All Forum Posts by: Ko Kashiwagi

Hi Inga,

As other have mentioned, most lenders require 6 months but there are ones out there that can do 3 months. I don't think you need to necessarily go private money here. If you are looking for a 30 year fixed, it's likely best to go for a DSCR lender that can do 3 months seasoning.

Happy to help.

Hi Wil,

Many people get a LLC in the property they are buying under the holding company. You could still buy the property with your WY Holding LLC, but you may need to file a registration with the Secretary of the State of the state your are investing in to obtain financing.

Hi Chad,

Did you request to see the quote at that specific rate of 7.625%? And was this for a conventional financing? Typically, a lender would present the option with no points unless the borrower asked to pay down the rate. Otherwise, it's because the lender is quoting a conventional program and the highest rate your lender was able to quote was 7.625% with points. And yes if you are able to secure the same rates with less or no points, that is obviously a better deal.

Hi Deepak,

Most lenders will not do a line of credit on investment properties. It's probably best to go to local Credit Unions and small banks for those than large institutions at the moment. However, many line of credits require initial draw so you may have to make payments on it.

Hi Ryan,

It seems like a matter of risk tolerance. Fundamentally, the first deal you do is the riskiest. As you gain experience risk goes down. Are you planning to visit the sight often? Given you can oversee some parts of the project, with enough research it sounds like a good plan to get started with a BRRRR/Flip. Another way to reduce risk is to use leverage. For instance if you can fund with more cash and less from the HELOC, this will also reduce the risk even in the case you mess up a little bit.

Best of luck!

Hi Daniel,

Investing in the Bay is a great play if you are looking for long term strategies. Out out state is great for cash flow, so it's a matter of what you are looking for. House-hack would be a great way to slowly scale - is this a strategy you were thinking of?

Hi Adam,

Welcome to BiggerPockets!

Hi Brandon,

Is there a reason your partner is not going on the loan? It would make the situation less complicated if that is a possibility as you wouldn't have to worry about the recourse of the loan. It seems like the partnership is not based off of a split in roles, where one brings in cash and the other brings in experience + sweat equity. If both of you are investing cash, why not split the down payment and the renovation? If you trust her 100% in actually doing the renovation, then 50/50 can makes sense.

Hi Ben,

Great to see other younger professionals in the space. I used to source off market deals for investors and have done 25,000+ cold calls. The truth is most methods work - cold call, direct mail, referral programs, driving for dollars, etc. I'd suggest briefly look at all the options, then just pick one. The most important factor is consistency, as jumping from one strategy to another over a short period is ineffective.

Hi Marcus,

Doing the homework and aligning the style of the home to comparable homes getting the top rent is definitely important. For instance, if the top market rent properties have a pool, it would be important to have a pool.

For 1-4 units, you could still get qualified for 75% LTV with 1.1 or even 1.0 DSCR. For commercial multi-family, this will be different, and having 1.20-1.25x could be the requirement for best rates and terms.