All Forum Posts by: Stephanie P.

I found a 5 unit property on a single parcel in the USDA zone, My question is about financing , am i still required to put 25% down with a USDA loan? Its an investment property, a 4plex and a sfh on the same lot.

Hello biggerpockets

I'm looking at buying a home through seller financing, and the seller doesn't want to hold the note for too long. My question is as follows: can I do a DSCR refi in a couple years and take out a loan that amounts to 80% of the home's appraisal?

I know that a DSCR loan to purchase a home has a 20% down payment required. So I'm wondering if the same applies to refinancing, or is this a way to bypass a down payment.

Also, does anyone have any other ideas on how to get creative with a down payment?

I’d appreciate any insight, thanks in advance!

I am buying the property in 3 days on 7/8/22. I'm buying with cash but am borrowing from my parents. If we write up a formal loan and file a lien, will that automatically push me to 6 months or is it the same either way? Thank you for your help everyone!

I have a great opportunity for an investment property (small cabin/single family home) in a booming short term rental market in Upstate NY for US$119,000.  I had hoped to get a conventional loan and put 20% down but lenders are requiring 30%, which puts me out for cash I had hoped to reserve for the renovation.  Any ideas about other lenders I should explore?  The property is only on the market for 1 week so I am also up against time constraints.  Thanks!

I left my job last year after realizing a large gain in crypto in order to figure out a better way to spend my time. I decided I'd like to focus on real estate investing in order to preserve wealth and build cash flow. The strategy I'm looking to focus on is buy and hold SFRs, starting out in the 100k-200k range in my hometown in Maryland. Unfortunately, I realized this after I dropped my W-2, so I'm curious about any ideas/types of lenders that would help me finance. I bank with Schwab and they partner with Rocket Mortgage, so I gave them a call. It turns out they will not lend to me even after considering ~2mm in assets that they could use as a "depletion income". I was thinking of three more options:

1) Buy a couple properties with cash this year in order to produce an income on next year's tax returns to satisfy a lot of lenders. The downside is obviously that it locks up tons of cash

2) Apply for an investment loan with my fiancee

3) Find a lender that considers cash and equivalents to secure an investment mortgage.

I'm curious if anyone has any experience/advice for a cash-heavy, but job-less situation

Has anyone worked with "Do Hard Money" before? 

They claim 100% financing on fix & flips with no monthly payments. You do have to pay $3,595 for access to their program/website tools but after your first deal they "refund' you a portion of it. 

Curious if anyone has used their services before and what you thought of it? Pros/cons? Thanks in advance!

Thanks - great feedback, although I was probably not really wording what I wanted very well.

Really just want a simple understanding of What % of Investment Property deals that start as conventional or non-QM/non-DSCR that end up not qualifying, how many pivot to DSCR vs. how many just die as deals?

Can you afford to tie up 105k? That's what you need to ask yourself. And since you have 60k I'd say the answer is no. Man, you have 60k to get your RE Investment career going, and I am guessing you are newish because Hard Money seemed new for you and someone told you to borrow 100% from a HML and that just doesn't exist.

You need to build liquidity if you wanna play the game at the 500k as-is value range.  Even fix and flips at that level will cost 50k plus fees if you have experience.

You have a pathway in front of you to get there but you can't start there.

If I was you, I'd look for properties with an as-is 150k value that with a little work are worth 210k or so.  You cut your teeth there.  You hold nothing.  You float 30k-35k for 3 - 6 months and then sell and get your money back plus 25k - 30k profit.  Do that three times.  On deal four you will get 90% of purchase and 100% rehab funds with a low rate and now you'd have 130k in the bank.  Now, if you wanna park the 130k in the down payment in a property worth 600k that produces X amount of dollars per year.

If you have 680 credit and 60k you can start.  Get going on that first flip.  Get the ball rolling in 18 months - two years, you'll be where you want to be.

You really should not park liquidity until you really can afford to do so because these deals are expensive.  Down payments, fees, holding costs, it's not a cheap game and liquidity is one of the biggest deficiencies among new investors.  People call me all the time and tell me they want to buy a property worth 250k lets say and I'll say ok, what's your credit score - 620 they say - then I'll say well how much capital do you have for down payment - and they'll say 15k.  For a 620 credit score the deal would cost 75k plus fees.  You can maybe rehab a Honda for 15k.

One of the barriers to entry is liquidity.  Most have just enough for one deal so the most you should do is tie your liquidity up for a few months at a time in these fix n flips and then in a year or so you are in a different liquidity position and now you have experience too.  Now you can play with the big boys a little and be a respected borrower at a big lender.

Like I always say, anyone who wants to get that ball rolling and has 0 exp - get yourself to a 680 credit (so there are no leverage deductions on you) and come in being to afford that first deal and I'll help anyone get the ball rolling.  I love creating new investors and helping people getting into the game.

 I would not be interested in flipping it. It's a short term rental with 75,000 a year in income. I don't see how flipping makes any sense. Thank you for your reply though.