All Forum Posts by: Mindy Jensen

A co-signer's credit score will allow you to qualify for the loan if your score can't. 

When I spoke with my lender, he said 620 is the lowest he will go, and your rate improves the higher your score is. So with your score in the mid 600's, a co-signer with a higher credit score will most likely help you get a better rate. 

Just remember, a co-signer is just as responsible for the loan as you are, and it shows up on their credit report as being their loan as well.

Do you have a specific property in mind? Start with the credit unions and local banks that may do portfolio lending and go from there. 

I am following this topic because we are having a difficult time finding financing for a property that could end up seller financing as well. 

My property in question is a 4-plex. The owner has had it since the 70's, and just doesn't want it anymore. My husband has 12 years in the same job, but just switched to 1099 rather than w2 so a traditional mortgage isn't an option.

We spoke with a commercial lender at our local credit union, and were told the rate is typically higher on the commercial side, and a shorter amortization length before a balloon payment or refinance. 

They use a combination of historical rents from the property as well as our personal income, and w-2 vs. 1099 doesn't make much difference. The credit union also wants a 25% down payment rather than the typical 20% on a personal loan. There IS a prepayment penalty on a commercial loan, typically 3% for the first year, 2% for the next, etc. Most closing costs are the same as the residential side, except the appraisal which can be 2-3 times the cost of the residential appraisal.

If you don't have a relationship with a credit union already, I would suggest making an appointment and spelling everything out. I hear rave reviews of credit unions for investors.

I'm sorry I don't have any seller-financing advice.

Thanks @Dustin Hawksand @Account Closed! 

This is a tough situation, @P. Martin. My husband and I are in a similar situation, but with a higher credit score. He has had the same job for the last 12 years, but circumstances changed and he is now a 1099 employee rather than a w-2. Every bank we have talked to has said the same thing, they need two years of tax returns from 1099 employment before they will even look at giving you a loan. We have extremely high credit scores, mid-800's and have used the same lender for the last 7 transactions and they cannot bend.

There are a few options I can think of: A co-signer, a credit union, family/friends lending you the money until you have the two years of tax returns.

If none of this is an option, I think you should concentrate on raising your credit score while you wait the two years. Have you gotten a copy of your credit report in the last 365 days? You are entitled to one every year, and it is good practice to check it out every year. You can make sure there isn't any incorrect information on the report that could be negatively effecting your score. 

Do you have a high debt-to-credit ratio? If so, concentrate on lowering those outstanding balances. Do you pay off your credit cards every month? Try having a small balance for a couple of months, and make sure you make the payment on time every month. That can knock your score, too.

Good luck!

Hey @Brent Virkus! Welcome to BiggerPockets. Start listening to the podcasts, read the blogs and browse the forums.

Your willingness to share your knowledge is exactly what this community is all about!

@Darrin Danielson welcome to BiggerPockets. I just listened to Podcast #121 with the Syrios Brothers, and they have a pretty good business model going. They are in Kansas City, MO. Not sure how your market relates to theirs but I love their story.

Is it possible to partner with the property management companies?

Brandon Turner wrote a really awesome post about BRRRR investing. Buy, Rehab, Rent, Refinance, Repeat. I keep recommending this article because it is such a great way to get started.

Do you have any family or friends that could lend you the money to get started? Is a HELOC a possibility? Do you have any possible properties yet?

I always have the tenant pay. If I were considering a property where everything was on one meter, I would see if the units could be remetered (Is that a word?) so the tenants could be billed separately. When the tenant doesn't have to pay, they tend to not conserve the resource and bills are higher.

What is standard practice in your area? Do most landlords have the tenant pay, or do most landlords pay? I would assume most tenants pay it themselves but would prefer to have it paid for them. Could you bump up the rent if you pay the utilities?

Brandon Turner was talking about a new trend in his area where some tenants don't make the utility payments, but still pay rent. The city is forcing owners to keep the utilities in their name to ensure payment. He then has to bill his tenant. I can see this moving to a more widespread policy.

Yesterday afternoon, BiggerPockets signed up our 300,000th member! Just 9 short months ago, we were only 200,000. Exponential growth is fascinating to watch!

Can we be at 400,000 by the end of 2015? Seems do-able. 

It took me so long to write this up, that we are actually almost up to 301,000 members today, and it is only midday!

This is such an exciting accomplishment, and it happened on my very first day. Coincidence? Hmmm...

Congratulations to the whole BiggerPockets staff, and thank you all for helping this awesome community grow!

So much great information. Thank you! My neighbor doesn't feel comfortable with this level of DIY, so she has found a company that will do it and guarantees the work. They are a nationwide company that has been in business for a long time (I can't remember if it's 40 or 75 years) and they have invented their own system with sump/backup sumps. She feels she is in good hands with them. I am going to try to be onsite during the installation to check it out and hope to share.

Since you will be living with the person who is renting out your bedroom, think of all the qualities you want and do not want in a roommate. Are pets ok? Do you have them? What about smoking? 

Since you will be sharing such close proximity, you want to make sure you tell them everything that is important to you. Better to give them more information than they need, then to skip something that may be important to you and be stuck in a bad situation.

You are exempt from federal fair housing laws, so long as you rent it out yourself rather than use a PM, you can pick and choose the person who best fits with your own wants and needs, such as choosing to only allow men to apply for the room.

Good luck. I am following this topic to see what happens...