All Forum Posts by: Paul Higbie

I would find a local bank that is investor friendly.  By local I mean local to where the property that you wish to purchase is located.  A bank like this will frequently work with you to find a solution once you have walked them through what you are attempting to do.

This is not a quick answer to your need but it will provide you with a long-term solution and help you grow your business.  A local lender, a hard money lender and a mortgage lender should all be part of your lending group.

This can be a good strategy but also risky unless you have experience.  Having a partner that will let you learn is a way to mitigate risks.  Do you have financing?  Have you targeted land in any specific areas yet?

Jesse,

In order to use FHA financing to purchase a 4-plex the borrower must live in one of the units. The other 3 can be rentals. If the borrower is not going to live in one of the units then the only option for financing with 30 year money is conventional.

Paul.

Chris,

Remember that getting a HELOC on your primary residence now means that you are putting your HOME at risk for your investing. I'm not saying this is wrong, just understand the risks.

Paul.

Key thing for them to remember is that they are putting their home at risk for investing.  May or may not be a good thing but having that perspective might give one pause.....

HML lenders in this area, Kansas City, will lend with $0 down from the borrower, IF the loan meets their LTV guidelines. Stay below 65% - 70% LTV based on the after-repaired value (ARV) of the property and the HML will lend 100%. If the project is over that then the borrower will bring funds to the project.

Also, important to remember that building a relationship with the lender is extremely important. Private lending or HML is not about a "program" and rigid guidelines. Relationship, experience and results are key.

• 12%
• 4 points
• 70% ARV
• Kansas City area
• Small commercial included

Moving the assets into an LLC does not change your payment history. The issue is not the ownership of the asset it is the late payments and those are on your personal credit. The best way to improve your credit score is to pay the loans on time. And over time your score will recover.

Reach out to Chris Dawson. You will find him here on BP and he is a one stop shop for investors.