All Forum Posts by: Stephanie P.

Hey guys,

So I am just getting into the real estate investing industry and am looking to purchase a few properties. I have a private money lender I can turn to for covering the down payment on the properties. What I’m looking to see is what is the best way to structure the deal to get him his money back the quickest way. He wants nothing to do with the property just wants his money to make money. I would like to just have his assistance to just jump start my portfolio. Thanks in advance for any advice!

@Stephanie P.

I use commercial real estate mortgages from small local community banks and some statewide banks and can finance it on Day 1 of the purchase, well start the process and close about 30 days later. PM me if you want some bank recommendations. I do not have to deal with "seasoning of funds" or navigating the delayed mortgage exemption.

Hi everyone! I currently have 1 single family LTR (in Maryland) under my belt under a DSCR loan due to my high debt/income ratio. I am looking to acquire 2nd property but at the moment can only qualify for a DSCR loan. I am saving up for another down payment but this is taking forever due to my high expenses at home. The lenders I found for now want atleast 25% down and 12-36 months of reserves. (Houses I am looking at cost up to $200k) I have considered Subject to but it is hard to do when I invest only out of state at the moment. My home market, (NYC) is unaffordable to invest in for me at the time. Any suggestions out there on ways to create more funding, when friends,family do not want to contribute, and home living expenses are slowing you down. (My wife is not onboard with any of this, and would be easier if she was.) So I am a bit out of ideas.

Thanks so much for the replies.

Just to clarify.  I applied for a conventional loan and got pre-approved for 1m using most of my money as downpayment.

Interests rates kept changing as the Fed raised them currently the pre-approval rate is around 8% which everyone has told me seems high.

My income was really low this year which means I'm relying on rents to cover the mortgage.

This was to buy a duplex or triplex.

I've been looking for a few months and even with a lower interest rate, say 5%, it's hard to find a property where the price of the property and the current rents of tenants work to cover a mortgage. The pre-approval will only consider 75% of the rental income. It really got me down which is why I started looking at the SB1079 law to see if I could find my first property that way.

Looking to get the BP fam opinion on this….

I currently am finishing up rehabbing 24 units and can refi out about $300k (now smaller due to rates),- since its a non agency loan, it would be at 9.5% fixed rate IO (insert face slap emoji here).

Right now I am on a fix and flip loan and its cashflowing no problem.

Should I stay, keep paying and wait for rates to cool off, or leverage up, keep my foot on the gas and try and keep buying more?

Would appreciate the input.

For some context, I have been told you can't close in an LLC in CO if you are obtaining financing, I am not sure if that is entirely accurate. Either way, I am looking for a workaround to close in an LLC but also obtain financing for Short term rentals. I myself cannot qualify for any traditional financing, but I have a long list of investors willing to put their money into deals. What I have done in the past is just take the joint title but that caused them to go through the mortgage app. process which was a chore and none of my other investors will waste their time going through that.

All that said, does anyone have any ideas on possible structures? I have looked into doing a syndication-type model but that won't work as of right now. Does anyone know of a structure where I can obtain financing without having a partner go through the loan application process?

@Ademola Dawodu

I've done plenty of DSCR loans. None of them ever showed up on my personal credit. The loan is taken out in your entity, not you personally. They do run a personal credit check, but the loan is based on the asset not you. Of course, if your credit is not good they won't lend to you or your paying a higher interest rate.

I found small local banks and credit unions are the easiest to work with. The process is much easier then a residential loan. Much less intrusive into every penny you have. I don’t have to explain why my 85 year old aunt sent me $10 for my birthday. It is lender specific.

We have $1.3M we have to spend, roughly $380K of that in a mortgage. We were thinking of BRRR-ing a combo of 3 or 4 SF and duplex properties in 2 different markets. Of course, we would love to be "cash buyers" for a quick close, but obviously, we can't be on all of them.

Can we get decent financing on a conventional loan if the properties do not yet have any rental history?  Also, if we plan to short-term or mid-term some doors, how does that affect financing options? 

If we can't get conventional loans with 30% down payments, we were going to buy 2-3 and refinance them later. I just need to at least get that $380K loan incorporated into the exchange.

BTW-We are experienced long-distance landlords and 10-year Airbnb hosts. Cash flow will not be terrific because of the markets,  but we are willing to buy and hold long-term. We identified these markets for personal reasons.

Thanks in advance for any advice you can give me.

Pat

Hiii, I currently own a duplex that I am house hacking, I have had the property for two years now, its an FHA loan at 2.7% therefore refinancing is not an option at this time. Bought my home for 640K worth 810K now, recently had it appraised.

I am looking to buy my next investment property, a fourplex to be more specific. I am looking at either a Conventional loan vs a DSCR loan, don't know if there are other loans I should be considering? I recently had a lender tell me that I would not qualify for a conventional loan due to DOI ratio has to be at 45% and currently I have no debt except for my current home. He stated that I would have to pay 300K to my current home to qualify, which I don't understand why that is. I am a travel nurse and I make good money but have only been doing it for a little over one year and half, but I also have a per diem job, I have been working for that hospital for 4 years now.

Also I would need 20-25% down which I don't have all of at this time. I could continue to work and save that amount which would take me another 1-1 1/2 years, wondering if anyone had any suggestions on other options to fund the down payment. Is there a way or a loan that would allow me to enroll the down payment into the loan? Would that even be a good idea? Thought about a HELOC but I am unsure if I would be able to obtain it and/or if it would generate what I need to cover down payment.

Looking for some clarification/guidance, feel so lost at the moment. Thanks in advanced.