All Forum Posts by: George Despotopoulos

It shouldn't be counted if there's a $0 balance.

@David Stevens - How many units in the multifamily?  

Wells Fargo is giving you a 30 yr fixed, at 5.875% and at a loan amount of $25K?

Definitely do that over paying cash. I would check to make sure you know what the prepayment penalty is on it.  

If WF is offering that, I'm sure other banks in the area would too, see if you can get a lower rate, it may be a little high for conventional, but we don't know your credit standing. It also may be a compensating factor for lending at such a low amount. 

Hey @Brett Robinson - like others have mentioned there are portfolio lenders than can help you but also non-bank lenders. Asset-based lenders exist that do not use your personal income to pre-qualify you, they base the pre-qualification, approval, an underwriting process primarily on the property's income (the property's DTI or DSCR) and then they also look at the LTV, your FICO, and the experience. The rates will be higher, since they're not using personal income, most likely in the 6% - 9.9% range depending on the various factors discuss in the previous sentence.

Happy to answer anymore questions, feel free to follow-up!

Never heard of Fund n' Grow, so I'll reserve comments on them/their process etc.. @Doug Kenney I think it's awesome that you took the plunge, giving it a shot, and writing about it for everyone to read and search.

Dealing with loan amounts under $75K is tough for lenders. Lenders want to limit their loss severity so that they are not in a position of total ruin and it's tough if the loan is even $50K-$60K. That's especially true in judicial foreclosure states where a few months in court can run legal bills alone to $20K-$40K. 

I think this where "creative financing" comes into play as well as partnering with others to go after more expensive properties, getting friends/family to pitch in, drawing from a heloc, and perhaps using available credit, like from Fund n' Grow.

@Abraham Anderson this is interesting. Are you looking to put a second lien on the property? 

I also don't know who the first lender is and what their docs look like. The borrower my need to notify them of a new member in the LLC, especially if you own a certain % and they may want you to guaranty the debt or they may even disallow it.

I don't know where you can get a loan to buy into an LLC from a commercial lender, but I'll do some digging around and update if I do.

I'm interested in seeing other responses on this from other members on the forum.

@Douglas T. - Like others have said try a different lender/broker, something isn't right here. Please update us on the outcome, there are solutions and referrals people in this forum can make to help you out. 

Hey @Matt B. can you give some more info on what you're looking to invest in (what's the purchase price, sfr, 2-4+ units, etc.). Also, do you have any DTI or FICO issues/concerns?

Hey @Charles Campbell -- I would check out what Chris said. 

But there are investment property lenders that could do 7/1 arm 30 yr. And, wile a bit more rare, there may even be straight fixed rate 30 yr options as well.

Land contracts can definitely get messy. There's personal involvement, especially with family, and sometimes that makes it a lot worse if things on the project don't go as planned. 

There are no standard terms, especially when they're giving you 100% financing. That's not really normal in the lending space. 

We would need to know the loan amount, what the project is, and if you have any experience and what it is.