All Forum Posts by: Greg Downey

@Matt Berklacy, you can pre qualify. Remember there is typically a 6 month seasoning period (I know of one conventional type that will do 90 days).

When looking at lendability, income and credit is great. From what I have seen from a ton of applicants is that if there is a lack of just one of those, then simple explanations will suffice. This is where net worth comes into play. Lenders will give more credence to net worth (and overall financial picture) when there is a lack of standard W-2 income.

If there is a lack of both credit and income/capital, then you probably need a "sugar daddy" on the team to get more conventional type financing (30YF)

Let me know if you need any more help navigating the lending waters

"get rich education" podcast really outlines why leverage is so powerful. I highly recommend a listen to help come to your own conclusion about leverage. 

Would love to help out if needed.

Welcome to the great game of real estate

@Account Closed. Lenders are looking a total cashflow of the borrower. A high net worth may come in handy if DTI was a bit higher as you would have some a lot of assets to garuntee the loan.

@Robert Spencer here Ian why lenders don't love dealing with lower priced homes; they are payed based on the value of the loan. What would you do; loan 10 $50k loans or 1 $500k loan? I don't say that to be mean, (my current rentals are in the $60k range. You just have to understand the perspective of the lender as well. 

What I have seen is that any loan under $50k you will pay a bit higher interest rate or be offered to pay points to buy it down.

@Robert Spencer here Ian why lenders don't love dealing with lower priced homes; they are payed based on the value of the loan. What would you do; loan 10 $50k loans or 1 $500k loan? I don't say that to be mean, (my current rentals are in the $60k range. You just have to understand the perspective of the lender as well. 

What I have seen is that any loan under $50k you will pay a bit higher interest rate or be offered to pay points to buy it down.

@Joshua D Black, I also came from the Dave Ramsey school. I would like to mention that I feel as though an investor should plan on graduating to "higher education". I recommend listening to the podcast "get rich education" @keith weinhold does an incredible job of concisely explaining why investors use debt/financing. I prefer to think of debt as "leverage" once you understand that, you are in a new league.

I agree with @Bryan C.. You should be able to qualify for a reasonable amount based on your income. The real change will be in the rate of your loan based on you credit, or lack there of. I have used my VA Lon twice and the process is easy.

One recommendation that I might suggest would be to ask to be a secondary (not the right term) on a credit card of someone else who has great credit (parents?) spend basic expenses on the card, pay it off monthly, never go above 30% of the credit limit. This should give you a quick boost to your credit, especially if you are a blank slate. 

Stay safe

dollar cost averaging. Buy good deals at all times. Sometimes (like now) the deals aren't that fat. Sometimes they will almost all be fat (2009-2011). @David Song said it right. Inflation will eat more of your money than a good but not "himerun" of a deal

Welcome to the REI adventure!

@Ryan Aylward, if you are not dead set on the lender being local to your area, I can put you in front of some very credible commercial lenders.  drop me a PM and I can put you in touch.