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All Forum Posts by: Richard Advani

Richard Advani has started 0 posts and replied 25 times.

Post: Indy duplex refinance lender recommendations

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Doris Jin Huang:

We are looking to refinance a newly-renovated duplex in Indianapolis. Could anyone recommend a lender whom they had good experience with? Preferably with ARM options. Thanks!


 I can certainly be of assistance. I have closed close to 5k investment loan transactions and have over 20 rentals myself. That being said, we can only offer fixed rate products for an investors, no ARMS. Happy to share some information with you if you would like.

Feel free to google my name for additional information. Cheers!

Post: How to get around DTI limitations?

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Michael Smythies:

Thank you for your response Chris. I probably should have been more specific with my question. I was framing this question more so in the context of people with streams of income coming from rental properties. 


How is it that some investors are able to afford having dozens of rental properties? Presumably they're bypassing DTI restrictions in some capacity.


Hey Michael. Actually many lenders like myself offer DSCR loans which do not require income documentation to qualify and are based on the property cash flow. Conventional loans which we also offer are still the least expensive means of obtaining residential real estate financing. On Average this DSCR loans are about 1% higher in rate that the conventional deals.

Let me know if you want further information.

Post: First rental property

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Dan Patella:
Quote from @Richard Advani:

Looks like a solid first purchase. Anything on the horizon for 2022?


Hey Richard, looking to acquire my first BRRR deal in the October - December time frame so gearing up for that.


 Awesome. I have some connections with new construction in the New Braunfels area - opposite of your strategy of course but its a good idea to understand all of the available options. Let me know if you want me to send you some info or have lending related questions I can answer. I have over 20 rentals myself. Cheers!

Post: Hard Time to rent my property

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Greg M.:

My first impression is there are problems with the listing and the unit itself.

Every single picture except the last four have a giant MYND MANAGEMENT watermark in the center. Are they really that worried about someone stealing their pictures? This watermark needs to be MUCH smaller and located in an area that isn't blocking the main feature of the picture.

The pictures themselves I do not like. Every one was taken at an odd angle. They are distorted and quite honestly, they kind of make me feel dizzy when looking at them. 

There are multiple pictures of what appears to be the same room, but I'm not sure. The pictures need to be labeled. Master Bedroom, Bedroom #2, Powder Room, etc. 

The layout pics are interesting. I love that they say there is a back patio. That 2'x2' concrete slab outside the door is not a patio. That's an insult. And the front door having a porch is a stretch. 

Did the painters run out of paint before getting to the garage? It's a shame to have a house that looks completely done and fail to spend a few dollars to make something look much nicer. Maybe you're going to be a cheap landlord is my first thought. 

The yard looks to be a good size, but with the funky pictures I can't tell. The renter has kids, let them know how big the yard is.

The sod job in the back looks like it was done very poorly. I can tell they're different heights from the pics. Makes me wonder what other poor quality things are in the house.

You have dirt, two trees, and some debris in the back yard. At the very least the debris could have been picked up before the pictures.

The aerial picture shows that the neighborhood is still being build with lots of just started homes around it. This says dirt, noise, and danger to parents.

Where exactly is the home? San Antonio is close in size to Los Angeles. If I advertised a home as being in Los Angeles and gave an address, no one would have any idea where it was without taking the time to look up the address. That's true even if I mention it is close to a golf course. Give me a better indication of where it is. Something like, "located in the historic XYZ district, walking distance from the Alamo, and just 3 miles from the San Antonio International Airport". 

Is there any front yard? I don't see any pics of it if there is one. The further set back from the street, the more palatable to a person with young children.

I know it's not something that you can change, but having 3 bedrooms share one bathroom is not a feature. Right now it reads to me as 3 bedroom and an office and these are renting much lower in price. 

This is a house to be rented to a family. Schools, restaurants, and the golf course are just minutes away from this place you state. The elementary, middle, and high schools that service this location show being rated 2/10. No one moves here for the schools. The neighborhood has a 0/100 walkability score. Governor Abbott has a higher walkability score than this. Transit score of 0/100. Bike score of 22/100. I honestly don't believe that I've ever seen such low scores. Absolute killers for a family rental. 

Your rental terms are a complete turnoff. Maybe they are standard in your area, but in mine they'd be a deal killer. You want a $49 application fee per adult + a $199 move-in fee + a 1% monthly admin fee + $199 pet move-in fee + pet rent + deposit + HOA fees + renters insurance. You talk about fines and federal occupancy guidelines and make it clear if there is an issue you're not fixing it before move-in. The listing ends with "We look forward to connecting with you!". Well, how about your eyes connect with my middle finger, because there is no way in hell I'd ever contact you with this type listing.

On top of this, there are a bunch of homes for rent in your area that look near identical to yours. I'm guessing that you didn't purchase any upgrades when they built the home. Nothing sets it apart. And you have carpet in kids bedrooms! 

You may get $1895 for it if you wait long enough, but if it were mine, I'd move it to $1700 and get rid of the $500 move-in bonus and all the application / move-in / pet fees. Get it rented and let the area settle and you can increase the rent at renewal. 


 Great Response!!

