All Forum Posts by: Jon Puente

Hey Andrew, 

I actually work with Stephanie who commented above.  She is a true expert in this area so I would DM her for more info.  The reality is this:

1) Charlotte is a growing city regardless of what area you choose.  Obviously we do not want C or D class properties because those do not pan out well longterm.

2) It's hard to get both cashflow and appreciation, and so focusing on the outer skirts of Charlotte will yield the best results for both worlds. 

3) A lot of it depends on the financing too, so working with a broker who can show you options for financing will help as well. 

Hope this helps!

Hey Travis, 

I would absolutely let a lender know if you have a property being seller financed or private financing on the side.  If it generates income and you declare income, then it shouldn't affect your ability to get a loan overall.

However, if you do not disclose, I can almost guarantee that is pops up during underwriting and may have an affect on your deal.  Has it slid past UW before? Sure! However, most lending companies have gotten VERY aware and dig deep to make sure that loans being originated right now are accurate and repayable, in efforts to avoid another 2008. 

Just be upfront and truthful, and it shouldn't be an issue.

Hey Nathan,

Absolutely! I have several sources in TX that can do investment financing for SFR's. Please DM me and I am happy to refer you to someone on our team!

VERY important factors to consider for home buyers coming soon are the LLPA adjustments coming on Fannie/Freddie Conventional loans.  Here are some things to watch out for - 

1. Credit scores less than 679 with 5% down will be getting a nice decrease in upfront costs for par rates.

2. 720-760 credit scores with 15-20% down will be getting a big upfront cost increase for par rates. 

3. Other factors to include is that Second Homes and Investment properties, using Conventional loans, are typically 1%-1.5% higher than Primary Residence rates, regardless of credit score. You can put as little as 15% down on an investment property and 10% down on a second home, HOWEVER rates/costs become much more advantageous at 70%-75% LTV.

4. PMI on Conventional loans is MUCH less for higher credit scores, so even with 5% down, your PMI might not be as much as you think if you are 740+ credit.

I guess the point is to encourage people to become homeowners regardless of credit score and down payment, and basically level out the playing field from those who have 700+ credit scores with higher down payments.  

I am curious about your thoughts?  

Hey Abner, 

What state are you in and have you contacted a mortgage broker? Typically brokers offer better rates and fees than big banks or retail lenders because they can shop around for the best deal pertaining to your scenario.    

FYI - 5K in credits really isn't something to automatically choose a lender over, because you can have a seller cover all of your costs in this market anyways.  

Start reaching out to brokers in your area and compare your deal. 

Hey James, 

Shoot me a DM and I am happy to provide a contact for property management in Kalamazoo, MI!  I was actually born and raised there and know the area very well.

Hey David, 

I would just put it up for rent in that ballpark - $1900 to $2200, unless your payment is too high to cashflow at those rent prices.   

Throw up your listing for $2050 on Zillow and see what happens!  If no one bites after a couple of weeks, then you can lower it.  

Hey Mario, 

If you are hesitant on showing income on your taxes because you do not want to pay taxes (which I understand), why dont you try a DSCR Loan Cash Out refi?

If you have substantial equity in one of the properties, or at least enough so that you can tap into it, and still keep your DSCR ratio at 1:1, then you wouldn't have to worry about this at all. DTI is not a factor on DSCR loans and DSCR rates aren't that much worse than a normal Conventional Cash out right now. It would make this scenario much easier on you come tax time.

Just a thought!

Hey Toben,

Let me help you with this really easily, as you can break down closing costs into 4 main parts (for any loan):

A) Upfront Fees and Discount Points - This is charged based on the rate YOU choose. The lower the rate, the more expensive it gets.  The higher the rate, the less expensive it gets.  This is the only cost that is lender specific because each lender has different profit margins on loans.  Some might charge 2K in points for a 6.99%, while another might charge 0$ in points for a 6.99%. 

B) Appraisal and Misc Fees - This is typically anywhere from $500-$850 for any loan, does not matter the lender.

C) Title Company Fees - This will be fixed because its based on the title company you choose, not the lender.  If you want cheaper title costs, then select a different title company.

E-G) Prepaids and Escrow - This is based on what your taxes and insurance will be in your area, not the lender themselves.  If you want cheaper taxes and insurance, then find a property with cheaper taxes and insurance costs (like moving further from the city).

The only one that is going to vary (and sometimes drastically) is the upfront fees and points, which is all you need to know for shopping lenders.  Everything else is relatively the same. 

Great Question!

Hey Zach,

I would call local credit unions in Utah or small banks that would grant a HELOC for you. It sounds like you are looking for a HELOC for an investment property? They are rare, but not impossible to find right now. I think small lenders are your best bet.

Otherwise you could do a Cash Out Refi on that property to tap into equity, worst case scenario!