All Forum Posts by: Celia Lumbroso

 Hi Mark, 

To add on, this is most likely a scam. 

Even if they were serious, what they will do is provide a LOI (letter of intent) at 100% financing on Day 1 of the loan process and they when you get close to the funding date, usually 3 business days before, they will switch terms/pricing to more realistic terms around 75-80% but still charge the elevated fees as if you were getting 100% financing. LOI's are non-binding and lenders can construct whatever terms they so choose.

This tactic is called the bait & switch.  

Looking forward to connecting with experienced investors, real estate agents, and individuals new to real estate prior to the Bigger Pockets Conference.  

We will be discussing F2 Finance's loan product in-depth and how we can help you on your next fix & flip, short term rental, or mid-construction project. 

F2 Finance is a direct bridge lender providing short term financing to help investors unlock the capital they need to succeed. 

Hi @Jorge Caceres, I would have a friendly discussion with him in September after he submits his monthly rent.  This way the tenant feels more comfortable explaining his current financial hardship and will likely provide more information vs you demanding an answer now. 

If the tenant has hardship, try and work a payment plan with him short term 1-2 months and go from there.  The tenant seems like a respectful tenant, wouldn't want to replace him with a destructive tenant.  

Like others have stated, find out his game-plan and go from there. If the tenant knows he will have an issue paying rent even with 1-2 months of help then move on to the next tenant. 

@Peter Brown

Hi Peter- given this specific scenario I think in the long run it will cause issues if you're planning to sell both houses to primary home owners. 

If the houses are to be used for short term rentals (6 months or less) or as a  Air BNB rental then I think you could manage a work-around.  Depends what type of client you're trying to target. 

@Manley Woods

Agreed with Sloane. 

The cross-collateralization with two properties in different states is kind of a deal killer with lenders. This opens the lender up to take on too much risk especially when states have different foreclosure processes. 

If you want to do a cross-collateralized deal, I would target a property in Missouri where they can take your already existing rental as collateral. 

@Dave Elim

Hi Dave.  An important factor to consider is your timeframe. Do you need access to capital as soon as possible or do you have time on your side. The lender asking for 25% down is not abnormal given the current market.  

If you were a seasoned and a repeat client with 10+ previous projects- you would be getting a better rate, maybe 20% or 15% down instead. 

Matthew made a good comment about the pro's and con's between the bank and Non-QM loans. If you have time then shop around with the banks. 

Hi @Darnell Robinson I think a critical issue is your target market. Detroit would be a difficult market to utilize a DSCR loan in due to the low amount of monthly rental income coming in. You will likely encounter this issue with multiple lenders in the area. Alternatively, you could pursue a hard money loan for rental financing which wouldn't require certain rental income to qualify.

@Adam K. Hi Adam this is an interesting scenario given your outstanding balance on your HELOC. If you are planning to move back to CA in the future (given like 5 or 6 years) then I would keep the CA house and rent out for the next few years until it keeps appreciating. Refi in two years when interest rates come down. If you are not planning to move back to CA, then I would sell and get out. Take the money from the sale and spread the money towards multiple projects if possible where real estate is relatively still cheap for fix & flips. Florida, Texas, or Georgia would be ideal markets to target. Happy to discuss in further detail if you have availability. Thank you.

Hi Wesley @Osamawen Iyahen, nice to meet you. 

Welcome to the BiggerPockets community, you're at the right place for being a first time investor. A few topics to consider for first time investors: 

-What is my long term goal? Do I want to focus on house-hacking, commercial, or residential? 

-What are my liquidity constraints? 

-Can I afford monthly payments for a mortgage, insurance/appraisal costs, and any unexpected costs? 

-What specific area do I want to target? 

 More than happy to schedule a call with you to discuss more in-depth. Goodluck on your journey. 

Will be there- thank you!