All Forum Posts by: Jerry Poon

Thanks for clearing that up. Would it make more financial sense to dry up my non-portfolio loan sources before doing portfolio? It seems that most non-portfolio lenders have better rates than portfolio lenders.

 Did you get to a 10th loan through a traditional loan? How did you forego the debt to income ratio?

I have the impression that portfolio lenders give loans based on the performance of the properties. While I was speaking with my personal bank, they said they could offer better rates in the form of a traditional mortgage, but would cap my lending amount at a 43% debt to income ratio.

My goal is to leverage my money as much as possible to maximize my buying power. Is it better to forego the better rates of a mortgage and stick with portfolio lenders because of the fact that portfolio lenders can lend out more money in the long run?

Recently, I had a few appraisals done on properties in an area that produces good cashflow at the price of the quality of the properties. I don't care about the quality much, as I will never live in the area. I care about the cashflow, and I am in no way counting on appreciation. With that being said, two major problems came up.

1. The appraisals came back at about 80% of my purchase price. This is a major, major red flag to me. I do understand that some appraisers take into account short-sales, low cash purchase numbers, and might have subjective comps in their methods, but going into this will put me underwater from the get-go. How much stock should I put into the appraisal price?

2. This kills my buying leverage-based strategy, as my financier only covers 75% the lower number between appraisal and purchase price. Because of the low appraisal, the bank will be lending me a lot less money than I originally intended, and now I might have to drop one or two of the properties, which changes everything. Is there any way the appraisal numbers can change without me having to pay for additional appraisals?

Has anyone been in this situation before? What did you do?

@Steve A. How did you manage to get 30 units in 1 year??

@Franklin Romine A little reckless... but I like your style.

@Joseph Ball Do you know of any turnkey sellers in that area?

 Do you buy them as-is? Do they need rehab?

@Brandon Turner wow its the great brandon turner

@Brandon Sturgill @Engelo Rumora Nice nice. Are those areas recommended for out of state investors? I'm kind of priced out in CA, so I'm looking for turnkey places elsewhere.