All Forum Posts by: Juan Maldonado

@Brad, sent you a private message

Hector Bastida and Ray Lai , when I was buying a duplex to house hack, I created a calculator. All you would need to do is fill in the FHA limit for your particular county. Once you fill your income and expenses it will also tell you what your front end and back end ratios are. If either of you guys want it or anyone else feel free send me a PM.

@Jay Lalik, I pretty much agree with everyone here. Unless you know of some major change at the city, municipal level that you feel will revitalize the area it will be very difficult. Also make sure that you focus on projects and legislation that is already "passed or approved" at the city level not "planned or proposed" EXTREMELY different things.  As someone mentioned above change properties not neighborhoods. 

Dennis, you should really look into Freddie Mac small balance loan. If you can qualify I think this would be the best option for this type of deal. 

Eldar, could you please send more information. [email protected]. 

Thank you. 

Brian Plowman , yes this is pretty common in the multifamily space. Typically people that are planning on doing what you mentioned will use a bridge loan. These are typically short therm 18-36 month term loans. They can take you 70 to even 85% LTC. They are more expensive and have higher fees, but they expect you, to take them out via a sale or refinance to a permanent loan. The great thing is that if you do your value add and you are able to raise the value from let's say, $1 million to $2 Million, on the refi at 75% LTV, your loan proceeds would be 1.4 MM, so you would get to keep the remainder after you pay back your bridge lender. For the size deal I am assuming your talking about under $1 Million, I would think that approaching a local bank would be your best bet. Since your looking to refi ask them what their options are after you increase the property value. If it appears no one is willing to do a refinance, then figure out who has the absolute lowest prepayment penalties. Alternatively, if you are able to buy the property cash or very low leverage, you could go and get a loan on it at that time and once again be able to realize the upside in your deal. If your deal is $1MM plus, let me know and I will put you in contact with someone who can help you do a Freddie Small Balance Loan. For whatever reason this program is incredibly aggressive and it will be tough for anyone to beat their terms.

@Mason Peatross, 

I used Positive Construction but it was a mess. Would not recommend them. 

@Olivia Bryant didn't tag you on the post above

Olivia, 

Not sure how far you are on this but something I would really suggest you DO NOT do is to provide your 203k Inspector a copy of your home inspection ( if you do one). If they ask tell them your not getting one, they may encourage you to do so, and I think you should, but do not show them. 

I made this mistake and I was required to do some unnecessary repairs that on the inspection were "optional" and he felt they were required. This cost us an extra 17k in repairs. 

CHRISTIAN, 

My wife and I did a 203k loan with Tony Ruff from Movement mortgage. Very knowledgeable and easy to work with.