All Forum Posts by: Dallas Sauer

What will need to be done when a mortgage loan originator (who already passed the SAFE test and got the selective state education done) wants to become a mortgage broker to work for themself, so their commission won't split up? Thank you.

Quote from @Jay Hurst:

Quote from @Clay White:

Quote from @Jay Hurst:

Quote from @Clay White:

Hey y'all. 

I completed my first BRRRR on a SFR a few months ago. Was able to pickup a duplex as well under the same criteria, and currently have two more SF BRRRR's ready to close and ready to rehab. I received a conventional loan for the duplex, have one of the two SFR for cash, and the last from the refinance from the first BRRRR. My lender let me know that I'm exceeding my Debt to Income and they wouldn't want to loan out anymore without a significant increase in income. My question is, if the right deal came along, I would certainty want to throw my hat in the ring, but with the lack of traditional financing or BP lenders (rural midwestern state), what options would I have to continue on?

 @Clay White How does your lender know? You will get to use 75% of the rental income of the new property you are buying. so, if the PITI is 800 and the rent is 1000, you would get credit for 750 a month. That would mean you will only have to carry 50 dollars from your income and the rental income from the properties you already own. if the rent covers the whole payment then you do not even have to do that!

Right, and that's a great point. The issue I am running into is that it isn't scaling. So the math checks out, and each property cash flows enough to pay off the PITI at less than 75%, but lenders are looking for the 40-50% DTI, which wouldn't be satisfied even though the property covers PITI +.

 well, that does not make sense IF you were able to buy previously using conventional and  IF the rent is covering the mortgage payments UNLESS your day job income has gone down. I notice you are an agent so that income can obviously be up and down.  

Agreed. The income is the same and still consistent. As far as the DTI, my local lender runs the income as a rolling average, which has been kept the same since the first loan. My rental income is added to my traditional income, but the added $800 in cash flow isn't in flow with what new mortgage payments would be on a different DTI. At my banks 50% DTI, I would need to cash flow double any PITI to be in that 50% DTI loanable range even though each property is cash flowing. 

I picked up a house in Sep. for 577k with an ARV of 800-810k.
I took hard money, note of 522k.
Paid for the down and renovations out of my pocket ~57k+130k. 

Selling will make a little money, but it’s not a ton. The house is great, great location and we remodeled it a little nicer than we originally planned given the strength of the location. 

We’re considering refinancing instead and putting renters in for at least a year. 

I’ve talked to a couple mortgage folks and haven’t gotten any great options yet. 

Anyone doing 80-90% cash out on investment properties? Maybe even IO products?  
Thoughts / Suggestions?

Quote from @Wayne Brooks:

@Phil Shelton I don't know why you think you'll save money with a HML….they Are the broker (using other people's money) generally.

even if i use a mortgage broker? isnt the broker making money on top of what the HML charges?

Hello everyone I’m a general contractor located in Buffalo looking into funding options for my first fix and flip, mainly looking into hard money lenders. I have a property in mind and only enough money in the bank for about a 15% down payment leaving me with enough to do the rehab comfortably.. most lenders I have spoken too require 25% down. Anyone have any lenders they recommend?

Most Reputable HML that I know of require at least 2 like builds. I'm sure there are programs floating around out there that will do a 1 or maybe a 0, I have never closed a GUC deal. Been involved in two of them and both fell apart during the process.

I'm not saying it is impossible, nothing is.  But it will take time to find the right lender and I'm sure they will have a laundry list of conditions that need be satisfied.  Lenders shrink the box up pretty good in their bottom bucket GUC programs.

Thanks guys, I guess I was thinking about it the wrong way. I wouldn't need a contractor partner, just an investor partner that has done new build projects before. But all the lenders I've seen so far require at least 3 new build projects as experience so if you know any lenders that have lower requirements let me know.