All Forum Posts by: Sanat Bhandari

@Eddie Torres I say speak with the commercial lending division at a local bank/credit union for the same. 

They could potentially cross-collateralize against your other assets without taking your DTI into consideration. I know of some people who've used their vehicles as collaterals against LOCs that are used for construction projects like this

Something like this is definitely up their alley. Ask around for an investor-friendly local lender and I'm sure you'll find someone willing to extend the funds for the same with flexible collateral options

@Jonathan McEntee I've found good success using the following (in no particular order):

- MLS >60 day and expired listings

- City demolition lists

- Cold calling property owner lists from the county

- Networking with as many people as possible 

@Riley Dollen I'll reach out to you with my CPAs contact info. He is a sharp guy who is familiar with real estate taxation

@Keivan Cross Louisville is a smoking hot market right now. One of my business partners is a commercial broker out there and focuses primarily on multifamily and industrial. I'd be more than happy to share his contact info with you

@Joshua Hindberg I agree with other replies here, this would be a classic DSCR rate/term refi. Your best bet would be to find a local mortgage broker who specializes in DSCR loans to help you out with this situation

DSCR loans are primarily concerned with the cash-flow from the property and not your income. As long as the property can 'service its debt', you should be good to go

@Matt Laird Generally speaking, for section 8, you would want to focus on C+ neighborhoods where you'll get the best bang for your buck. They're not as rough as <C neighborhoods and can be had for good value

Walking score may or may not be important for the same. If it is a high walking score, you may attract tenants without access to reliable transportation but from my experience, most people in the midwestern/southern cities have access to some form of transportation. If this was in a coastal market, that may make a huge difference

Having good quality and clean housing is the primary goal of the section 8 program. From what I have seen, section 8 inspectors focus more on hazard/safety items than cosmetic issues in the property

@John Boutros The best way to find equity partners would be to head over to your local REIA meeting or the commercial investing forum here on BP. There's quite a few guys that do MHP investing and may be willing to partner up on the same

Since MHP isn't as common as residential/multifamily investing, you might have to knock on doors to ask about the same. Boat loads of networking is your best route here 

@Trevor Barrett This sounds like a prime (no pun intended) candidate for a cash-out refinance. You can use the proceeds from the same to buy out your partner and hold the title in your name with the loan under your separate LLC from the one you have

@Erik Estrada is an LA broker and could help out

@George Duchatelier The best way to end up with no money out of pocket in a project would be where you BRRRR it and recoup all your costs during the refinance

Most common fix-n-flip programs require 20% down on the purchase price with the loan amount covering the rehab for the same. Since the property is fairly low cost, I'd suggest going to your credit union/local bank and asking for a construction loan to acquire and rehab the same

You'll most likely be drawing the funds for construction loan on a draw with payment being wired after the inspection being done for every phase. You should be paying interest on the funds as they're being used

After the rehab is done, your lender should be able to do a permanent refi to pay off the construction loan and potentially recoup your downpayment amount (credit unions/local banks would be the best for this since they can be more flexible with cashing out)

@Marquel Butler Not a lot of options here unless you qualify for DPA (downpayment assistance), local housing assistance grant, or gift funds from a close family member

Keep in mind though that with a DPA or grant, they usually have additional restrictions on top of FHA restrictions, namely a longer period of residence (some grants require habitation for 2 years) or repayment (if it is not a grant) at a potentially higher rate than FHA loan. Inclusion of these programs make FHA lending more cumbersome than it already is (plan for 45 day close instead of 30 day close instead)

If you are using gift funds, then they have to be seasoned in their account and come with a letter stating that no repayment is expected