All Forum Posts by: Jerry Padilla

@Elda Castillo

There are none that I am aware of for investment properties. There is cash out financing. If that is a route you are interested in, I am glad to send you more details.

@Matt F.

I was a loan officer for them years ago. They do have the ability to portfolio lend, but rarely do. 

They are capped at a maximum of 4 properties maximum and also require a 2 year rental history for financing.

I am only a financing expert, not an attorney so I don't know the legal benefits of each...... But I am seeing more investors geared towards a possible living trust lately and wanted to do a post on this topic. Before doing this I would definitely speak with your local real estate attorney. 

Here is a breakdown of the guidelines we go by for a living trust-

Purchasing Investment Property With A Living Trust;

You can purchase with a living trust - except in the state of Texas.

-You must be within the state and local regulations and requirements

The borrower must be the;

-The settler (person who created the trust)

-The beneficiary

-The trustee (the person who will administer the trust to the beneficiary)

Eligible for;

1-4 unit primary homes

1 unit second homes

1-4 unit investment properties

Requirements;

-An attorney opinion letter

-Complete copy of the trust documents certified by borrowerer

@Aida Hofmann

As mentioned above, you are not able to purchase investment property with an LLC, and get conventional financing.

You can purchase with a living trust - except in the state of Texas. 

-You must be within the state and local regulations and requirements

The borrower must be the;

-The settler (person who created the trust)

-The beneficiary 

-The trustee (the person who will administer the trust to the beneficiary)

Eligible for;

1-4 unit primary homes

1 unit second homes

1-4 unit investment properties

Requirements; 

-An attorney opinion letter

-Complete copy of the trust documents certified by borrowerer

@Eric P.

You won't get conventional financing to lend to a land trust. You have looked into financing well! 

You have made no mention of an umbrella insurance policy though. We pay $600/year and have $1 million coverage on each property, including our primary residence. 

It is the route I went, and from my research it is better coverage than an LLC. With an LLC they still have rights to your entire property.

@Robert Brue

Zillow lists these properties for free, when you create an account. 

@Dylan Anderson

How are these properties financed? Conventional or Commercially through your LLC?

Conventional will require new purchases to be placed in your individual name. Was your previous lender using rental income that you are currently receiving in addition to potential rental income on the future purchase? 

Many lenders have an overlay and don't use this income - which can make or break you getting qualified. 

@Heather Sikora

Yes, 20% equity to get rid of mortgage interest. Conventional mortgage interest is less than FHA mortgage interest. FHA mortgage interest will not automatically fall off with a 30 year mortgage, if you put less than 10% down. Closing costs can roll into the loan if you meet the required LTV. How many units? Is it a SFR or a MFR?

@Sarah West

It all depends on your DTI ratios. If you can support the mortgage payment, with rental income counted at 75% of the lease agreements, than you should be good.

@Sajani Inampudi

Check out turnkey-reviews.com

I personally would finance it and purchase several properties, instead of one property with cash. Let your tenants pay the mortgage and leverage your money.