All Forum Posts by: Nnabuenyi Anigbogu

I have used retirement funds as reserves for my last 2 conventional loans so im pretty sure you should be able to use it for your refinance. If that lender does not allow it then it is time to go find another lender. Also some lenders allow you to use borrowed funds as long as you can show where the money came from and they incorporate the monthly payments resulting from the borrowed funds into your DTI.

You can also look into using bank financing for this and treat it like a value add play. There are bank products from portfolio banks that can do this. Since this is already a commercial loan (greater than 5 units) you might have more flexibility from a bank.

Nice! I did the same thing with a darker plank to the unit i live in. Makes it looks great and now that im moving out i can get higher rent. 

High Quality knee pads are a mans best friend for this. lol.

Good job though. looks great.

I am with Jake on this one. Depending on the person and personality, it might be good to manage it as an owner. I find that my best tenants are happier dealing with the owner because they have a perception that i would take better care of the property. This is area and tenant class dependent so don apply it across the board. Also it works even better when its a multi-unit where you leave in one. For the SFH rentals, families can sometimes be more pleasant when they see you as the owner as opposed to the manager.

Now if you can't handle dealing with the tenants as an owner (its not for everybody) then its might be best to just hire a PM.

It depends on what exactly you are referring to with gap funding. I have heard it used different ways.

I have used a version of gap funding where the hard money lender funds 85% of the flip (purchase + renovation) and the gap funder funds 10% of the deal. That leaves me with 5% to come from my own pocket. Some have used this method to obtain 100% financing. The key is that the gap funder is usually someone you know and have a relationship with. In my case it was someone who knew a friend of mine and that friend vouched for me.

In my opinion it is a great way to go if you have it available. It can increase your capacity to pull off certain deals.

It depends on what you want to do and where you want to do it. Hard money is more expensive and still requires significant skin in the game. For a flip you are looking at at least 10% down and possibly prefunding the draws prior to getting reimbursed. For rentals hard money can help with acquisition but you have to be sure that you can refinance that loan in 6-12 months or you can get killed with the interest.

What type of investing are you looking to do?

 Not too much. I read a few books and have been around real estate for a while (dad was an appraiser). However i am someone who learns by doing. I can read all day but if i never practice it then i might have well not read it. So i decided to jump in and learn as i go. So far it has worked out pretty well.

Thanks for all the Congrats!! It was not easy but it was worth it. Small sacrifices early in life lead to a much higher quality of living later on.

I have used lendinghome, Iron Bridge and RmacLending. I don't believe any of them used credit score to make a final decision. However RMAC did give me a lower interest rate for having a score over 720.

You can google all of them to see where they lend and if you like their criteria.

No it is not normal but its not totally unusual either. I would keep searching for other ones that do not have this requirement. There are plenty of them out there that will loan to you as long as you meet their requirements. (Asset you are flipping is solid, reserves are in the bank, and you have some real estate experience). Some might even look at credit score (although the ones i have used did not care about that)