All Forum Posts by: Debbie Fales

On this month's broker call, we are pleased to have Lisa Hancock, one of the founders of MarketPro Homebuyers, join us. Lisa will discuss wholesaling and how it can benefit your clients by expanding potential inventory. NavCap's broker liaison, Middie Rall, will also provide an overview of our current rates and terms for all of our loan programs. You won't want to miss this one!

To access the Google Meet directly on the day of the call, click here. 

Sounds like a successful BRRRR to me - congratulations!

Nice work! Renovating historic homes can be tricky given the restrictions that often come with the historic designation. Working with the State Historic Preservation Office can slow progress considerably. It sounds like you navigated the process well and made a great return. 

You didn't mention if the rental properties will be STRs or LTRs but I'd factor in a cushion for potential vacancies. You want to make sure that both properties will cash flow, and with higher rates, that becomes more of a challenge. You'll want your DSCR to be well over 1.0.

Good luck! 

Often, lenders will consider using a newer (after rehab) appraisal if at least three to six months have passed since you bought the property. This also assumes verification that the improvements have been made. This three to six months of seasoning allows the lender to reduce the risk in leveraging the property and pass along a more competitive rate and better terms to you.

Best of luck!

I agree that 90/100 is probably the best you can do. I would suggest completing the rehab as quickly as possible and then refinancing it into a long-term rental loan to unlock your equity. 

Good luck! 

It seems like new construction may be a viable option too, given the looming demand. That assumes there is undeveloped land to be had in commutable areas. Sounds like an exciting opportunity overall! 

Have you considered a cash-out refi to unlock equity in your current property and use it to secure a DSCR loan or a fix and flip loan (if repairs are needed) on your next property?

On this month's broker call, we are pleased to have Kris Anderson, head of the Anderson Agency — provider of specialty financial insurance to industry professionals including real estate investors. Kris will provide practical advice on getting your clients properly insured. NavCap's broker liaison, Middie Rall, will also provide an update of our current rates and terms for all of our loan programs. You won't want to miss this one!

Have you considered the BRRRR strategy? You're probably already familiar but, basically, here's how it works:

-Buy a distressed property that you can buy for a below-market price.
-Rehab the property, making necessary repairs and improvements to increase its value.
-Rent out the property to tenants, generating income.
=Refinance the property, taking out a loan that is larger than the amount you owe on the original mortgage.
-Repeat the process using the proceeds from the refinance to buy another property.

It's a great way to build generational wealth. Good luck!