All Forum Posts by: Jeff Dulla

@Andrew Barlow You should be able to acquire ten properties a piece. Qualifying changes a bit after six properties. Also if you are on title for each property (but not on the loan), you need to qualify with added taxes and insurance (but you aren't hit for the mortgage in terms of max amount of loans). Here is Fannie on the subject:

@Courtney Pack Sounds fantastic Courtney. If you want me to help you run any numbers specific to financing the property, just PM me. A solid portion of my clients are investors and I myself invest in MFH. 

It is actually most beneficial if you have some examples of properties you have already scouted online. 

Good luck with everything! 

@Andrew Barlow yes - you are on the right track now. Spot on with everything you said above.

@Sergio Deleon - Definitely non-warrantable. I have seen very few variances or exceptions made by Fannie/Freddie. There are plenty of lenders out there that can do this. I can give you an idea of rates if you would like but need a few more details. Just PM me if you want to review some pricing. Good luck!

@Phillip Vaughan I believe you are referring to delayed financing. In which you can refinance pretty immediately after purchasing a property for cash. In that situation, you can refinance up to the amount you paid cash for. But you cannot exceed LTV limits for different property types (85% for single fam investment).

For example - if you bought a home for $100,000 and it's a single family. Now it is worth $125,000. You can refinance before six months, get a loan for up to $100,000, and no further seasoning is needed.

Does that make sense?

@Aaron Paterson

If you are going for buy and hold, here are some quick thoughts on your questions:

1. I don't have much to add on the broad sense of locations. I prefer to hone in on locations I know for sure. Unless you really have someone trusted to work with in each location, I don't know how you can truly know a vast array of areas unless it is your full time job. If you like Colorado and have had success, stick to investing there.

2. If you are going to hold the property long term, I am not sure how you can beat a conventional 30 Year Mortgage. If the property works on that platform, I would shoot for that all day. A lot of people talk about different programs on here but it is usually because they cannot get past an obstacle to conventional lending (don't have enough down payment, property is in disrepair, do not have income to qualify, etc). If you have all those bases covered, conventional all the way as it will protect you in the long haul against fluctuations in the market. 

3. If the townhome is working and you have other capital to work with, why do the 1031 exchange? I wouldn't unless you have an agent you really trust in Colorado and you can trade up for a multi-unit. I would think most people in BP that have a portfolio would tell you they have more than a few just solid/OK rental properties in the mix. Not every one is going to be a complete home run. But solid/consistent has a value. 

4. I don't think you can ever use a blanket rule like that. Every market differs. In the city of Chicago, for instance, there is no way most rental properties meet that 2% rule. Especially for multi-units, I am  sure it is more like 1% would be more typical to come by. The more solid and established the location and values, I would think the lower the typical percentage would be. Once you start getting into some more transitional areas, your ideal 2% may be attainable. 

Hopefully this helps. PM me if you have any detailed financing questions you need help with. Good luck!

@Account Closed absolutely. You have a self sufficiency test you need to do but you definitely can.

One of my coworkers is from TN and does a lot down there. PM me if you want his info. At the very least he can give you all the info you seek without commitment.

@Richard Moore @Daniel O. - I couldn't disagree more. If you do just the slightest bit of reading on BP or just review sites, you will quickly see that the retail bank direct route is one of the worst routes you can go. Same with just blindly picking some call center brokerage from bankrate. If you want the exact type of mortgage broker you just explained above, by all means call the retail banks or pick loan depot or aim loans or seabonic financial, etc from bank rate. 

I would talk to someone that has been referred and you thoroughly vetted. Or some of the professionals on here that have clearly exercised an understanding of the business through their posts. 

@Richard C. Depending on how close they want to be, how much they want to spend and their requirements for the neighborhood, I think most are probably looking at South Loop, U Village, Tri-Taylor, maybe Pilsen. Cannot speak on the schools down there but most of my clients that live down in that area do private school. It really just depends on their requirements. 

@Cheryl W. The underwriting and processing fee seem high together, normally there is probably one fee for processing/underwriting ranging from $700 to $1,500 or so. So they are on the high end but that make sense if they are claiming that pricing is at par and they are only charging 1%. Obviously loan originators range in their ability and expertise but the good loan originators and especially, the good companies, didn't grow by making 1% on loans. You could barely employ a knowledgeable, reliable staff making 1% on deals. 

The internet has changed things quite a bit with the accessibility of information. I don't see many companies charging crazy fees for appraisals, credit, title, etc. So my guess is there is no margin or anything being added in. 

Long story short, those costs look high but not when you take into account that they are supposedly only making 1% on the loan.