All Forum Posts by: Eric Johnson

Okay... Why are you set to borrow 130k, when you don't have an exit strategy? You don't have a bank lined up that will do this deal? I never close if I don't know what the exit looks like. 

Arn, have you been to the area? You can probably find out a lot just by doing some google earth research to see what the streets look like, where the main commercial corridors are etc.

Also, i love to check niche.com because they have resident reviews and tells you some good insights on the area (as if you were going to live there). 

GL

John, if you're going conventional then you just have to talk to your local banks and see what they offer. Portfolio money is the bank lending their own money without having it to sell to fannie/freddie, but they most certainly have their own credit box. 

You're probably not gonna see the offer you're looking for in today's environment tbh. Doesn't hurt to make some calls to confirm though.

Jacob, check your FHA options, they are a great alternative for low DP house hacking. Check with your lender partner on that.

Sharon, without all of the documentation in hand and knowing exactly what loan we are trying to structure, it is nigh  impossible to answer your questions. The best one to answer this is whomever you are getting a loan from...

Try any local bank that has a 10/1 arm portfolio capital program. They are lending their own money on deals like that and don't have to sell to fannie/freddie. If you can get 30yr fixed at 85+LTV going conv. agency, then go for it. Shouldn't be that hard to call some local places.

Honestly, shadowing people and actually talking to investors about their own deals is the best thing for you to do. When you're that young, it's about learning how to learn and integrating those principles into practice.

Do not rush in and make decisions & do things you have no business doing. Podcasts/books really don't mean anything and honestly don't set the expectations of how quick, nimble, and smart you need to be to get a deal done.

Do you know anything about construction? How plumbing, electrical, HVAC, & roofing work? I'm saying this because if you need to make repairs, you will probably get raked over the coals from contractors and you won't know who is right. 

Not saying it's not possible, but real estate investing is a serious game of chess. Don't be in a rush.

Daniel, 

A triplex is under 5 units, so it would be counted residential. I'm assuming you got conventional financing to purchase (ie an agency loan)? 

If so, 4.25 not bad, assuming you paid no points. I'm seeing 1.50-2pts get investors around 3.50 on investor occupancy purchases.

@Timothy Hero has a good point, you should look at the benefit of the cash-out funds, as a comparison to ROI where you are now, and where you would be if you did this refi and paid off a property (the +$400/mo or w/e). Would buying another property with the funds result in a higher total ROI for you instead?

Todd, I agree with Jay. Do you know how to evaluate if a claimed "lender" is pulling your chain, or just phishing for your information?

  Are you trying to purchase a property?