All Forum Posts by: Jerry Padilla

You can do sub 50k loans....... Down to $10k.

@Nazz Wang

@Aaron Mercer

@Steven Barros

@Michael Stevens

I agree with Jay about the credit cards. It will significantly reduce your credit score if you have maxed out credit cards. Any credit card debt over 30% is going to hurt your credit. 

What is your reasoning for not qualifying for a mortgage? 

@Stephanie Garcia

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
• On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• Cash Reserves Required For Other Properties Owned by Investor;
  
  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

@Stephanie Garcia

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

• The new loan amount is not more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV).

1. 1. SFR mortgage #1-4 - 75% LTV
2. 2. Duplex mortgage #1-4 70% LTV
3. 1. SFR mortgage #5-10 -70% LTV
4. 2. Duplex mortgage #5-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.

  Ineligible Transactions

  The following transaction types are not eligibleas cash-out refinances:

  • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
  • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
  • The subject property is currently listed for sale
  • The existing mortgage is a “restructured mortgage”
  • Transactions in which a portion of the proceeds of the refinance is used to pay off the

    outstanding balance on an installment land contract regardless of the date the installment land

    contract was executed.

  • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.

@Sandy Salazar where is the condo located? Condos can be difficult to cash out depending on location and other factors, but you can still qualify with the low value.

@Michael Alford

Why only 5 days?

You can post in the marketplace as well and you may get more interest there as well.

@Quy Huynh

10 SFR - if you have no mortgages you can get conventional financing. Do you have experience in investing? A 10 unit building requires commercial financing.

I would go where the return is the greatest. 

@Amanda Jacobellis

Have you been pre-qualified for a mortgage?

Do you have an agent? 

If you do, are you set up on an emailing for duplexes that come on the market? 

You can search craigslist and FSBO sites as well.

Just a few ideas, for starting out.......

@Matt R.

The prices in CA are so extreme compared to other areas, like here in Rochester. CA is so high in demand and the appreciation is so great. The greater the risk the better the reward, I guess. It is like a stock market game. if you are looking at it long term though, do you think rents would drop as well? It seems no matter the situation, rental prices go up, at least with my experience.

@JJ GONZALEZ II

Turnkey-reviews is a great site to check out. This site has some great investors/agents/property managers on here. 

I am glad to answer any financing questions on here as well.

Have you considered owner occupying in your area and purchasing a multifamily?

@Eric La Pratt

Welcome back to the real estate world again! Once you start and see great returns it is hard to ever give up! If you are looking at investing out of state.....

@James Wise has a team of agents that I work with and get a great returns on purchase prices. We share a lot of the same clients, that have been pleased with his knowledgable team.