All Forum Posts by: Chris Teti

Good luck man. Try to put things in place that make it easier/safer for the seller but still not putting yourself at risk.

A couple things I've used successfully in the past are putting a cap on repairs. If the repairs are under $3K or $5K, the buyer will cover them. This gives the seller piece of mind that the deal won't fall through for minor issues during the due diligence process. It also protects the buyer in case something large is discovered. The other is an appraisal gap guarantee. I don't recommend blinding covering any gap, but up to a certain amount. It gives the seller piece of mind that the deal won't fall through or their won't be another negotiation of the appraisal comes in lower than expected. 

Unsecured loans directly affect your DTI. An unsecured line of credit won't affect your DTI until the balance starts going up.

@Account Closed You bet man. Good luck.

You are just going to pay higher rates than one secured with the property. I would recommend using the unsecured loan to secure the property with the goal to refinance out.

@James Elden I think I would probably secure some business capital (business lines of credit) and then connect with a good HML that can do a portfolio loan on a group at a time as one individually would be too low.

It's really a lender by lender thing. Keep working the phones, you'll find one. 

It might not be a bad idea, especially if you are looking for turn key rentals. Just be cautious not to over leverage yourself or to put too much debt onto your personal credit report. It will make purchasing more rentals tougher as your DTI shrinks with each property you buy. If you are getting the mortgages under the business, the DTI issue goes away but you will pay higher rates. if you find properties that need some work, you can then start to utilize the BRRRR model to make the #'s work.

You can get lower down payment %'s using HML's. Some of them have good long term rental rates (not 3% though).