the hard money in your calculations.

If the hard money lender tells you they won't lend on a specific property with the numbers you have because "you don't have a deal," take that advice. A lower purchase price can solve that problem for you but of course, the seller has to agree to the terms as well. 

Hope that helps!

Absolutely not. Until you are in contract on a property, there is nothing to put a deposit on. Plus, it takes literally 20 minutes to wire over your EMD. If it took a couple of days, I could see that being a legitimate request but in my experience and from all the stories I've heard, it's NEVER a good idea to wire money to anywhere but escrow and only after an agreement has been made, in writing.

Sounds like we are in nearly the same position. With a commission based job I believe you have to show 2 years of tax returns and the most recent year you need to have made more than the previous year. (Don't quote me on that) I too work on 100% commission and that's what I had to do to get approved for a mortgage loan. In my opinion, the absolute best technique for someone who doesn't have 20% to throw down on a non-owner occupied property, is to house hack. Myself and my business partner have both done it successfully. (His story is a little more exciting than mine so we'll look at his.)

My business partner bought a 5 bedroom house years ago and rented out all of the bedrooms except that master that he kept for himself. At full capacity, he was getting his mortgage/HOA paid for and putting a couple of dollars into his pocket every month. Eventually, he purchased the 3 bedroom house right next door and still rents out the 5 bedroom. Without the extra income from his tenants there's no way he could have pulled off a second purchase. Today, his mortgage payment is about $1,200 on the 5 bedroom and about $1,500 on the 3 bedroom ($2,700 total) and he still rents the 5 bedroom out, now at $2,200/month. So for 2 mortgages, he only pays out of his own pocket, $500. In addition, he has leveraged the 5 bedroom via a home equity line of credit and has cash on reserve for the next purchase. It's a GREAT way to learn about finding and screening tenants, managing rents, and executing leases.

Currently, I have 2 properties. One was purchased in 2009 and the mortgage payment is $710 while my tenants pay me $1,450/month. I put away $300/month for vacancy, maintenance, and Cap X and the other $440 helps to pay the $1,600 mortgage on my primary that I am also currently house hacking to a single roommate. Of the $2,310 of mortgage payment I am responsible for, I pay about $600 of it. Because I have 3 other people paying into those bills, I am able to save faster for my next down payment. It's a win-win-win all around. You are capable of doing exactly this same thing. 

If you can get approved for the amount you need to purchase the property, it should be fairly easy. Of course, you will have to live in one of the units for at least a year per the VA guidelines and can refinance after that 1 year mark. Getting copies of the current leases, P&L statements and whatever else you can get your hands on to prove that this property produces and income will certainly help you to qualify.

I know of an amazing lender here in Vegas that I trust enough to do my own mortgages (and have) that is also licensed in CA. I can connect you two if you like. She's a 26 year veteran and is my "go-to" lender for just about everything. 

@JaMari Young What does your current situation look like and what are you trying to accomplish? Lets start from there and then we can build a strategy to accomplish your goals. 

I find that it is VERY easy to be a good Realtor when there are so many bad ones out there. It's kind of like dating a girl who just got out of an abusive relationship, which makes you look like an angel by comparison. 

Literally, answering your phone when it rings puts you ahead of 40-50% of agents currently holding licenses. Luckily for all of us NAR just increased the number of hours needed to get your license and to renew it so with a higher barrier to entry, I think we'll start seeing some of the bottom of the barrel agents/would-be agents unable to acquire/maintain their license. A welcomed change from my view.

Or you can go to my profile and see my posts from there. 

@Kyle Spearin I post the Vegas housing market numbers every week under a title like "How's the Las Vegas Housing Market Holding Up?" If you search for that, you may find my posts. That'll give you a good idea of what the market looks like now and over the past year. If you have specific questions, I may be able to answer them for you. 

We agents refer to our licenses as "the gift that keeps on giving" for this exact reason.