All Forum Posts by: Brandon Beardt

 Hi Fernando,

I don't see why other lenders were requiring that you would need to occupy it as your primary residence, seems strange. I guess it would depend on the type of lender you are using and their guidelines/rules. If you were to take a cash-out refinance on the two investment properties that are free and clear, there would only would be a new lien/loan on those properties themselves.

 Hi Fernando,

There are a few different strategies you can explore in order to utilize the equity that's built up in your 2 investment properties. You could try and find a lender who can offer you a HELOC on those investment properties. There aren't that many of them, but I'm sure they're somewhere out there. Alternatively, you can do a complete cash-out refinance on both properties and take out the amount of equity you're qualified to pull out. Both options give you what you want, access to the equity to utilize for additional investment property purchases. The cash-out refinance option will most likely be the easiest for you to attain. Best of luck!

 Hi Gabriel,

Congrats on looking to purchase your first FNF! Maximum leverage in this realm typically depends on your previous RE investing experience, either buying or selling investment properties within the past 36 months. I don't think I've seen a program where the lender is offering 90% LTV of the current as-is value, especially if it's your first investment property. Usually I see offerings of up to 90% LTC or 70% LTV of ARV with the rehab 100% financed. There are quite a few different FNF programs out there so it would definitely be beneficial for you to research the different options you have. Best of luck to you!

 Hi Brice,

I'd recommend working with a mortgage broker and going over your current situation and what you are trying to accomplish. Mortgage brokers have access to several different types of lenders who have many different loan products themselves. There are a wide array of different loan programs out there and depending on your specific scenario, some programs would make more sense for you than others. This will also save you the trouble/time of having to contact multiple banks/financial institutions. Best of luck to you!

 Hi Carlos,

Yes there are quite a few loan programs out there that are specifically designed and geared toward BRRRR deals and investors. These are usually shorter in term, 12-24 months (but you typically don't have to/need to carry the loan for that long), and interest only with a fixed rate. You'll get partial financing for the acquisition (purchase) as well as 100% financing for the rehab. Once you complete the rehab, you can easily refinance into longer term financing. It's very common practice and there are many forum posts regarding this type of financing. Best of luck to you!

 Hi Josh,

To answer your question, yes, it is possible to refinance a HML into long term financing. Most people who intend to rehab properties purchase the property with a HML, rehab the property, and once the rehab is complete, refinance into long term financing based on the new appraised value. Just be cautious of different lenders Title seasoning requirements (some lenders require you to be on Title for a period of time). Best of luck!

 Hi Manuel,

There's no 1 easy way to get started. Like you said, I'd recommend talking to a few different lenders/brokers to go over your current situation and your RE investing goals for the new year. This will help you gain a better understanding of the loan process, what lenders expect/look for, and the tools that they have to help you succeed. I'd also recommend looking through the Bigger Pockets forums, reading some different posts, and LEARNING. There are many tools available on this platform to help people such as yourself. Take advantage of the resources and best of luck!

 Not that I've seen personally. Lenders typically want you to have some kind of equity in the property you are purchasing for investment purposes. You may have to look into private money where they'll cross collateralize your other properties to make up for the lack of down payment funds. Best of luck to you!

 Hi Beau,

Bridge financing options may suit your needs for this scenario. These are short term interest-only loans, but keep in mind, you'll still need funds available for down payment and closing costs. Since you may not be able to use the proceeds from the spec builds, do you still have these funds readily available?

 Yes, I do. I'll go ahead and send you a PM. Since you've been on Title for less than 6 months, you won't be eligible for a full cash out refinance based on the property's current value. The lender will likely base their leverage off the original purchase price + documented rehab.