All Forum Posts by: Paul Cordero

Based on Kenneth's original post, he is looking for long term type mortgages for rentals. Why would you use private or hard money for this strategy? It doesn't make sense to pay exorbitant interest rates on private/hard money for a long term solution.

Kenneth, are you looking for rentals that you have to put money into for repairs that won't qualify for conventional financing, or are you looking for quick funding?

Why would it make sense for an investor to give a discount on the collateral to someone borrowing from them to purchase it?

I believe FNMA guidelines will allow for 10 loans.

Ed, is your loan a High Balance? If so, this may be the reason that FNMA has not loaded the Market to Market Value to WF.

Connect with me for more info.

This is not true Ben. Sounds like you may had a WF rep that didn't know what they were talking about.

First off you need a portfolio lender.

Our Private Bank requires at least a $1mm relationship, but they approve complex deals that make sense (like yours) once you have that relationship. The only problem is that the deals your are looking to get financed are smaller than most mortgage bankers/loan officers would like to spend their time on in my opinion.

Not entirely true John, but I see the angle you are telling Kristine to try. I work for a big bank and we have portfolio lending (we call it non-conforming for any loan amount) available for deals like this. The rate is usually about half a percent higher for investment property.

Kristine - Investment property is an investment property. The vacation rental part does not usually present any additional risk to the lender.

Usually your other addresses/properties will come up on a search during underwriting for which you will have to prove that you own the home free and clear, plus they will want to know your intention with the new home. If you are saying that you are downsizing, then you could purchase the new home as your new primary residence or as a 2nd home and then rent out your current primary residence without any risk to the lender.

Kenneth,

Why are you needing a private mortgage over a conventional product?

Any investor would like to know the risk involved with lending you money. My first question reading your letter is, what is keeping you from getting a long term conventional mortgage?