All Forum Posts by: Jerry Padilla

@Jonathan Kramer

You can go the route of conventional...... You need an investor friendly lender that will go to that low of a mortgage amount. It can be tough in your price range, but it is possible. 

@Account Closed

I would recommend getting your credit score up, first. You will get better rates and a better chance of financing. Sometimes, it just involves moving debt, but typically, you do need to pay down some debt and it can make a big difference. We have a free credit tool that tells you exactly how much to pay down and what to pay it down to, to get you the best results and highest scores... I see you are a loan officer so manybe you have access to this as well?. There is also creditkarma.com - which is a free site that you can use to help you determine as well. It isn't always the most accurate site, but it is free to join, and has many other great features as well. 

Making BiggerPockets Work For You!

1. Profile Pic, please! No one is going to take you serious as an agent without a professional profile pic!

2. Fill out every section of your profile. The more information and details, the better! Here is the place to boast about your experience, what you can do for your clients, the background knowledge you have. If you are a new agent, Do you have experience as an investor? This counts too! If you are a new agent or experienced agent, what can you bring to the table? Investors don't want to see marketing, they want to see knowledge and expertise!

3. Under Experience Section: List that you are a Real Estate Agent!!!! No one will know you are an agent unless it is listed under this section.

4. Next, Set Up the Pro Account. Yes, it is $29 a month. But face it, it is probably the cheapest marketing you will ever spend! There are too many capabilities for me to list here, with a pro account. Even just one lead a year, will pay for your membership here. This site is a goldmine and you have to take advantage of the potential here! With a pro account, you can write 2 different marketplace ads a day!, providing knowledge to clients on investing locally.

5. You get out of BiggerPockets, what you put into it! The more time you spend posting responses and assisting others. The more leads that will come your way. Set your signature up to attract investors, if they are interested in buying or selling and see your posts they will contact you. If you are a Pro or a Plus member than you can also advertise in the marketplace.

http://www.biggerpockets.com/pro

• You can request colleagues with investors you intersect with and get to know.
• Search for local investors, and see who viewed your page!
• Set up additional keyword alerts! Know who is posting in your area, and provide them with your knowledge and expertise.

NOW THAT YOU ARE ALL SET UP, TIME TO START CONNECTING, AND POSTING!!!

1. - You can do searches on the site for local members and local forums.
2. - Jump in on conversations that have to do with your local market.
3. - Be your LOCAL EXPERT! AND THE LEADS WILL COME!
4. - Post information about your local area for locals and out of state investors to be educated on.

NOW THAT YOU ARE POSTING AND REPLYING AND STARTING TO LOOK LIKE THE EXPERT IN YOUR AREA.........

• Either attend a local meet up that is in your area (Meetup.com) lists many of them. If there are no local meetups in your area -create one. BiggerPockets also has many investors creating local meetups. If there is one already started, attend your local meet up group. If there are no local meet ups, then create a local meet up. If you are not sure what to make the meet up about - networking and or education is great.
• Take advantage of the marketplace. You can post an advertisement once every five days for the same ad, and 2 different ads a day!! List on here that you are an experienced investor and real estate agent in your area. Provide knowledge on your local market, don't just try to sell yourself. There are so many local investors that are searching for mentors and experts in your area! They are looking for you - the agent! - and need to be able to find you when searching. If they have a keyword search set up that includes the marketplace, they will immediately see that you are one of the local experts that they need to connect with. It is going to take time to build relationships on here. Just as it takes time to build your business in the real world, it takes time to build your business on BiggerPockets.
• Ask for references! Any investors that you have worked with here on BiggerPockets or investors that are not on BiggerPockets. What investor do you know that couldn't benefit from becoming a member on BiggerPockets? This is a valuable tool that you can offer to your clients in the past. In return for the knowledge of this valuable website, I am sure they will want to give you a reference!

PLEASE FEEL FREE TO CONTACT ME FOR MY IDEAS, ASSISTANCE, OR SUGGESTIONS! 

