All Forum Posts by: Andrew Syrios
Andrew Syrios has started 74 posts and replied 10135 times.
Post: Refinancing low credit score
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
If you have a high credit score to begin with that's unlikely to be the reason to get declined, especially if you explain the strategy to the loan officer who will bring the loan proposal to committee (and even more especially if you note you will use the refinance to pay off the credit card).
Post: Keep and refi or Sell SFH in Memphis
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
I'm usually in favor or holding rentals whenever possible, but if you're going to have to leave money into it after refinance and also it will have a negative cash flow, I would lean toward selling.
Post: How to Invest in a Property - No Money Down
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
Quote from @Hannah Howe:
Quote from @Andrew Syrios:
Quote from @Hannah Howe:
Quote from @Andrew Syrios:
No, no bank will lend at appraised value upon purchase. They will only lend on your costs up front and usually for at least 6 months after purchasing. They also won't ever lend more because of it's cash flow. They might restrict how much they lend to you if the property doesn't cash flow well enough. But the appraised value is what they will lend on based on comps (houses) or cap rate (apartments). But again, up front they will only lend based on your purchase price/cost to rehab (unless the appraisal is lower or DSCR isn't enough, in which case they would lend even less).
That is good to know @Andrew Syrios. I was wondering if traditional banks would lend rehab costs on top of purchase price. Thank you for the explanation. Why would they lend for at least 6 months after purchasing? Is that for the time the property is in rehab?
They will (at least many will) but they will escrow the rehab portion of the loan and only release it as you provide invoices and proof the work was done.
Thank you for explaining this to me.
Sure thing Hannah, good luck!
Post: How to Invest in a Property - No Money Down
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
Quote from @Hannah Howe:
Quote from @Andrew Syrios:
No, no bank will lend at appraised value upon purchase. They will only lend on your costs up front and usually for at least 6 months after purchasing. They also won't ever lend more because of it's cash flow. They might restrict how much they lend to you if the property doesn't cash flow well enough. But the appraised value is what they will lend on based on comps (houses) or cap rate (apartments). But again, up front they will only lend based on your purchase price/cost to rehab (unless the appraisal is lower or DSCR isn't enough, in which case they would lend even less).
That is good to know @Andrew Syrios. I was wondering if traditional banks would lend rehab costs on top of purchase price. Thank you for the explanation. Why would they lend for at least 6 months after purchasing? Is that for the time the property is in rehab?
They will (at least many will) but they will escrow the rehab portion of the loan and only release it as you provide invoices and proof the work was done.
Post: BRRRR vs 20% down with declining housing prices
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
You need a better deal in a declining market, although I think for the most part the declines are exaggerated. The nice part is it's much easier to find deals in a softer market whereas it was really, really tough just a few months ago.
Post: How to Invest in a Property - No Money Down
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
No, no bank will lend at appraised value upon purchase. They will only lend on your costs up front and usually for at least 6 months after purchasing. They also won't ever lend more because of it's cash flow. They might restrict how much they lend to you if the property doesn't cash flow well enough. But the appraised value is what they will lend on based on comps (houses) or cap rate (apartments). But again, up front they will only lend based on your purchase price/cost to rehab (unless the appraisal is lower or DSCR isn't enough, in which case they would lend even less).
Post: Out of State Investing for Californians?
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
Quote from @Christine I.:
@Andrew Syrios and @Kim Tucker Thank you both for great advice in exercising caution when investing out of state. I'm currently exploring Ohio and realizing I may not be cut out for long distance RE investment. I want to see with my own eyes.
Sure thing Christine and best of luck investing where ever you decide to go!
Post: Just picked up a new property!
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
Congrats Crisselda!
Post: How are you funding deals?
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
Almost all with private lenders and then refinancing with banks. We're still getting decent rates from local banks (around 4.75 - 5.25%) which we can still make these properties work with especially as rents increase. We'll see if that continues.
Post: student housing the good, the bad and the ugly
- Residential Real Estate Investor
- Kansas City, MO
- Posts 10,502
- Votes 5,099
My dad built his business on student housing around the University of Oregon. I wrote two pieces for BP on it you might find helpful: