All Forum Posts by: Evan Battaglia

If your getting a HELOC on your home to pay you would need two years tax returns. A job change is ok as long as there isn't a gap in work history of over a month. Commercial loans are asset based and don't require a 4506T aka income tax form. You will need enough liquidity to support the loan; usually you can leverage 3 times your liquidty with no experience for fix and flip. Rental loans don't require experience. Bring in a partner if credit score is below 700. Contact a lender to set up your line of credit rates start at 6.99% interest only for fix and flip.

The problem is a rental loan requires unit to be rental ready and you would need a partner to meet 600 credit score. If you have poor credit you would get a FHA HELOC which would be costly if your current home rate isn't high. As of last week rates were starting 5.25%. Could you borrow from a friend and offer a portion of first year rental income? Create a scope of work for the 10k budget to try to stay on budget and identify possible ways to save money for your project.

Look into private money, rates start at 6.99 interest only with low fees. 

Private money. Short term interest only payments. This is called a commercial loan since it's non owner occupied. Best rates are available with a credit score of 700. Loans don't require any experience and funding shouldn't take more than a few days.

The loans are considered commercial which translates to non owner occupied investment property, this could be a SFR rental. The underwriting is usually less complex and closing can happen sometimes in a week.

Get a line of credit together with the lender.

Conventional investment propties are limited to four buildings. Look for a commercial building. If building has renters currently you can use the potential income instead of your own. A line of credit should be establish first with the lender to help the underwriting process close within a week. Rates are based on experience and FICO, if your credit isnt 700 or more, bring in a partner, the highest FICO is used.

Most private lenders limit to four rentals per building for commerical, but usually can make an exception if a borrower has a proven track record of rental properties. Depending on state you should be able to receive a thirty year interest only loan starting at 6.49% and 1 1/4 pts. If your liquidty and net worth can support a line of credit of $400k you shouldn't have trouble locating a loan. How many other rentals do you own?

A line of credit is important, when you find your investment property the loan can close as soon as appraisal is completed. The purchase can also be financed if you need to urgently purchase a property with cash at auction. Focus on a scope of work for a general project, this will be required for underwriting. Don't be afraid of a slightly higher rate, if planned correctly the difference should only be a small margin of your potential profit. I work with first time investors often, if you have any specific concerns.

I have seen Rates start at 6.99%, but require multiple flips to secure best rates. Either way if someone is charging more than two pts you may want to do more research. Have you tried looking for a partner with at least five flips in last two years?