All Forum Posts by: David Bilandzija

Does anyone have a tax person they'd recommend? I live in California and have properties in Columbus, OH. I'm open to CPAs all over the states but I've heard it might be better to get someone in California because of our specialized tax laws. I've used the same tax guy for over 20 years only because he does the taxes for my parents and their business. He's a few hours away from me so I'm used to working remotely with a CPA. He doesn't give me the attention I require and sometimes doesn't even return my e-mails. I'm ready to move on and find someone who can help me grow my RE portfolio.

@Allen Tracy Try Chris Alexander. He's in Woodland Hills. My situation included investment property in Arizona. He's easy to reach, knowledgeable and just down the road from you in Woodland HIlls off Ventura. Good luck.

http://alexanderhansoninc.com/

3 Votes

Quote from @Tarik Turner:

When dealing with properties of a smaller value you might have to package them together in a blanket loan to meet certain DSCR lenders criteria.

@Derrick Wortman I agree with Tarik. A blanket loan can help you get your foot in the door with lower values on individual properties. Presently, $75k minimum loan amount and $50k minimum asset value is what I'm aware of. Downside, is all the properties get encumbered with no partial release. But hey, it's an option and a pretty darn good one if you need to tap equity with a 30 year fixed term.

0 Votes

Akron, Ohio

@Ed Otero I'm in the LA area and definitely interested in meeting up.

1 Vote

Los Angeles County, California

@Zach Proto Full disclosure, I broker these types of loans. Your requirements are doable. I'd recommend working with a mortgage broker who has a focus on DSCR/investment property loans. Build a relationship with someone you trust and let them present you with options best suited to your goals. Best of luck!

0 Votes

You have two options.

1. You can buy directly through the US Treasury website or

2. You can go through your brokerage account like e-trade, fidelity, schwab etc. I recommend going through your brokerage account the US Treasury website is clunky.

2 Votes

Boston, Massachusetts

Alternatively, no state/local taxes on US Treasuries and you can buy something with a short maturity, like 13 weeks. If you park enough cash with the right brokerage you can often times pick up a nice promotion bonus.

If you don't need to tap the balance this could be a good alternative over a fully taxable high yield savings account or CD.

0 Votes

Boston, Massachusetts

@Jewel B. Congratulations on reaching the refinance stage with your BRRRR. You can certainly take a stab at approaching lenders on your own just know that using a mortgage broker can shorten up the process and potentially save you capital in the long run.

Programs are always changing and what works today may not be around tomorrow. A qualified mortgage broker can hone in on your profile and offer funding solutions that best suit your specific scenario. Then there are the intangibles as well, it frees you up to focus on your projects, work or even finding that next deal. Best of luck!

5 Votes

Quote fro:

I plan to start my search of houses this quarter and planned to get a prequalification letter first. With it I can have a better idea of the price range I can afford.

I contacted BOA and Chase loaners. And they all told me that they are only willing to provide preapproval letter, but not prequalification letter.

Can you help share some insights why bank loaners do not want to provide prequalification letters?

I do not want to get a preapproval letter now as I can not afford the credit score decrease if I can not find the right house in 90 days. My current credit score is around 750. If I do a hard pull but can not buy a house in 90 days, I am worried that I can not get the best interest rate after a 20-50 credit decrease.

Any suggestions how I can get a prequalification letter?

@Leo Sun While it is wise to be responsible about pulling credit, I certainly wouldn't overthink it. It your are ready to make offers get comfortable with having your credit pulled.

0 Votes

San Jose, California

The pitfalls aren't fully understood yet. Short term rental arbitrage is fairly new and it hasn't been tested by a significant down turn in the overall economy.

0 Votes

Quote from @Steven Dzuris:

I am a new investor and have been following bigger pockets for about a year. I now feel confident with the underwriting after doing 100's of practice listings but confused on the financing. My scope is c+ single family or duplex under 150k to BRRRR. I recently found a duplex in my area and was going to make an offer. I contacted my agent who happened to also be the listing agent and she told me to get a preapproval first before I submitted the offer. I spoke to my local banks lending officer and explained what I wanted to do. I told her upfront I wanted to get a preapproval letter, 30 year term, conventional loan 20% down. I told her I had a partner for the property for this duplex I was looking at but I wanted the mortgage in only one of our names , we would setup a JV for the property. She told me she only will do a 25% 15 year term, conventional, and both of us had to be on the mortgage. I didn't go any further, the property went under contract 2 days later. I was fine with the 25% down but was confused by her only offering 15 year term.

The question I have are:

1. Is it normal for banks to only offer 15 year terms on investment property.

2. Is there a different structure to purchasing an investment property with a partner with one partner getting the financing?

Any help would be appreciated

@Steven Dzuris Congratulations on taking the plunge!

Answers:

1. I believe the bank you approached may have special guidelines and shorter terms for investor loans. 30 year financing is the rule rather than the exception. Banks are touchy and not always easy to work with, especially when borrowers have little or no track record.

2. An entity is generally required by lenders that write DSCR / Business Purpose Loans. Lender guidelines will vary when it comes to ownership % requirements between partners where the objective is to have a non-borrowing partner.

I would strongly recommend working with a mortgage broker that understands your loan structuring goal. They will be able to advise on ownership percentages when applying for and structuring your next loan.

Good luck locking down your first deal! Shoot me a message if you have any questions.

0 Votes

Minneapolis, Minnesota

All Forum Posts by: David Bilandzija

David Bilandzija has started 4 posts and replied 168 times.

Post: California CPA Recommendation

Post: Need a DSCR Lender in Ohio ($40-100k loans)

Post: Real estate investor and property manager

Post: DSCR loan With no prepayment penalty

Post: High yield savings account ?

Post: High yield savings account ?

Post: Shopping Lenders and Preapprovals: HMLs and Refinancing

Post: Why loaners only provide preapproval but not prequalification letters?

Post: Airbnb Arbitage - pros and cons

Post: Multifamily financing with a partner