All Forum Posts by: Guifre Mora

Hello. So I was looking at one of the mobile home parks in and realtor told me it has to be hard money loan or cash since it’s private property. I’m little confused. I can’t buy private property with a loan? If not then why so? Isn’t your home that you are selling is private property and people that buy it use loan? That mobile home is not full mobile home park it’s just they selling certain amount of units. Can someone explain please? 

@Guifre Mora

If that is the case, wouldn’t I be better off just going traditional financing on the deal, if I can qualify? 10 days isn’t magical - we have set a tentative close date early June. Based on your reply, it would seem easier/cheaper to go traditional financing and close with my investor friendly lender in 14-21 days.

The further question here is would a HM lender be willing to lend 100% on this or not. I’m trying to figure out if I have to actually come up with cash for the purchase and forgo other deals or secure financing to obtain the property and then refinance out, using a minimal amount of my own capital.

Thanks for the reply!

So I spoke with my lender today and they informed me I had used a majority of my equity from my properties. However, I just renovated two properties in order to have them refinanced to gain more equity for more purchases. When I advised my lender of the work I had done, I was told it won’t really matter. The original appraisal (before rehab) would not change much because the house was purchased at a cheaper price lowering the property’s value? Which I didn’t really understand because I could sell the properties for a significantly higher price than what they are appraised at.

My lender told me to consider a construction loan for future purchases. But when explained, that type of loan sounded better for larger rehabs. But I only buy small single family homes. Is there a better option?

Thanks

I am running into a financing issue that I can't find the answer to anywhere I search. I am looking at financing options for the next property and what I wanted to do is setup an LLC, have investors (friends and family) put money into the LLC and then I would use that money as the downpayment. I would pay the investors back with a fixed rate loan and I would retain 100% ownership of the LLC. HOWEVER, I just found out that this is most likely illegal especially if the investors are non-accredited. Damn! Now I am wondering if the investors could be managers in the LLC, have 0% equity and loan the LLC money?

Looking to understand if Hard Money would be a good fit for the following situation. Have a seller that wants to sell quickly. We worked out a price of $215k on a property that is likely worth $270k based on comps. Minimal work is required on the property.

I figure I would get a HML for the purchase price to save me from having to use my cash and then refinance out after a few months once I stabilize the property with a tenant. Math works out to the purchase price being roughly 80% of potential appraisal value.

1. Does that seem like something a lender would take on?

2. Can someone recommend a lender who would consider that?

I am doing 2 conventional deals right now, so having the HML would be enticing to conserve for other deals I am considering.

Much appreciated in advance!

Hello everyone. I hope everyone who's reading this is all well. I have some concerns to share with you guys.

I've posted a similar question before, but still haven't found the answer yet, so here I am writing this again.

I am a first time BRRRR investor living in NYC.

I purchased a single family rental in South Jersey, and its rehab is almost finished.

I have a question in regards to cash out refi. In typical fashion of BRRRR, I tried to get the property refinanced at 75% ARV. The problem is, ARV is about 82k-90k(purchase price was 45k, all in cash. This ARV is based on RE agent's opinion and comps), which not many lender would do cash out refi for. I realized the bare minimum that they think is worth for work is about 100k. But I managed to find the local mortgage lender who was going to do it at pricey cost and interest. I was going to go for it anyway, to stick to BRRRR strategy. Without refinance, what's the point, right? But the mortgage lender closed the program recently due to Coronavirus. Now, I feel like I am stuck. But I am not panicking or anything, but just trying to look for other creative way to get through this. Would you sell it if you were in my shoe? How can I keep going? I really want to do buy and hold rather than flipping or anything. What I hope to do is to learn how to repeat investing with the initial capital. I'd greatly appreciate all of knowledgeable advices and information. Stay safe everyone.

if anyone knows NJ lender who does cash out for under 100k, with just one month ownership, Please let me know!

Hoyoon

 Awesome find brokers who are willing to talk and give you some pionters and guide you it sin their interest to educate the borrower and see the deal through. Feel happy to reach out with more questions or PM if you feel more confortable throging more questions the more Q's the better for your development. 

Hello Biggerpockets,

Forgive me if the question I'm about to present was similar to a previous post. I'm shopping around for financial backing for my next investment property. I currently have a rental and my primary with a HELOC to help fund my next project. I reached out so far to HMLs and local banks for additional financing. Only to be told I need to have a property in mind, which brings me to my question—going this direction, how does one accomplish finding a property, getting a GC quote or an inspection for rehab numbers, and applying for a loan in time to submit an offer? My initial strategy was BRRRR, but with potentially having to go through the seasoned period unless I have cash, I decided to do a few flips first to generate some cash. Any suggestions or shared experiences would be greatly appreciated.

Thanks!

Hi All:

Any recommendation on lenders in VA, MD, DC allowing rental property purchases once you've maxed out the conventional 10 funded properties limit. Looking to grow the rental portfolio. Are there any local banks who may entertain this under LLC or even person name?

Thanks!