All Forum Posts by: David Bilandzija

@Bao Da I've seen plenty of these. You have a non-conforming property.  Commercial zoning = commercial appraisal but you have a residential property which requires a residential appraisal.  Lenders and appraisers will have a harder time with this.  Try pulling the public records on your property, like a property profile, check to see whose made a loan on it in the past. 

@Robert Anderson No can do If we are talking first time home buyer programs i.e. FHA. Loans cannot be made to an entity, same for Fannie/Freddie loans. Purchasing as an individual and then transferring to an entity afterwards is not an option either.

Private lenders (non-conventional), will allow you to vest in an entity. 

@Abraham Shamosh You have a historically low interest rate on your investment property. Best not to disturb it with a cash out refinance 1st mortgage but you still need access to the equity. That leaves you with a couple of options, 1) HELOC, home equity line of credit 2) 2nd mortgage, cash out refinance. Both of these options are going to carry a high interest rate but they'll help you come up with the cash needed for your next down payment.

A DSCR loan would be your best option for financing your next acquisition. DSCR loans ignore personal income/DTI and will qualify you based on credit and experience. You have the experience and I'm assuming your credit is good. The only other requirement is that you have skin in the game i.e. down payment for the acquisition.

@Thom Ruley  Cash flow is king my friend.  Keep looking and don't chase properties that can't meet your minimum requirements.  There is no guarantee that real estate in your market will continue to appreciate.  Cash flow will insulate you from down turns in value and helps you wait out periods of stagnation.  Think back to the GFC where markets nationwide suffered huge price declines. Long term investors holding a portfolio of well managed cash flowing properties were able to weather the storm and pay down principle.  Values eventually swung back and then some.  Happy hunting.  

@Colton Hector The theory on the matter reads like this... Economic obsolescence refers to the loss of value of a real estate property that is caused by factors that are external to the property. 

Proximity to major highways, airports and landfills are a few examples of situations involving economic obsolescence in real estate.  Not a deal breaker but certainly something to be aware given the impact on desirability.  

@Sly H. Your property is a white elephant and on the special purpose side of commercial real estate.  70% loan-to-value, 30% down on an office condo property is competitive.  While there may not be an operating condo association, the lender you ultimately go with will treat the property as an office condo because of its configuration.  If I were in your shoes, I would shop for financing on office condos and like you did here, point out that there is no association.  Leading with this will serve you best in your search.   One last thought, ask the community bank you are working with if meeting a depository requirement (personal/business) will move the needle on the extra leverage you are seeking.

@Hung T Nguyen try connecting with Houston area wholesalers 

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

@Scott E. Good info, thanks for sharing.  Had no idea these laws existed

@Maribel Manibo It sounds like you are already recognizing the pattern in the industry. Before getting my broker's license I spent 10 years working for a direct lender.  We are talking nationwide, wholesale, private money with billions in assets under management.  This lender got its loans from mortgage brokers it approved to do business with.  In that time I learned that the waters are purposely made to be muddy when determining the source of funds.  The wholesale lender I worked with offered a table funding program to the brokers in its network.  They took steps to help table funding approved brokers feature themselves as the source of funds.  Conditional loan approvals and loan applications were white label and loan docs were issued in the table funding broker's name.  At closing the loan would then be transferred back to the actual lender.  The program was effective at concealing the source of funds and it was implemented to attract mortgage brokers looking to enhance their business.  I witnessed several instances where non table funding brokers (approved by the same lender) submitted their loans to other table funding approved brokers.  In short, there are a lot of participants in mortgage lending that aren't who they say they are.  

Investigate, ask around, try checking the Scotsman guide.  Experience and time are the only ways to really be able to tell what's going on behind the curtain.  Good luck.

@Justin Madison bank statement loan programs are ideal alternatives for credit worthy self-employed borrowers.  Borrowers generally furnish 12-24 months of bank statements and a statement from a tax preparer/CPA.