All Forum Posts by: Sanat Bhandari

@Rigo V. Most people borrow cash from a private/hard money lender to purchase properties all-cash

From a refi standpoint, most DSCR lenders are looking at the scope of improvements to the property to determine your actual cost basis in the property. As long as the appraisal actually comes in substantially higher than your cost basis, you should be able to recoup your cost basis + a little bit more. Keep in mind that for a DSCR loan, the DSCR is what kills the deal and not LTV

Only DSCR lenders and some local banks/non-QM would allow you to refinance right after 6 months. Fannie/Freddie just raised the timeline for a cash-out refi to 12 months from 6. That is, unless you go for a rate-and-term refi in which case you'd most likely be leaving money in the deal

@Miguel Nambo Couple issues with this: 

- You can only have one FHA loan in your name (with certain exceptions)

- Lenders verify the source of funds and you can't use a loan as downpayment (again, with certain exceptions, with HELOC being the biggest one)

- FHA loan is secured by a piece of real estate so you won't be able to get it unless you have a $7,000 property

@Devin Fakner 80-85% will be a bit tough to execute since most lenders have tightened up on cash-out refinances. 75% is the standard across the board, especially from a DSCR standpoint

Your best bet may be a local bank/credit union that may allow you to pull out most of your cash in the deal. Feel free to PM me 

@Benjamin Nelson Yes, that is doable and many investors use this strategy to build their portfolio

Have a solid, executable plan for taking on such a venture

Depending on where you get your loan from, some lenders may have a seasoning requirement for downpayment funds. It doesn't necessarily apply to HELOC funds since it is secured debt but check with your lender for the same

@David Saunders It's common for seasoned investors to execute 100% seller financed (or just financed) deals however, ask yourself this, why would a seller let you as a buyer do it? What's their motivation? 

Real estate is all about risk mitigation so as long as you have a solid case for why should a seller do this arrangement for you (whether it be you're seasoned, it helps them out, etc), it's possible

Is it advisable? Not unless you know what you're doing since you can easily lose your shirt if things were to go sideways

@Jed Leviner Ask around a local bank/credit union for the same. They might be able to help you get a HELOC with a low-ish rate

I'd recommend checking in with a mortgage broker as well in case they have access to HELOC loan products

@Kerry Baird I personally use Chase Ink and a CLOC (commercial line of credit) established with a credit union for business banking needs. Looking to get an amex blue business plus since I've heard good things about it as well

I've had best experiences with local banks for business banking due to much better customer service and customized lending terms

@Francisco Ruiz You got a couple options here: 

- CLOC (Commercial Line of Credit) 

- HEL/CEL (Commercial Equity Loan)

- A lien investor willing to give you a loan for the desired amount at a certain rate (uncommon but I've seen it happen) 

Your best bet would be a local bank/credit union that can provide you with a customized portfolio product. I know some local banks can cross-collateralize the seconds on your portfolio so they're out there, you just need to ask around

@Flavia Pires That is certainly possible and as the other poster here said, the property doesn't have to be >100 miles apart for you to be able to get a second home mortgage

However, with the recent price adjustments, keep in mind that the pricing and fee structure on second home mortgages has gotten prohibitively high. It can still work, just that Fannie/Freddie have closed the plug on people trying to buy AirBnb's with 10% down under the pretense of second home

@Ryan Hickman Partner up with another investor so that they bring in downpayment while you bring in the deal

Another ways could be a lease option or seller financing. There are many ways to skin the cat, so to speak. It all depends on the deal and the situation