All Forum Posts by: Jason Hirko

First figure out what you can do for the person you want to partner with. Like @Rick Pozos said, bring them a smoking deal is a great way. 

As others have said, at that rate a DSCR loan would be at lower rates or points. However, even if they were equally priced, there are benefits to going the DSCR route whenever you can. Ask your lender if their DSCR loans are reported to the credit bureaus. A lot of them don't report, which will help keep your DTI low

This is kind of like asking for the best way to cook dinner. I could give you the recipe that I use, but it may not suit your taste. I would tell you that the right way to do this is to figure out what you are offering at a high level (preferred return, repayment of principal, distributions, equity split, etc) then find a RE attorney that can draft the appropriate docs. Once you're happy with that set of docs, the attorney (or you) should be able to modify it easily for subsequent deals. 

Unfortunately I only do residential but thanks for the offer!

Just for your reference, at a 7.25% interest rate and 20 year am, your monthly payment would be $2,608. On a 30 year am, a $2,608 monthly payment would be at an 8.8% interest rate. Hope that helps

@Ryan Cain What interest rate is your CU offering? DSCR rates for 5+ unit MF are likely going to negate the monthly savings of going from a 20 to 30 year am. Happy to run some scenarios for you if you want

@Gerardo Lewis You need a better lender. Even in today's market, unless you're looking at $500k+ houses, you should have plenty of equity and a lender won't need collateral beyond that. 

@Christina Tsutsui-Tharp Congrats. I love how you found a great little niche that fit perfectly with your and your husband's specific knowledge!

@Anne Grello I want to buy 2-4 deals a year. I try to make an offer once a week. Just get used to hearing 'no.'

@Matthew Allen I'm going make a few assumptions based on what you said - you have a condo you bought with debt over a year ago. You also live there currently. I am going to assume you have a pretty spectacular interest rate on that property compared to today's rates, maybe even sub 3%. With that said, if you are 'losing' $300/mo right now, your DSCR is maybe in the 0.9 range. While not great, you have to look further out. You are right about 2-3% appreciation helping to justify this, but I would strongly encourage you to look at the time value of money on this. You have a monthly mortgage payment that is locked in at likely 2021 dollars. That amount won't change for the next 30 years. So even as inflation creeps (or jumps) up, your payment stays the same. That same inflation will eventually cause your rents to increase as well, but again, not your payment. You've already seen a huge increase in inflation since you got this loan, which hasn't trickled down yet to increases in rents, but it will soon. And over the next 30 years, forget it. You will be much better off keeping that loan as a hedge against inflation. In a few years, your DSCR will be above 1.0, and you'll have a cashflowing rental as your tenants pay you in 2025 dollars, while you still pay the bank in 2021 dollars.

 Those are both great (probably the best) ways you can offer something in exchange for mentorship, but what is your day job? Is there something there that you can offer someone who is currently busy being successful? Maybe you're a CPA who can help him save some money on his taxes or a flooring installer who can do work for material costs only.