Post: Question about Potential Renter and Cash Out Refinance

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Charlie Lockwood:

I was in a similar position about 18 months ago. I found a local credit union. Told the lender I wanted to cash out refi in order to buy another property and rent out the first. The lender made this work. About six weeks after I did the cash out refi, I found a second prop.  

 I think the saving grace was we did the cash out refi BEFORE we found our second property. On top of that, the second properties previous owners did a rent back from us for six months. This allowed us to stay in the first property for a full 8 months after we did the cash-out refi. 

Prior to all this, I did call a few Big Banks and explained what I wanted to do. They all made it seem like I was nutz and that the cash-out refi to buy another house was not possible. So I took the advice of some peeps on BP...I found a local credit union that made it happen. If you're interested, I can send you the lenders email. I'm in NV so no guarantees this lender will loan in your state. 

Hope this helps, 


This is definitely something doable by any lender, most LO's dont deal with investors though so they dont nderstand the Ins and outs of the guidelines as they relate to investors. We consistently employ the strategy you used above for our clients and given our ability to use projected rental income on the new purchase (whether rented out or not) qualifying can be pretty easy.

Post: Hard Time to rent my property

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Nithya D.:

I bought a house SAn Antonio.Its a brand new community with lot of investor homes.My rental  is through a property management company.I have reduced rent 3 times .My zillow contact is 43 totally but only 2 showings so far.My PM suggests to reduce further.I wont have any cash flow with that low rent.what do you suggest.I want to rent it out asap.


 Unfortunately as others have stated it is better to take a reduction in rent vs. staying vacant. Every vacant month amounts to $150+- a month less in rent for the year so consider making a considerable reduction. Where did you get your initial estimated rent amount when you calculated your estimated cash flow and return?

Post: Thoughts on investing out of state?

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Brandon Gamblin:
Quote from @Richard Advani:

I have been investing out of state for over 14 years. I live in CA and own properties in various markets across the country. While I do have a few rental investments in CA, investing out of state has allowed me to invest in strategic growth markets that were out of range in california. Positive cash flow and lower cost of entry is the main reason most investors venture out of state. That being said, its important not to generalize all out of state investments in to a single bucket as each market offers its own set of pros and cons. Invest wisely.



How does the market in California where you do hold those rental investments, compare and contrast with those out of state strategic growth markets you’re referring to?

And what do you mean by “strategic growth markets”?







My CA properties are short term rentals, the ROI and cash flow on a long term rent would not make them viable investments. I also self manage the STR as well so I save on the high management fees typically associated with using a STR management company.

In terms of strategic markets - I mean markets that have an inherent growth path based on key metrics like employment growth, population growth, tax benefits, etc. I.E. Austin Texas, Palm Coast FL, Raleigh NC.

Post: Getting preapproved for a rental after purchasing primary

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Nader Hachem:
Quote from @Steven Foster Wilson:
Quote from @Nader Hachem:

Hey all, 

I closed on my primary back in June and I’m looking to move into buying my first rental. My credit score is great right now, just opened a credit card earlier this week and I know there’s a 14 period where I could pull credit multiple times without harming my credit.

Being in this position, I want to get preapproved for the rental but not sure if I should wait out a bit 

Anything I should be aware of before?


 While you are waiting I would just call lenders and compare rates/terms. That way it will give you more options. 


 Are they able to provide closing costs/interest rates without pulling credit? I feel like I usually get the answer that they need my total information and credit report


 Any lender should be able to provide quotes based on an estimated score. Lenders that require a credit check and application for that remind me of buying a used car. I would stay away from those types of lenders at all costs. The quote is provided on the understanding that your credit score needs to be at a certain level for the quote to be accurate and valid.  Also, I don't agree regarding the comment that you should call and get quotes from a bunch of lenders right now. That is not conducive to your time or the lenders given that rates change daily and a quote you get today wont be valid in a day let alone 3-6 months when you want to purchase. It is a good idea to call 1 -2 lenders to get a rough idea of rates but the rate shopping really beings when you have the ability to lock the rate - I.E. a contract in hand.

I am happy to provide you with a current rate quote, no credit check or application needed. Feel free to DM me.

Post: Getting preapproved for a rental after purchasing primary

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15
Quote from @Nader Hachem:

Hey all, 

I closed on my primary back in June and I’m looking to move into buying my first rental. My credit score is great right now, just opened a credit card earlier this week and I know there’s a 14 period where I could pull credit multiple times without harming my credit.

Being in this position, I want to get preapproved for the rental but not sure if I should wait out a bit 

Anything I should be aware of before?


 Hey Nader,


Congratulations on the new primary home. Generally you should have no issue qualifying for a rental at this point assuming your general qualification criteria are about the same. We have the ability to use 75% of the projected rental income to offset the liability of the new acquisition So you should be pretty wide open. Where are you looking at purchasing? Feel free to DM me for any further information, I have over 20 rentals across the country myself and specialize in lending to investors.

Post: Are these normal clauses in a Property Management Agreement?

Richard AdvaniPosted
  • Lender
  • Southern California
  • Posts 25
  • Votes 15

Yes very common. Nothing out of the ordinary here.