All Forum Posts by: Debra A.

I am interested as well! This sounds like an amazing opportunity to meet some great people in the industry and learn. I am putting it on my calendar! 

There are programs out there that will let you cash out and should be able to close you in an LLC.

@Xavier Wharton If you want the cheapest possible payment, interest only option would be a good idea. I know of a 10 yr IO 30 yr fixed mortgage. 10 years interest only then it converts to a regular fixed rate for the next 20 years remaining. 

Why are you opting for a HELOC?

Or you could look into a private lender that specializes in mortgage products specifically for real estate investors. I even know of products that just look at the potential income the property itself could generate, and in some cases they don't need to even consider any outside income at all. There are many different options out there. Just have to know the right loan officer.

@Charlie Lehoux Your best bet would be to look into applying for a real estate investing specific mortgage product. The reason being your income. With certain products, you can actually get the product tailored to account for "potential" income based on the expected rental income- even before occupancy in some cases. The qualified income would essentially be based on nothing more than the residual income potential from the property itself- not your personal income. 

The extra months on top of the 12 months up front is for "cushion" because you are not going to make your mortgage payment typically until the 2nd month after closing, so your escrow account will not be replenished for those two months you are not making a payment. You'll be behind two months in terms of your escrow balance. So lenders collect what I call a "cushion" to make up for that, so when you start making your payments your loan is on track. When your taxes and insurance become due, you will have enough, and probably a little extra, to pay them.

@Rob Anderson Congratulations! What are you thinking of doing first- buy and hold or fix and flip?

Good Morning @Sheng Wong, 

It really depends on the specific mortgage program that you are applying for. There are programs for instance that can look at other factors, besides just your W2. They are tailored specifically for real estate investing.

@Bab Adetiba I am a little confused at the question - what do you mean ltv upfront? Loan to value up front? As in, do they offer you the cash based on the appraised value AFTER the rehab work is done? Yes, you just have to know a mortgage lender that offers products specifically for that situation. An FHA 203(k) is made for exactly that, but they typically don't allow the funds to be used unless it's going to be your PR.