All Forum Posts by: Michael R.

Podcast 55 should give you some insights. In this podcast is discussed how difficult it can be to underwrite for foreign investors; however if you have income being deposited monthly, as long as you can provide the financial documentation to trace the money that may help the situation. It is also discussed about how to organize your documentation for presentation to investors.

Other than that - your DTI ratio's could be impacting the situation as well.

I hope that helps.

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What's the purpose of the additional 20K?

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@Bryan can you help me understand exactly why you cannot get financing?

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Podcast 41 has some great examples of lease options.

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@Nicole F. Sell or Be Sold girl!!! I am a big fan of GC!!!

So - with regard to the hard money loan (disclaimer - this is all from podcasts / books and conversations with hard money borrowers - no actual experience so take it as is) -- hard money is typically, as advertised above, short term (6 months to 5 years in some cases from what I have heard/read). This also translates to expensive (as 10-14%). So hard money is typically used to finance a flip with the intent of refinancing out of that hard money loan after 6 months or so depending on terms.

So my question is - from the folks that have advertised the hard money to you, what are their terms? Can you afford their terms? What is your exit strategy to go from their hard money to cheaper terms if that is part of your plan?

Another option you may consider is looking for a lease option that is a duplex. Again, I don't know your market, but you may look to that as another option.

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Originally posted by @Account Closed:

Hi everyone! Thank you for your thoughts.

For future purchases, is an equity loan or equity line of credit the better option?

And is there such thing as a FIXED RATE equity line of credit?

I honestly don't know, I've only used VA, FHA and conventional loans up to this point-- discuss that with your lender ant CPA.

Also, I spoke to my accountant about my plans. At first look, he recommended an LLC while purchasing this property cash. Once I told him that I plan on financing around 75% of each additional property, I asked him if the benefit was still there with an LLC because if a property is deeded to an LLC, am I going to be susceptible to commercial rates, terms, and insurance policies on the properties? After I brought those questions to him, he retracted the idea of getting an LLC and said to keep them in my name so I won't be paying higher premiums on rates and insurance with shorter terms because everything would roll over to commercial standards if deeded to an LLC. Also, I did not even consider SBA loan because I didn't consider the LLC option to begin with.

Sounds like you have a good accountant. Speak to a lender about how you could borrow against your current property. Also, check Podcast 55 out in the meantime - that should provide some insight.

I hope that helps.

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Originally posted by @Nicole F.:

@Cal C. thanks I will use zillow for comps on other properties

@Michael R. , @Chukwudi Motanya is right about philly's crime being a block by block case. My grandmother lives a few blocks away from the property further into southwest and my church is in the "bottom" as most Philadelphians call this part of west philly.

@Aleksandar Popivoda, you're right I do need to become more comfortable and knowledgeable about REI, I am considering going for a real estate license for that reason.

@Chukwudi Motanya I am looking for FHA financing but if I can't qualify I'm considering hard money

Sounds like you know your market well. With that said -- what would be your plan for going after hard money?

I just met with some investors at a BP meetup -- a hard money term loan one investor had was 6 months @ 14%.

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Originally posted by :

I'm just starting off and have been a lurker here for quite awhile. Been told the first 5 properties are the hardest and just trying to get creative.

.....

I've seen a few threads discussing using home equity to expand and purchase more and more properties too. It might be too early on for me to be testing that tactic...

I think you've got it here. I'm a big fan of simple. The longer you can keep it simple the better. Run the numbers to evaluate if it is worth it. I refinanced my primary residence last year and it will take me 1 year to earn those closing costs back through my lower interest rate. If you have VA financing and can buy a new multi family right and get great rents -- then go for it.

The fact that you have a strategy is awesome. Now you need to run the numbers to find out what makes the most financial sense.

I hope that helps.

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All Forum Posts by: Michael R.

Michael R. has started 5 posts and replied 242 times.

Post: Closed on my first investment property

Post: Sold! House flip $83,000 in Profit

Post: Have money, cash flow and collateral, but no lender!

Post: What would you do? Seeking simple advice on a deal

Post: Have money, cash flow and collateral, but no lender!

Post: Need help analyzing 1st deal for house hacking

Post: Need help analyzing 1st deal for house hacking

Post: Excellent credit but self-employed

Post: Need help analyzing 1st deal for house hacking

Post: VA Home loan Refi