All Forum Posts by: Jason Wray

Gene,

Best two ways to make money and buy multiple REI's quicker is either "All Cash" purchase of a property and immediately do a "Delayed Financing" loan. When you buy "All Cash" you can take out up to 80% LTV cash out same month - No title seasoning No 6 month wait. You get access to 80% of your cash back to move to the next purchase.

The other option is use a small portion of funds 15% to purchase any SFR or 2-4 units through an investment purchase typically Bank portfolio. Bank portfolio program just means the bank hold the paper/mortgage and services the loan so they offer lower down payment options. There is also "No Prepayment Penalties" so you can refinance in as little as 6 months.

The All cash purchase allows you to get a better deal since the seller knows you can close quick and usually "No contingencies/No appraisal". This allows you to focus on TLC/Rehab deals where you can renovate and profit on the ARV to again pull cash out and repat the REI purchase process. Both steps help maximize the number of doors over a shorter period of time increasing your passive income and overall ROI.

Josh,

If the (2) homes are on the same parcel you can use a DSCR loan program.

Anthony,

You cannot roll a Vacation Home into an LLC using a traditional loan. What you can do is purchase it under a Bank Portfolio program or DSCR and refinance it on the 11th month. During that refinance you can transition it into an investment and Vested in an LLC either through closing or a Quit Claim Deed after you close at the County.

It's kind of a Bank/Lender Loophole because you take advantage of the 10% down Second Home/Vacation home down payment. The right before the 12 month mark start your application on the 11th month to fund on the 12 month mark with an investment transition rate and term. If there is enough equity at the 6 month mark you could do it then but there may not be much of a tangible benefit unless there is a PITI savings.

If you are able to do some renovation in the first (6) months it might be possible to do it on the 6th month mark based on a higher renovation ARV.

If you have any specific questions feel free to message me or reach out I am always happy to help and talk REI.

California has some options but you should check out the Oregoan Coast.  Reach out to

@AJ Wongundefined

Havan,

I have never heard of that are you sure it was not Fannie Mae 5% down for a 2-4 Unit multifamily?  That program is set up for primary homes but only 5% down and you can rent out the other units.

A bridge loan means you have a home currently listed for sale on MLS and while you wait for it to sell another bank offers you the cash based on your mortgage payoff and profit. So unless you have home you want to sell or use for the equity you cannot do a bridge loan. You cannot do a bridge loan on the actual property you want to buy because that would be a refinance.

On a renovation loan you still need to have a down payment to cover the LTV/LTC gap since most banks only allow a 80% LTC on a investment SFR.

What you can do is take out a HELOC on your investment rental so that you do not touch the 2.875%. Those sit in 2nd lien position like a 2nd mortgage or again a personal loan for the 15% down payment (no lien or property required).

If you want to talk about this in detail I can offer some clarity just reach out or message me I am always happy to help.

Alfredo,

If you do not want to do a cash out refinance (Which I would advise) I would tell you to reach out to Quorum specialty lending. All loans are subject to credit, loan amount, state, property type, number or units, and DTI. So I cannot offer any rate/term or LTV options for them so you would have to reach out.

You do have both traditional and DSCR cash out refinance options as well just to keep in mind. Most investors think because of a low first rate a Heloc is a good idea but it can cause problems down the road and even denials on future purchases. Unless you are taking out a small amount of cash then Heloc might be a good fit.

One options you have is organize a large group of investors to offer "Fractional Rights" off as a pre-sale partner offer. Condotels are popular where I am here in Florida and offering fractional rights on pre-sale is great way to get some initial capital locked in up front.

You will need to draft up some legals and use an attorney for that but it might be worth your time/money. Units can still be sold but fractional's offer another way to create cash flow and STR wealth.

There are more than just a few ways to organize that type of arrangement but you may also be familiar.

Errand,

That website is not always a good indicator of current market value.  If the homes listed on that website or other sites do not have current or correct data it will not estimate correctly.  Sometimes homes do not have the correct number of Bed's or Bath count or square footage so the calculation will not be correct.

If you use the search tool to filter and look in that zipcode for "Identical" sold homes in the last (6 months) compare all of the most recent sales and proximity of up to 2 miles to gauge the value.  Problem is recent sales will cause -/+ estimates when you have "All cash" sales, Fire sales, High DOM recent price drops, etc. 

Shaydon,

DSCR only requires 15% down for a SFR purchase but there is no way to use the equity in a purchase scenario. The equity can only be used in a refinance situation and you are not on title so you cannot refinance the home. You still have a few options in terms of acquiring the home.

If you own a primary home you could do a cash out refinance pay off or down all of your debts. If there is enough cash/equity it might cover the 15% down payment and debt payoffs. If you can refinance and just pay off debts you can take out a personal loan after the refinance up to $50K. That could be used to put down the 15% down on the new purchase using DSCR.

You could also do a "subject to" contract if you want more info I would look up "Pace Morby's" info or videos on Ytube. You might be able to find a happy middle ground with your neighbor until you can find the 15% to buy the home.