All Forum Posts by: Darren Budahn

With that low of rent I would stay away. I don't see how you can make money on this

Katherine Wentz A small portfolio lender is going to be a local/regional bank or credit union in your area. They are going to be a way better bet in terms of getting a line of credit versus a national bank like Wells Fargo. You need to find one of these lenders that keep their loans in house, meaning they don't need to underwrite to Fannie/Freddie guidelines because they aren't selling off your loan. With that much equity, I'm sure you will find a lender that can help you although it may take a lot of phone calls.

Decline

Correct 

Unless you can remove the financing contingency from your offers, the cash offers will probably continue to beat you out. Unless you are willing to offer more than the cash offers then the seller might consider an offer with a financing contingency

You can get those terms from a portfolio lender. No, it's not interest only. 

The 6 to 12 month seasoning period is only if you are looking at conventional lenders. You can find no seasoning lenders but the terms will be commercial (shorter amortization, higher interest rate, balloon in say 5 years)

Adam Juodis Sure it can be done if you have people you trust to do the work or manage the project. But even if you plan on being mainly hands off and it's not a major renovation, i guarantee it will still take way more time than you think it will at this point :). Just the nature of the business. But you will never know until you jump in and do it. Good luck!

Are you looking for a bank to finance 100% of your purchase and repairs? That's not going to happen You can look at hard money lenders but even they will want probably 10%-20% of purchase price, especially if you have no track record.

They wouldn't necessarily have to be pre approved with a conventional lender (I am currently doing a refinance but with a portfolio lender) but it would definitely make sense to have an idea that you will be able to get the refinance done. And while the borrower's financial picture could change, I think the bigger risk is that the equity you thought you would have isn't there after the appraisal. This would mean you have cash left into the deal and make it more difficult to do the "repeat" part of the strategy.