All Forum Posts by: Jeff Dulla

@Robert Sexton Yes. This can be a problem. Your property is considered to be legal “non-conforming”. The loan is doable, even with financing from Fannie/Freddie, as long as the appraiser is willing to state the following in the appraisal:

1. This is typical in the area (other multi-units that have been revised to single family zoning).

2. The fact the property is legal/non-conforming does not negatively impact marketability (value/ability to sell)

Hopefully that makes sense.

@Michaela G. Knew it was a name you would know. In what I said above, I never compared myself to him, simply said we receive no compensation for trying to consult people on here. Best of luck to you though! 

@Michaela G. I hope your response about lenders reaching out to you was not in response to me. If not, allow me to give you a little more info. 

First and foremost, you are looking for information on this site. Most people on here that are lenders are not only lenders, they are also fellow investors. I being one of those people. So when you are asking a community like this, I am responding with both personal and professional knowledge of the business. 

Secondly, you state you don't know anyone and there are too many scams. While I agree about the scams, we are talking about he exchanging of information. Which many of the lenders on here, like Chris Mason or myself, are giving away for zero compensation. We are not paid to give advice on here. We are 100% commission. The amount of potential deals that come from this forum are the smallest percentage and if you looked at it based simply on compensation, probably not worth the time. So my advice would be to find lenders you see giving solid advice and start treating the information they are giving you with a little higher regard. The reality is you "dont know" anyone on this site yet you would be willing to take the advice of an "investor", regardless of their experience, that you know nothing about, over an experienced lender? That doesn't make a lot of sense in my opinion. 

Lastly, one more bit of information on advice from legitimate lenders on here. The investment loan sizes you are talking about are not very profitable at all from a lending perspective. It is not worth it for any legit, busy lender on this site to go out of there way to try to sell you or get you to reach out in order to get your business. It is always great to increase your network and give the best advice possible, because you never know who will be a great referral source, but lenders aren't going to be tripping all over themselves or aggressively pushing you for an $80,000 investment loan, generally speaking. 

Just wanted to add my two cents. Take it or leave it. Good luck with your future endeavors. 

@Michaela G. I am not sure you need a "portfolio" lender unless you are certain that comparison valuation is not going to work for your properties. It just sounds like you have been dealing with sub par lenders. 

I am not sure what the best way is to find more qualified lenders, who don't want to waste your time or theirs. I am licensed in GA if you do want to talk. I don't want to do a loan app or anything like that - I would first want to clearly understand what your current situation is, how the loan to values look currently, what current values in the area are and what your expectations are. 

If you want to reach out, feel free to PM me. No worries either way. Happy Holidays. 

@Tim Youse Honestly - small loans are hard to make money off. So those charges don't look bad at all (and some of them are prepaid items or municipality fees which you are stuck with no matter what). I think it is a very competitive offer. 

@Justin D. it is impossible to simply give you a blanket statement or point you to one place. To generalize, 203k and homestyle are what you would need if you think there is serious work needed on the house to close. 

Fannie/Freddie and FHA, the typical loans, are going to stop you on a home that has any safety or structural issues. They are also going to stop you of there are integral parts of the home missing that would impact resale value and ability. You can't paint that with a broad stroke - hence why they require a full appraisal to be done on each loan. That process is meant to dig in deep on issues that could detrimentally affect the piece of collateral.

If there is nothing totally obvious - bad roof, bad foundation, mold, missing cabinets, etc, you should be able to do normal Fannie/Freddie/fha financing. If any of those things are a major issue, you need 203k, homestyle or Reno loan most likely.

@Derek Hutson I agree with Irina. The plan to put $5 on your card and let it roll won’t do much (and letting it roll and pay interest each month is stupid). You need to establish more credit. Installment loans always look best but if you don’t have a need for a car/car loan or don’t have student loans, no need to seek that out.

Since you have so much time, open up some new cards, use them like Irina said and pay them off each month. The bureaus don’t want to just see you have cards with no balance and high limits - they want to see you managing debt effectively and responsibly. That is going to bring you to higher credit scores.

@Zach Falbo If you plan to invest more, I would save your cash and not take the points. Have you ran a simple interest comparison with the different rates - points versus no points? How much does it save you compared to what you are spending. Also take time value of money into consideration. 

Secondly, I will straight up tell you I am a lender. Regardless, you can find much better than Quicken. Better on rate by a good amount. Better on service and consultation as well. A good LO should be able to troubleshoot this question for you.

Feel free to PM me if you would like but no worries either way. 

@Greg Betts Expect it will be a grind for those first couple years. I mean really tough - a lot "no's", a lot of dead end relationships with realtors, realtors and other professionals taking your money to sponsor events with little in return, etc. 

Also expect that the business has to be one of the most heavily regulated in the US now. Meaning heavy compliance. Most people have no idea what goes on behind the scenes and once you see the amount of things that happen for each loan, your head is probably going to spin.

With all that said, it is a great industry. Very few jobs like it. I do genuinely love what I do. I think the key would be to find a company that is established, has a great/nurturing culture, and a solid on boarding process. I think without that, you may feel very lost/frustrated through the next couple of years. 

@Will Guy Generalizing a bit and trying to put this very plainly, if you are seeking a conforming, residential mortgage for this transaction, it is probably not going to happen with you closing it in LLC. These loans are meant to be done under your name, with you guaranteeing the loan for a reason. The introduction of an LLC as owner changes that dynamic. That I know of, I don't believe you are going to find a residential mortgage for this transaction unless you close it in your name and quit claim after.

When closing in LLC - you are essentially telling the bank that this loan is for a business and you are operating as a business. The options that are being offered to you under the LLC closing scenario are business/commercial loan options. Short term balloons which need to be re-analyzed and re-done often to make sure your business is performing.