All Forum Posts by: Logan Drew

 Hi Andrew!  Please PM me for some direction this.

Transitional neighborhoods are probably not what you have in mind being used to Orange County life (I lived in Lake Forest/ Laguna Hills for the last 10 years before moving to Pasadena).  There are still great opportunities for distressed properties there in South County.  It is a matter of finding out how you want to close (financing, cash for down, etc) and making your offers look like they are as good as cash.  If you can snag a great fixer in the OC, you can certainly use that to propel you to many deals in the future.

Please PM me if you need help connecting with off-market and distressed deals in Orange County (and good agents).  My network and past experiences there were focused on distressed property lending/ investing and the like.

 Thanks Dustin:

You don't need 2 years rental history to use the rents.  Also, as for your debt-ratio, you literally add up all your debts (and costs to carry the rentals that are shown on tax returns) and divide that by the total of your income and gross rents (adding back in your depreciation... not counting it as an actual cost).  Aggressive lenders (that do exist as I am one) don't require the rental income to be seasoned.  If anything, 1 year seasoning gets you done and done.  2 years is not a requirement.  Hope this helps.

Stay away from any lender with 'up-front' fees.  The only lending fee you should pay prior to the close of a residential property is for an appraisal (and possibly a credit report fee that should be very cheap).

Assuming you are picking up properties that are cash-flowing with a certain margin and you're showing the new rental income on your tax returns year after year, you should be able to buy up to 10 financed properties without maxing out your debt-ratio (all while making sure you are using a lender that gives you 100% of your rental income and doesn't hit you for rent loss of 15%-25%).  The conforming limit on financed properties is 10 properties financed.  After that, you are relegated to portfolio or other non-conforming financing products.  It's all about the deals you find and how well they cash-flow.  Let me know if I can help you with this.

Welcome to BP Camille!

I am also curious about hard money with buy/ hold sustainability.  If anyone has the info, please PM me the contact info of the HM lender that is financing buy/ holds.

Absolutely!  You should take your list of needs and demands (rate, term, fee?) and start with making sure the lender can meet those needs or at least verify if they'll consider your desires as important.  From there, a good lender will educate you on what portion of your needs fit guidelines and best practices and what of your needs cannot be met by them or anyone else simply due to the guidelines in play.

PM me to connect if you like!

Yes, Brent... exactly. Whether you 'save' more or 'spend less', the yield on cash or deposit accounts + any tax shelters will save less than the interest payment on the HELOC will cost... unless there is some depository account/ timed deposit out there that is yielding We're in agreement and speaking about the same thing.

 Hi Jacob:

PM me your contact info and I'll call you... or call me direct at 412-478-3992.

The conservative answer is pay down the HELOC when you can and as soon as you can as it will cost you more than the cash will yield... and as you said, you can go back to the HELOC and draw again as needed. The Prime Rate will be increasing soon and steadily which would also point to paying your balance down asap as the best option. You're better off being ahead of the curve on paying your balance down. That said, liquidity is also expected to increase at least slightly in credit markets in the near and mid-term, so having your line limit reduced might not be as much of a threat as it would have been in recent years.

If it were me, I'd err on the side of caution and pay the HELOC down as much as possible while keeping my eye on the creditor/ my limit for future needs.