All Forum Posts by: Kathy Calderini

@Lucia Rushton there are 3 types of Lenders; conventional (includes FHA/VA loans) hard money, and private money. In the conventional world, loans that end up on Wall Street the seasoning requirement is 12 months. In that same bucket there are portfolio lenders that keep there loans and the underwriting guidelines are not as stringent. Requires the most paperwork to qualify.

The hard money lenders base there decision on the asset, and usually can go to 65% or 70% (may be able to go to 75% of ARV depending on the deal) of the value of the home with repairs included in the value. Less paperwork required to qualify.

The private money lenders can do whatever they want with their money.

Might have some strings attached. Paperwork varies.

Hope this helps and make it a great day!

@Joseph Ayala improvement cost based on square footage could present some challenges down the road. Best to use a Scope of Work and fill in what improvements are needed with rough numbers. If you decide to move forward on the project, devil is in the detailed Scope of Work.

The cost of a home that needs a roof, furnace, and updated kitchen would be much higher then a house that needs cosmetic improvements even if the square footage was the same.

Hope this helps and make it a great day!

@Wayne Brown I am not a fan of borrowing from a 401k because of all the unknowns that go along with it.

If the property has a positive cash flow of $500/month, I would just let the mortgage ride. And/or refinance the property to use the excess equity to help obtain financing for your next project. Just be sure you have a reserve set up and the cash flow stays positive.

That property will give you experience for your next project but having a free and clear property versus a $12,000 mortgage will have little to no impact on the financing for the next project unless you use conventional financing or FHA.

Hope that helps and make it a great day!

@Jonathan Perez cash reserves are the key to surviving a market crash. If you invest in strong markets, get great tenants, and have a reserve fund set up you will be fine!

Financing just gives you the ability to acquire more properties faster.

Hope it helps and make it a great day!

@JC McClain be sure you do your homework on any deal that a wholesaler is involved with. Most projects do not have an extra $5,000 to $15,000 profit in them. Patience to find your own projects is worth that amount of money in my book!

@Sean Paulson Congrats on taking the first step into real estate investing! There is a lot to learn so keep asking questions. Best of luck!

Make it a great day!

@Lucas A Davidson Not sure of all the details but there are 30 year loans in Hard Money Lending arena and in the conventional lending.

Hope this helps and make it a great day!

@Armani Emon Thanks for sharing and sorry someone did that to you!

There are a ton of great people in this business and unfortunately some that are not trust worthy! Hopefully the financial hit was not that bad.

Best of luck in the future!

Make it a great day!

@Dustin Pavlik choosing a lender is not as easy as it sounds. Be sure focus on your goals when asking question’s to the lender as well as the project. Details of the project are very important so have your details ready prior to calling. Even if it is just an example, stay consistent for comparison purposes.

There are various types of payment options, prepayment options, terms, and strategies based on your goals available. If you would like more information please connect and we can discuss.

Hope this helps and make it a great day!

@Oz Ramos thank you for your service and best of luck with your investments!

Make it a great day!