All Forum Posts by: David Bilandzija

@Geoff Regan if the new place you are looking for will be your primary residence then a DSCR loan won't work unfortunately. That type of financing is intended for non-owner occupied/investment properties. You've still got options when it comes to financing an owner occupied purchase though.

FYI, non-permitted = illegal dwelling.  You could be fined for the violation.  Definitely look into the ramifications if you are thinking of renting it out.  A tenant could potentially sue you for renting them an illegal dwelling.

@Alec Esenther Real Estate Meetups are great place to build your knowledge base while expanding your network.  Here's a link to meetup in Milwaukee later today.  Good luck.

https://www.biggerpockets.com/...

@Alon A. 100% financing, none of their own money in the deal...   terms like that are few and far between but they do exist. Experience and a verifiable track record involving a heavy volume of successfully completed projects is the key.  If this is your first deal, plan on doing many more before getting terms similar to the people you have talked to.   Or ask the people you've spoken with what it takes.  

interested

This topic is getting a lot of attention lately.  I first learned about it from a youtube real estate channel.  I did a quick search and discovered that AllTheRooms, the source behind the story, is data analytics company that studies the short term rental market.  No comment on the accuracy or reputation.  Here's a link to their website https://alltherooms.com/  

@Tim Flickinger Several DSCR options available through different lenders in the Chicago market. Finding the best suited option is where an experienced, up-to-date mortgage broker can best serve your needs.

@CJ Berina @Jolene Blazey Excellent meetup, thanks for putting this together. See you at the next one

@Jason K. US Treasury bills are paying up to 5.2% on shorter term maturities.  CDs and high yield savings can’t compete especially given that there’s no state tax on federal bonds.   Safer than any bank or government on planet Earth.  Great place to park your money without any penalty on early withdrawal/sale.  At least earn some interest before you make a bigger investment move.  

@Haley Cisar current national average interest rate for HELOCs is 8.48%. The interest rate on a HELOC is adjustable since it is tied to PRIME which is tied to the Federal Funds Rate. It can change whenever the Fed moves rates.

A DSCR loan can range anywhere from the high 6's to 8%. Moreover, a DSCR loan will give you assurance of a fixed payments for period of time you are comfortable with. You've got the option of going with an ARM, fixed rate or long-term interest only program, generally based on a 30 year term. 40 year options are also available.

I'd recommend working with a mortgage broker that can price out different options for you based on your credit profile and experience.  

If its appreciation your banking on and you plan to use the property as your primary, consider the rules on capital gain exemptions.  If you live in the property for at least 2 of the last 5 years of ownership, a single filer is exempt from paying taxes on the first $250,000 of capital gains; $500,000 for married folks.  If you decide to rent the property out and end up declaring it as a rental on your tax return then a 1031 exchange will be a good option.  -Fellow D.B.