All Forum Posts by: Derek Brickley

Hey Nick!  
I’m not sure if it would make sense, but would be happy to learn more about you and your situation to see if we could possibly help.  Our team has worked with seasonal/variable employees and so we have developed a system for calculating it that maybe could help at least point you in the right direction.  Feel free to reach out if you have any questions!

Hey Chetan!  Would need to know a bit more about your situation, but we have done something to help investors modify their debt service on portfolios.  I’m not sure it would work for your situation or not, but feel free to reach out if we might be able to help.

Hey Stephanie!  Great question and would be happy to talk in more detail but:

Although there are many transferrable skills, unless you work for a bank that pays you a salary (generally with no commission) I have yet to see a way for new loan officers to not start at the bottom.  Generally speaking it may be a struggle especially while you get your feet wet on how the process works, learning guidelines, etc.  Then building an active pipeline to help buyers can be tough to get moving.  I have seen multiple people leave a successful career to jump into the "lucrative world of real estate" whether that is as a realtor or a lender, only to dry up their savings and quitting 6 months down the line.  It's not for everyone, and starting in it and being successful will take a lot of time, dedication, and effort.

With that disclaimer aside, I cannot imagine another career for myself.  My previous skills transferred seamlessly to the financing side, the numbers and learning and structuring loans.  For many people, their home is their largest purchase and as a loan officer we may be the closest to a financial advisor they ever speak to.  We have such an impact on those peoples' lives that it is extremely rewarding, and when done right it can be enjoyable/fun too!  

In short: It's a great career path for those forward-thinking that will put in the work and enjoy helping people.

Hey Orhi!  There are really only a few ways to lower your quoted rates.

1. As mentioned paying points to buy-down the rate.  However with rates slowly coming down, paying a significant amount of points might not be in your best interest long-term if you will just refinance to a lower rate in the coming year or so.  

2. Increasing your downpayment/equity position and/or credit score.  This might be the hardest route, but depending on your situation could provide the most benefit. There are huge price incentives at different Loan to Value ratios and with higher credit scores, so jumping to the next bucket might give you an edge.

3. Prepayment penalties can be a great way to get better terms on an investment loan.  The key questions though are: how long? what is the pricing incentive? and what is the prepayment penalty?  If you can get significantly better terms with a one year PPP, well that might be worth it.  Or in the case of an investor we just helped he elected a 3 year prepayment penalty to improve his terms, but the PPP is only $750.  You come across the same trade-off here as paying points, if you wish to refinance earlier to a lower rate then make sure that penalty is worth it.

Hey Tim, not sure if we would fit what you're looking for, but would be happy to learn more about you and your situation to see if we might be able to help. Looking for a cash-out DSCR it sounds like?

Got it, you may benefit from an additional account then for that purpose.

Hey David! Would need to know a bit more about your situation and goals to see if we could possibly help, but we have worked with foreign national investors looking for DSCR investment loans. Feel free to reach out if you have any scenarios we might be able to help with!

Hey Nicholas!  First of all, congratulations!  Hard work sounds like it's paying off.  Getting into real estate there are a few thoughts:

1. Househack:

With good credit and $50k available, getting into a househack could be a great way to decrease your living expense while also getting a property under your belt.  You might be right about the inconsistency in income and that could possibly impact your ability to qualify.  Would you have a relative/family member who might have sufficient income and could possibly be a non-occupying coborrower for you?  This way you could still buy it as a primary residence, but use their income and/or the rents from other units to help qualify.

2. DSCR:

Now this might not make sense in your market, but you could possibly use a DSCR loan to help get an investment property. Downpayment requirements are generally 15-20% minimum, so it may limit the properties you would be able to find. With that said, the benefit is that there is no income verification (no paystubs, tax returns, W-2s). You would potentially qualify based on the property's rental income.

3. Creative Finance/Wholesaling

As you mentioned, if you're nailing those summer sales you may be able to transition those skills into real estate with creative finance or wholesaling by going direct to sellers.  Whether doing direct mail, door knocking, or cold calling you may be able to find off-market properties and negotiate terms with the seller that work for the funds you have available.

Hey Nolan!

I’m not sure if was you or someone else in the forums when this loan program first came out, but yes as a Fannie/Freddie loan this is going to be industry standard for 5% down conventional.  There may be lenders who offer a similar program but definitely do your research on their fees and investors.  Believe it or not it can hurt you as an investor/owner in the long run if it is not backed by Fannie/Freddie.  

You would not come across this issue on FHA, but on 3-4 units you would encounter the self-sufficiency test.

I ended up closing on a house hack myself with the 5% down conventional the first week of this program so if you have any questions or if we might be able to help, definitely feel free to reach out.

Hey Peter!  We’d have to learn more about you and your situation to see if we might be able to help, but definitely feel free to reach out!