All Forum Posts by: Joseph Coleman

Thank you for your post Mike and welcome to the BP forums! 

I think your approach makes sense.

A couple of resources, 

1. It would probably make sense to establish relationships with agents and lenders and ask a lender about how you can best prepare for your next purchase. For example, how you file taxes now could have an impact on your ability to get a loan in the future. 

2. You may want to look into banks that offer loans designed for medical professionals. 

3. Brandon's intention journal could be helpful - link to book. 

@masonweiss

This is an interesting new product. I would work with a lender to have them run both scenarios for you so that you can compare and make the best decision for you. Most notably, I think the biggest difference will be the APR. FHA is generally a little more expensive but it depends on your situation.

BiggerPockets has a lender finder tool that will help with finding an investor friendly lender. Link to Lender Finder. 

This is more of a legal and accounting question. 
These resources could be helpful, 
https://aaplonline.com/
https://geracilawfirm.com/
https://store.biggerpockets.com/products/lend-to-live

Mark Hu
I think this could be helpful. You could always send Craig a DM. 
https://www.biggerpockets.com/users/craigo31

@Havan Surat

Thank you for your question. I see a lot of investors asking this question. After all who doesn't want 100% financing?

Short (practical) answer: No.

Long answer: You could, but you will need some unusually great compensating factors. For example, I know a couple lenders who will go up to 100% for experienced investors who are getting properties far under market value. Or if the investor can put up more collateral. 

This question is like asking if you can get into Harvard with a 3.0 GPA. Maybe you can if you already have a perfect SAT, make a large donation to the school, and have a personal relationship with the head of admissions. 

@Anup Jung Karki

Pace Morby may have some resources on this. I have never heard of hard money lenders doing anything related to sub2.

@Jad Rahouly
Hey Jad,
Thanks for you question. You will never regret reaching out to investors and learning about what they do. There are many different paths. The most important thing to do at your age (in my humble opinion) is to take action and try many different things. You just need some momentum and you get that by getting started. I would take whatever opportunities you come across. Jump on them and give your very best.

I say that with one caveat. Overtime, you need to decide if you want to be an investor or make money from the transaction like an agent, flipper, etc. They can both work and you can do both at the same time but they should not be confused. 

@Kelly Williams There are many lenders that can do various types of DSCR loans. The lenders above described some great pros and cons. I would make sure you understand how the lender estimates rents (some can use AirDNA and others only use comparable long term rents). You can find many DSCR lenders on BP's Lender Finder and read reviews. Easy Street is one of the few that does STR's. DSCR loans for STRs based on Airdna data is very hard to find.

@Ryan Sun A loan officer is going to be the best person to advise on the mechanics of how to accomplish your goal.

When lenders sell and purchase loans on the open markets they do (in theory) have options to get you a higher interest rate loan with lender credits. 

I have never heard of selling points. Also, on a side note "points" just means percentage points. It may or may not be for a rate "buy down" 

What you are referring to are lender credits. Read about them here. 

But to answer your question, 
"Would it be advisable to sell the points, receive closing credits, and subsequently refinance when the rates drop?"

This is essentially another way of asking if you should you place a bet that rates will decrease. I would take your money to Vegas for better odds. 

@Matthew Lindsey
This is somewhat unique to have LLCs renting from an LLC. I would take statements from lenders that they know this will not be a problem with a grain of salt. A lender needs more information to know if they can do this.

For example, if there is any sort of affiliation between the lessee LLC and LLC that owns the property, that is obviously going to raise red flags. I would just be careful through out the whole process and make sure your lender really understands the guidelines that they are underwriting to so that you don't have surprises down the road.