All Forum Posts by: Dustin Phillips

Okay you will still need to talk with a local bank. National lenders have a death grip on their guidelines and it gets more and more difficult to refi conventional loans. If I were you I would just go and talk to a local lender and find out if I would be able to qualify for a loan based on my income, credit, etc. If not then there is your answer...

IMO... If you plan to refi a HML why not just find financing with better terms and rates... Go to your local bank and talk with them about seting up a portfolio loan. Instead of having to refi in 6mths to a year you can just put yourself in a position to carry a loan that is cheaper and if the bank decides that you need to refi out of there "in house" loan and into a conv. loan they should be willing and able to do it since they wrote the loan in the first place. Call several local or even regional banks and tell them what your finances look like and they will tell you if they can help- That will also give you an idea about your original question if you do decide to use HML's. Good Luck...

Ritch feel free to give me a call (Numbers below) I can refer you to some local portfolio lenders...

Dustin

Yeah

put down the phone unless it (title company) was referred by another investor doing deals. You will waste a lot of time and get discouraged calling out of the yellow pages. Instead pick up the phone and call every investor you can find in your area and ask them who they use.... You will get where you want faster and make some really good contacts... Good Luck...

P.S. you will need to ask if they will double close using your buyers funds. Some will double close/simo close but not with your buyers funds. I'm only assuming that you will need to do this if not just ignor, thanks...

S B

Type in 50% and 2% rule in the search box to get more detailed info... However, a quick synapses is that in order to own a property all expenses will run you on average 50% of the Gross rents... This includes everything you can think of and things you may not. That leaves you with your NOI before debt service.

The 2% rule states that you would want 2x the purchase price + rehab for rents (I.E. $100k property would yeild you $2k in rent for it to be a good deal). Again search more on the topic...

Good Luck

Hi Jon,

Welcome and yes your thinking cap is on straight! You will want to use the search box to get started upper right hand side of the web page. Look up the 50%-2% rule. Network with everyone you can in your market and participate here on BP.... There are a lot of smart people here (Rich, Will, Jon) plus many more that deserve credit. Follow some of them and read.
Also the best thing you can do is start shopping for deals (action). However, before you put up any contracts post the details here and you will get a ton of feed back letting you know if it will fly or fall like a lead turd:) So dig in and enjoy...

EDIT:
Jon beat me to the post so just follow what he says and you'll do fine...

Good Luck...

I just killed a deal that I was JVing. I have the property and another investor brought the buyer. I was told that there would be a portfolio lender and that no seasoning was required. However, not taking anyone Else's word I called the lender and they are under Fannie Mae guidelines and do have seasoning requirements. I had to put the Kibosh on it... It has to be a none seasoning lender like Nick said...

Hi Rich,

My wife is from Spokane, unfortunately, I will not be there. However, maybe you can blog about the experience. Details about the property, process you go through, and if you get the property or not! Just a quick synapses...

Good Hunting,
Dustin Phillips

If you have the time and think it will help your business then yes. If you have access to the MLS and just want to "invest" then no.

I have access to the MLS so I did not see the benefit in going through the course to get licenced. Though some have a differnet view it is a personal choice...

Hi Ryan,

I do not set it up until after the offer is accepted. So if I make an offer "123 Main LLC", and that is the buyer. I will not set up the LLC until after the offer is accepted. I already have everything in place through my attorney and it cost me around $150 bucks now. I am making 3 to 5 offer each day and that would not make sense to set up each LLC. You should see an attorney first, have it set up and then start to make offers with LLC's if that is what you want to pursue. When you sell to your buyer you are selling your rights to the LLC which gets around the assignment issue with banks, because the owner "123 Main LLC" does not change only the "manager" or "director" of the LLC. I recommend you speak with an attorney... Good Luck