All Forum Posts by: David Bilandzija

@Anthony D'Angelo I'm an active mortgage broker that focuses primarily on investors most of which happen to directing their attention to out-of-state properties.  Tennessee comes up quite a bit in my conversations with investor clients or when I'm out networking.  Some of pros that I've heard... 

* "It's a red state (land lord friendly)"

* "rent to value ratio is attractive"

* "growing populations, job growth and migration" 

I realize these remarks can be construed as anecdotal but they come up with frequency nevertheless.

@Ashley Guerra You've given a lot of thought to your plan and strategy. A few things to point out as your hear recommendations for alternative financing, i.e. DSCR loans. Keep in mind, that general underwriting guidelines disallow first time buyers from these types of programs. Don't let that discourage you, and certainly don't think that your options are then limited to conventional financing. I have advised clients in your exact position. The work around I generally recommend is using a hard money bridge loan. The downside is cost and leverage. You may not be able to get a high LTV loan with hard money but the requirements to get financed will be less rigid. The tradeoff is you'll have to bring a higher down payment. You can always refinance with a DSCR loan after 3 months of owenrship at the full appraised value. Another idea, purchase the property with a partner. Perhaps a family member, who owns real estate can partner with you to get around the first time buyer restrictions with DSCR lenders.

@Steven Garza  sent you a message

Here's why I ask... if you're a first time buyer you'll face a difficult challenge satisfying lender guidelines.  I'm thinking of your traditional non-qm/business purpose loan types.  

@Pratap Bhandari Typically, max LTV for office is 70% but that is generally found in primary and secondary markets. My number 1 recommendation is speak with your local credit union. If that doesn't yield any results, I would advise you to lower your expectations for high leverage. Adjust your sights to 65% and below. Hard money isn't designed for high leverage, i.e. above 65% LTV.

@Yushengji Zhou Hi Roger, do you own your primary residence or will this upcoming purchase be your first time buying? 

@Imdad Rahman to get that kind of leverage on rent ready properties you'll need to find secondary financing. One of our wholesale lending partners will allow a maximum 90% CLTV on a transaction. Lender provides a first position loan up to 75% of purchase price combined with seller financing not to exceed 90% CLTV.

@Santosh Prabakar DSCR loans have varying seasoning requirements depending on the lender. You've likely added value and increased your equity position. Refinancing to a competitive rate or even taking cash out based on a current appraisal should be your goal. Our team helps investors refinance at a minimum 90 days of seasoning.

@Amanda Shilling If proximity is part of the equation, consider Las Vegas and/or Phoenix. Both markets have had their fair share of price appreciation but a return on investment is achievable as long as you don't apply high leverage at acquisition.