AND.................

IF YOU ARE LOOKING FOR AN INVESTOR FRIENDLY LOAN OFFICER TO WORK WITH, HERE IS SOME INFO, ON THE COMPANY I WORK FOR: 

Start The Mortgage Process With Jerry Padilla

At MB Financial we are a small local bank on a National level. We as a Lender offer conventional financing, with very little overlays, and go above and beyond for our clients. We have some of the lowest fees and rates in the industry. I personally am an investor myself and can relate to your financing needs.

• A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)
• Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by either Fannie Mae, or Freddie Mac
• Conventional or Refinance
• Cash Out Financing on the first six investment property's and a credit score as low as 620.
• Delayed financing with up to ten mortgages
• Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
• National lender!
• Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation
• Low rates & Low closing costs
• Jumbo Loans, to Sub $100k loans to Sub $50k loans to Sub $30k loans
• I personally am available extended hours
• Opportunity to increase your business to have more capital available for purchasing and rehabbing
• Automated approval system

Our current bank fee's (subject to change)

$995 admin fee

$6 flood cert

$45 credit pull

All other fees are standard and determined by our automated system

Sub $50k loans - there may be an origination charge or points possibly and is determined by the system when the loan is locked.

Rates fluctuate daily and are determined by credit score, and other factors.

STATES WE LEND IN:
Alabama,
Arkansas,
Arizona,
California,
Colorado,
Connecticut,
Delaware,
District of Columbia,
Florida,
Georgia,
Hawaii,
Idaho,
Illinois,
Indiana,
Kansas,
Kentucky,
Louisiana,
Maine,
Maryland,
Massachusetts,
Michigan,
Minnesota,
Missouri,
Nebraska,
Nevada,
New Hampshire,
New Jersey,
New Mexico,
New York,
North Carolina,
North Dakota,
Ohio,
Oklahoma,
Oregon,
Pennsylvania,
Rhode Island,
South Dakota,

South Carolina,
Tennessee,
Texas,
Utah,
Vermont,
Virginia,
Washington,
Wisconsin

@Ethan Feller

It is a great that you have a good chunk of money to get started! Personally, I wouldn't jump in full time yet. Jumping in full time, with no experience, is going to be really tough. Taking on self - employment is going to make it hard to qualify for financing ( or at least conventional) with no history. I would recommend building this business up, and eventually retiring from it when you have the experience and equity built up that you are comfortable with. Some may argue this point.......

You can purchase distressed properties, and cash out refinance them to possibly get your initial investment back at the 6 month mark (based on current assessed value), and keep using this cash to purchase more properties. If you initially purchase with cash, than you can cash out prior to 6 months, but are subjected to your intial purchase price and closing costs. Attending a local meet-up is a great way to get started and make connections. 

@Chris Mason can probably refer you to a great one.

Start The Mortgage Process With Jerry Padilla

At MB Financial we are a small local bank on a National level. We as a Lender offer conventional financing, with very little overlays, and go above and beyond for our clients. We have some of the lowest fees and rates in the industry. I personally am an investor myself and can relate to your financing needs.

• A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)
• Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by either Fannie Mae, or Freddie Mac
• Conventional or Refinance
• Cash Out Financing on the first six investment property's and a credit score as low as 620.
• Delayed financing with up to ten mortgages
• Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
• National lender!
• Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation
• Low rates & Low closing costs
• Jumbo Loans, to Sub $100k loans to Sub $50k loans to Sub $30k loans
• I personally am available extended hours
• Opportunity to increase your business to have more capital available for purchasing and rehabbing
• Lender credit available for purchases
• Automated approval system

Our current bank fee's (subject to change)

$995 admin fee

$6 flood cert

$45 credit pull

All other fees are standard and determined by our automated system

Sub $50k loans - there may be an origination charge or points possibly and is determined by the system when the loan is locked.

Rates fluctuate daily and are determined by credit score, and other factors.

