All Forum Posts by: Francis Jonas Helstab

This. If it is already paid off you will get a much better (and fixed) rate going with a conventional cash out over a HELOC/HELOAN.

Quick question, have you looked into just doing a cash out refinance on your primary that is free and clear? You should be able to find a better rate than what a HELOC is going to offer and it won't be a variable rate. Let me know if you have any questions, but that may be a better avenue for you at this point.

Hi Scott,

I have a friend that is a real estate agent that has several investment properties that he puts in individual LLC's. I could set up an introduction for you if your interested. He's a great resource. Let me know if that is something you would be open to. I hope you have a great day and happy hunting!

Hi Joseph,

Yes, pretty much all DSCR require some sort of money down. However, how much depends on the lender and I've seen some as low as 15% down but most will want between 20-30%. There are also pre-payment penalties on most, but not all the DSCR programs out there. It's definitely a product that needs to be carefully navigated to see which option is best for you. If you plan on doing multiple flips in the same 12 month period there are programs for that as well where it's basically a line of credit with one large chunk that you can draw from and do multiple properties without going back through underwriting each time. I hope this helps and happy hunting!

Hi Luke, I have to agree with Andrew, but let me add this one thought; have you spoken with your lender about the possibility of an appraisal waiver? It's possible, using certain metrics, to bypass the appraisal altogether. There are also certain lenders that are starting to create their own appraiser networks (mostly to alleviate what you're dealing with right now). This is definitely a common problem that many people are running into right now. We just had an appraisal process in Rio Rico, Arizona that took six weeks and cost close to $1600.00. Without the appraisal waiver, you are pretty much at their mercy, but I think you would be surprised how often a home qualifies for the aforementioned appraisal waiver. That's how we have been overcoming the problem. We also constantly have our eyes out for lender programs that either alleviate or eliminate the appraisal process. Hope this helps.