All Forum Posts by: Darren P.

Thanks for the reply.

My situation is VERY different as I have flatline credit in the US. As in NOT BAD ...NOT GOOD... as in NONE.

But that is a different topic that has been talked to death.

I was thinking along the lines of what you were saying though.

I will treat them like 30 years fixed for now for calculation purposes because eventually they will be.

Thanks for the reply.

My situation is VERY different as I have flatline credit in the US. As in NOT BAD ...NOT GOOD... as in NONE.

But that is a different topic that has been talked to death.

I was thinking along the lines of what you were saying though.

I will treat them like 30 years fixed for now for calculation purposes because eventually they will be.

I am a somewhat newbie BRRR investor.

Right now I have 3 properties and I am thinking of 2 more to keep momentum.

When I bought those 3 it was with my own cash so cash flow was great (ignoring other aspects).

Now I have decided to borrow against those 3 to fund my next 2 properties.

With what I have learned I can now easily tell if my properties will cash flow with a mortgage on them.

Here is the problem ...

I can only get a 15 year fixed at 5% ( long story that I do not want to get into here).

With a 15 year fixed the mortgage is higher and attacks my cash flow.

When I run the numbers on a prospective property with borrowed money I can barely eek out any cash flow and even worse, some are negative.

This really got me bummed out and stunted my enthusiasm :-(

But then I had an awakening thought!

With those high mortgage amounts on a 15 year fixed I am gaining equity at a much faster pace !!!

So that begs the question...should I continue with flat or slight negative cash flow or back away ?

Am i missing something here ?

BTW, i work a good full time job so i do not need the cash flow to live on.

Thanks in advance for any help and I would respectfully ask that we stay on topic ( no contacts or comments on "helping" me get a 30 yr fixed...please assume that effort is exhausted...for now at least)

Hi Ned, thanks for the info. I agree on your "FREE" statement and that is something I preach myself to others. I don't mind paying for value. I don't expect "everything for free"...in fact, practically nothing is. What I don't like are these sites that charge and then you find out you are paying for public knowledge. Kind of like paying for Zillow or realtor.com

Is there such a website or something where foreclosures are listing.

Note: I am a long distance investor

thanks

I am a Canadian/American dual citizen. 

I have VERY good credit in Canada. 

I have NO credit in the USA. 

I have great income in Canada and no debt. 

I have no income in the US other than recent rent revenue from properties

I chose to invest in the US because that is where I plan to retire in 10-15 years

So I purchased 4 properties (all with cash). 3 of which are single family homes being rented and with reasonable cash flow. The 4th property is simply a strategic land holding.

So here I am with 3 solid properties, all generating rent revenue...….ready to start BRRRing ...and the banks and mortage companies won't lend me any money to keep moving :-(

Their reason...I don't have credit in the US...as in NONE...no score. 

One of them said I should get a small secured credit card and exercise my credit for a few months and reapply...(I don't believe this will work...I mean, come on... a few months of tiny credit purchases? Am I wrong...perhaps this will be the key?) That's the same BS the bank told me when I was 20 yrs old and got turned down in Canada for a small car loan.

One of the banks said that I would not be able to get ANY of my properties financed because I had no US income beyond the rent revenue (and less than a year with those).

All of this was very disappointing as I never read any of this in the BRRR book. I thought it sounded easy. Buy property with cash, reno, rent it, refinance. Didn't realize credit or employment income would be a factor

I thought it was elementary as I have good solid properties...no debt other than the regular stuff that comes with prop ownership (Taxes, Insurance, Prop Mgmt).

Not sure what to do

Any tips would be appreciated