Here is a link with a list of the conforming loan limits for 2017

2017 List of Conforming Limits.

Here is the site to look up FHA and Fannie Mae/Freddie Mac Loan Limits.

FHA & Fannie Mae Conforming Limit Look Up.

You can borrow for up to 10 conventional mortgages, down to a price of 10k, and up to conforming limits in your county. You have the option of a 15, 20 or 30 year term.

You can have an unlimited amount of mortgages and still obtain Primary Residence Financing.

1 unit - $424,100

2 unit- $543,000

3 unit - $656,350

4 unit - $815,650

Standard Conforming limits are below;

Anything above this limit, but below your specific counties conforming limit is considered high balance financing. There are different guidelines for both standard conforming limits and for high balance financing. Jumbo loans are for primary residence only and above conforming limits.

Standard Conforming Limit Financing

For A Fixed Rate Purchase, Primary properties, Mortgages 1-10;

• A SFR requires a LTV of 97% (first home only) then 95%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75% (possibly 80% with Freddie Mac - on mortgage #1-6)
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 1-6;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 7-10;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 720

High Balance Limit Financing (Within Conforming limit for individual county specific, & above standard conforming limit)

For A Fixed Rate Purchase, Primary properties, Mortgages 1-6;

• A SFR requires a LTV of 95%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75% (possibly 80% with Freddie Mac)
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgaged properties 1-5 ONLY ALLOWED. You can not do a high balance loan on an investment property if you have greater than 5 mortgaged properties, including subject property!

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

Rental income;

You are required to have a paid mortgage history to count rental income.

If a recent purchase was soon to reflect on tax returns than 75% of the lease agreement is used.

If the purchase is reflected on your tax returns than that income is used.

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to 6 months PITI for the subject property are required.

Cash Reserves Required For Other Properties Owned by Investor;

Cash Reserve Requirements;

6 months PITI is required on subject property.

If you have 1-4 financed properties than it is now 2% of all unpaid principle balances.

If you have 5-6 financed properties than it is now 4% of all unpaid principle balances.

If you have 7-10 financed properties than it is now 6% of all unpaid principle balances.

Money must be in account for 60 days or sourced. A HELOC can be used as down payment, but not as cash reserves.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm

STATES WE LEND IN:
Alabama,
Arkansas,
Arizona,
California,
Colorado,
Connecticut,
Delaware,
District of Columbia,
Florida,
Georgia,
Hawaii,
Idaho,
Illinois,
Indiana,
Kansas,
Kentucky,
Louisiana,
Maine,
Maryland,
Massachusetts,
Michigan,
Minnesota,
Missouri,
Nebraska,
Nevada,
New Hampshire,
New Jersey,
New Mexico,
New York,
North Carolina,
North Dakota,
Ohio,
Oklahoma,
Oregon,
Pennsylvania,
Rhode Island,
South Dakota,

South Carolina,
Tennessee,
Texas,
Utah,
Vermont,
Virginia,
Washington,
Wisconsin

@Amber Imburgia

I am glad you enjoyed the presentation! Great locations for rentals! I look forward to working with you in the future as well!

My previous primary I refinanced it out of an FHA to conventional and gained the 20% equity to eliminate mortgage insurance. Then 2 of my other rentals I used it on as well. I used the cash to then purchase my current primary and do some remodeling. My other property, I got a HELOC out on in the hopes that previous tenants were going to purchase it, but that has happened yet, so I should have done the BRRR method on that as well. I am not for HELOC's as they have adjustable rates, but my plan is selling this property. Conventional financing now allows you to cash out on up to 10 financed properties. I am up to owning 5 properties, and only plan to sell the one, because it is an hour and a half from where we live.

@Ram Rao

Exactly as @Chris Mason said. You are fine to rent it out and because you have a mortgage history, you can count the rental income towards your new purchase. 

@Justin Pease

I am a strong advocate of the BRRR strategy, like the others!