All Forum Posts by: Marty Johnston

  I recommend Orchard Funding as well. Best of luck, Sheryl

@Sheryl Griffin, if you're interested, send me a PM, I'd love to hear from you!

Marty

@David Greene, Send me a PM, I don't want to break any forum rules!

Marty

@Paul Wakim, Welcome to BP! 

As Patti stated above, if you're qualified from Wells Fargo, a traditional bank, you will most likely qualify for most other lending options. Not all, but many. Traditional bank loans typically offer the best rates and terms, however, due to all the paperwork and vetting required, they are not always the best option for investors for reasons that you express in your post. They can be slow, very slow. 60 days is not uncommon for bank-type loans.

If you're interested in moving quicker, you will want to talk with a commercial lender or broker. They will be able to offer you faster closing options, but the rates may not be quite as good as what Wells Fargo is offering. However, you didn't state your rates and terms above so I can't say for certain. In the terms that Wells Fargo offered, you said "My mortgage lender knows that I will be buying to renovate and flip and has offered me a loan that covers both the home mortgage and the renovations for 1 flat fee." Does your 1 flat fee mean just your down payment? I'm assuming that isn't closing costs, but what is the LTV that they have offered you for this 3-property deal?

If you're interested in learning more about how commercial lenders work, send me a PM. I'd be happy to chat with you about the process and help educate you on the differences between bank-type loans, stated, HML etc. and what you can expect from each scenario. Understand this though, with a commercial loan, you cannot occupy the property as your residence (commercial retail of course is acceptable). So your options will be a little limited there.

Good luck!

Marty J

Just to reiterate what others have already said; although Craigslist may have some tire kickers, it is certainly the most unanimously used free advertising site out there. If exposure is what you're looking for, you may want to ignore your personal reasoning against using it.

And yes, Christmas and the New Years is a killer for a lot of people. I've noticed with business especially, most people have completely ceased communicating - it's the time most people are putting all things aside. Who knows, maybe there is an application from those 15 waiting to be sent until the New Year.

Give it another go this week.

@Shay Allen, Send me a PM. I am a commercial mortgage broker and would be more than happy to discuss your options further!

 Oscar, you sound like you're off to a great start financially. There are some ways to work with the low capital... Send me a PM and we can talk options. Im just north of you in Milwaukee area. Id be happy to talk with you!

Marty

I agree with George for the most part. Credit is certainly less of a issue with HML's. However, don't assume it is not considered. With all the lenders we work with, you will not be able to obtain certain programs with credit scores below certain minimums. This will vary depending on the loan type, loan program, and the particular lender of course.

Also note that while your credit May not be a deal breaker per se, most of our lenders will adjust their rates based on a borrowers FICO accordingly, so there are definitely still benefits to having solid credit. My point isn't to discourage you, but rather to encourage you to pursue what you already with the tax lien. It could certainly save you money when your next need for financing comes along.

Your initial capital for a down payment and mortgage reserves will be huge for you in getting a HM loan, you shouldn't have a problem finding one. there are programs also got period with terrible credit, worse then yours I'd imagine, and our lenders simply request Ann explanation of your poor credit. With

based on what you told us here, you would have no problem working with these lenders. I wish you luck! Feel free to contact me with any questions you might have.

Marty

@Shay Allen, welcome to the world of commercial multi's! As already stated, be prepared to pay a premium. 30k will only get you a down payment for a 100-115k complex. Be prepared for closing costs - Lender fee 1-3 pts (possibly broker fee if you use a broker 1-3pts) Insurance, and an appraisal (@3k for commercial). If you do the math, for a 1.5MM the numbers ad up. As you can see, liquidity is much more necessary in commercial than residential when it comes to fees and closing costs.

As you stated above, finding an experienced partner in the type of investment you're interested in is key, and will certainly help you get decent financing with not only better rates and terms, but will help lower your risk as well. It's important to figure out now what value you can bring to an experienced investor, and look for an equity partner on the deal. That's what we tend to recommend anyways.

ihope this helps! And wish you luck

Marty

Oscar, I am a Commercial Mortgage Broker, we offer the type of loan you're looking for. PM me if interested.

Marty