All Forum Posts by: Neil Aggarwal

 It is good that you need the money for expansion.  If you think you can handle it, leverage can help you expand your reach.  I prefer not to sell assets to raise money if you can cash-out and keep the assets.

Its very simple:  Just ask.  I find people respond well to just being direct with them.

You need to find a local realtor that works with investors that are doing deals like yours.  They should be able to work with you on the proper focus.  If your realtor is not actively helping you, find someone that will.

Since you want to use private lenders, make contact with several of them to see what their criteria is on your finances and the property you intend to buy.

Then, look for a property that matches your needs and their requirements.  Put a contract with a termination option and submit it to one or more of your lenders.

I think we need to understand why you want to do cash-outs.  What do you need the money for? If you don't need the money, don't borrow it.  If you need the money, borrow as much as you need.  Let everything else figure itself out.

Most lenders will not give you money up-front for renovations.  They will typically have a schedule of milestones for the rehab.  They will give you money for the milestone after you complete it and they approve it. In other words, you are going to put up the money first and get reimbursed for it after.

If you are talking about taking an investor loan to purchase the property and then later moving into it, I think you are taking some chances.

Investor loans do not require all the paperwork required by the Dodd-Frank rules on homeowner loans.  The authorities might not like that you tried to do an end-run around those requirements.

It might be unlikely, but what are you going to do if the bank calls the loan? Are you going to be able to come up with another loan to pay them off?  How long will you have to get that in place?

If you buy the property as an investment, your insurance will reflect it is not your primary residence.  If you move in, they might cancel your policy.  Then you have another scramble.

If you are having trouble getting a bank loan, you can also look into private lenders in your area.  They typically have higher interest rates but many will make a loan based on the value in the property.

You are correct. Banks would typically like to see 2 years of rental income before they accept the property's income in their calculations.

Another option is to look at private lenders in your area.  They typically are higher rate than banks, but their qualifications are lower and they might give you an option to acquire more properties quickly.

You may also take a look at private lenders in your area. They will give loans when banks start turning you down. They are higher interest rate than banks but you will still have ROI if your deal is right.