All Forum Posts by: John Karg

 Hi Marie, 

If the new property would be a primary residence, you could put 5% down for 2-4 units. We can confirm your Debt-to-income ratio to figure out how much you could afford--feel free to reach out if interested. 

Hi Ryan,

Great to meet you--I'm also an investor in Palm Beach County. I think it's a great place to invest for future appreciation, despite not being able to cash flow at the moment due to interest rates. Let me know if you'd like to connect anytime, and I'm happy to share any local contacts that you might need. 

Hi Andrew, personally I would contract in stages. Since it will be a contractor that you haven't worked with before, the last thing you want is to have trouble with them from the beginning and not be able to change to someone else. 

Hi Sean,

If I understand correctly, I'm not sure why you would be prevented from getting a HELOC with the personal loan. I'd need some more details, but I'd be happy to go through it with you to check.

Hi Marie, I would have the same suggestion about using a DSCR loan--it's essentially made for people in your exact situation. These loans look solely at the property's income, and won't consider your DTI or personal income. Most of the time the requirement is that the DSCR ratio is above 1.00, which just means that the rental income of the property has to be at least as much as the mortgage PITI payment. The minimum down payment is 20%, though you'll get a better interest rate if you put 25% or more down. Feel free to reach out if you'd like me to explain more in-detail the requirements!

Hi Matthew, let me know if you need any info on Florida! 

Mortgage rates just dropped sharply for a 5th straight week. Do you guys think rates have peaked? Are you factoring this into your investing plans? 

Many are surprised to hear that interest only loans are possible on 1-4 unit properties, but they most certainly are! See below and contact me to talk through your scenario. 

Hi Justin, 

I'm a strong believer that you shouldn't waste time or money on any of the many real estate gurus. They may help motivate you, but they aren't going to find a property or close a deal for you, which is what really matters. 

All you need to buy real estate is a property, some cash and a loan. You can get your advice and guidance free from the internet, your agent and your lender. Anything else is just a money grab! 

Hi Tyler, 

As others have mentioned, discount points are usually optional but can sometimes be required on certain loans. A good lender will suggest creative ways to lower your closing costs, such as getting a credit from the seller or financing underwriting fees. Feel free to reach out if you have questions!