All Forum Posts by: Sarah M.

Hi There! I am a small business owner 3 years in business. I want to purchase my own home but the banks will not yet approve me for more than a $275,000 home loan because I have only 2 years business tax returns. I currently pay $5000 per month to rent the home I run my business out of and would rather be paying a mortgage. I have excellent credit, no debt and am new to private lending. Any advice  on which private lenders to contact? I can put almost $40,000 down. Thanks! Sarah

Hi! Thanks for the replies. I am new this and don't always know what exactly I am asking for - so thank you for asking the questions I need to! The appraisal is for a home I want to buy from one relative, for another relative (my mom). My mom is currently living in the house. I just want to know what it's worth to open up the conversation. It's not for financing - yet... its just for me. I will be taking a loan out to buy it, so I will probably have to get another one then.

I think I will also need an inspection, too - so I know what type repairs might be needed down the line. I hope this helps. Thanks!

Hello! Looking for an appraiser in Minneapolis for a single family home. Would rather ask you smart people than Yelp! ;)

Originally posted by @Tim Swierczek:

@Sarah M. It is correct for conventional loans you must have 6 months of ownership.  @Michael Ablan is correct in stating the terms are worse for commercial but with rates rising most the commercial lenders I work with are lower than what you would see on Conventional cash out investment loan that is that small.  Conventional loans price higher for each of those items and a loan amount below 100K would jack the terms on conventional.  I would suspect you would see lower rates on a commercial with similar fees the biggest difference is that you would be subject to a 5-year rate adjustment and a 5 or 10-year balloon.  I'd be happy to discuss it further if you'd like to PM me.

 What about Deferred Financing? Is that something I can do?

Originally posted by @Michael Ablan:

@Sarah M. - Nice purchase!  How long have you owned it?  Residential lenders require a 6 month seasoning period before you can pull out anything more than your initial investment ($60k).  Commercial lenders can do whatever they want, but the terms aren't as nice.

Check with your local banks first and see what they can offer.  You might have a rock star or two in your own back yard.

 Hi Micheal - we closed in Nov... so just a month, really. Good advice! I'll look into local banks!

Originally posted by @John Woodrich:

Contact @Tim Swierczek, he is a local mortgage broker who also invests in the area.  He can discuss your options.

 Thanks! I reached out!

Hello! Thanks to you guys I just purchased a rental property in Minnesota! It's a SFR bought for 60k cash. It appraised for 90k. My questions are: 1 - What are my options to get the money out to do the BURRRR method? 2 - Can anyone recommend a bank (local or national) or lender that would be able do the financing? Thanks so much! Couldn't have made this happen without Bigger Pockets!

I'm not sure how to reply to people individually, but thank you all so much for your suggestions. I put some calls out - I'll report back!

Hi - I'm very new here. I'm closing on a house in Minnesota on Nov 30 and need home owner's insurance. I am buying the house in cash through a Minnesota LLC and want to put the policy under the LLC only. I don't want my name on it at all. I know this can be done - but I don't know who does it, and does it fast - as I need it next week. Can anyone offer suggestions? Thanks so much!

Thanks everyone for the fast responses! I have only read one book and watched one webinar on Bigger Pockets thus far and have a LOT of educating to do! It would be a pass through LLC. And if I'm reading correctly - the LLC really doesnt affect the taxes. SO - next question - maybe for another post - What kind of tax benefits should I expect or be looking for by owning a rental property? I've read about new tax laws and don't understand any of it. I am 1099 myself for my career, so not sure if that affects anything?