All Forum Posts by: Ko Kashiwagi

Hi Michael,

10% down is widely available with good FICO scores and cookie cutter deals (rehab<purchase) typically above 720 even for first timers. Only reason it'd be difficult is if it's not cookie cutter (rural, super low purchase price, heavy rehab, structural rehab) or your FICO is low.

What kind of deals are you looking at?

Hi Matt,

Is your primary concern about the appraisal the valuation? If the comparable sales are going for 1.365M it should be good to go. If this is the only property with multiple houses in one lot (and this isn't a triplex), some appraisers may mark it "unique" which could be problematic. If these multiple house on 1 lot situation is not unique, I would look into who financed those properties then go from there.

If the concern is market rent, there are programs that go off of AirDNA or "STR comps" so that should be easy to clear.

As others have noted, it would be a clear distinction to identify whether that person is a true end buyer or a wholesaler.

I've personally seen someone sub-to a hard money loan and take over someone else's hard money loan (not assumption but just sub-to) so this is possible. Unless they are offering much more cash than you can get on the flip (After lowering the price), it doesn't make sense to take the risk and sell sub-to because most of these loans are not assumable and you will take on the risk of "due on sales clause"

If there's enough equity, you may be able to do a cash out refinance and use those cash proceeds to buy her out & change vested title in a LLC you only own.

What's their experience looking like? Ground up loans are very experienced based. If they have 3-5+ experience those high leverages are typically available.

Congrats! Do you still actively buy in the same area?

As others have mentioned, HELOC or cash out refinance should work. HML typically only requirement the down payment + few months of reserves, so you shouldn't need to show that much in cash.

If the property is a rental property (not a primary), DSCR loans are typically a good fit for your scenario. DSCR qualifies borrowers with rental income rather than personal income, so you don't need tax returns.

HI Loulian,

Most lenders cannot do it but options are there even with less than 100k total loan. I've personally seen as low as 50k loan total on rehab deals.

Happy to chat.

Hi Muhammad,

It's a great idea to compare the markets and this is a million dollar question that I always hear from both sides. Even though you are doing the same "strategy" (BRRRR), the two markets are a complete different ball game. The type of properties, the cash required, type of projects and competition is not the same.

There's people swearing they are right on both sides between in-state and out-of-state, but personally if you have the option to do in-state, it's the best way to get started. Easier to stay in touch with the project and less uncertainty. The truth is in both market, you can make it work if you know what you are doing.

The ADU game is especially hot in Seattle right now so I'd look into that. Buy a house that's needs repair with a big lot, repair the house and build an ADU.

I've also heard from multiple Cleveland investors that contractors are very hard to find right now because of how many out of state investors have moved into that market.