All Forum Posts by: Steven Goldman

Jennifer I believe you are asking if you can directly finance a purchase from a tax sale. The answer is no. Their may be other ways to raise capital such as a HELOC on your home, or a J.V. partner. You can refinance the property after one year of seasoning at its market rate. If you make improvements you will be able to refinance in six months with a funding company. That assumes the title is fully marketable. I wis you luck.

Welcome to the party! Attend the local meetings. Many of them reserve a portion for investors to pitch the properties they have for sale. Join the local real estate investor Facebook group Lehigh Valley Real Estate Investor create a post  looking for a.................... it is another source of off market properties. Connect with wholesalers in the valley. If you use a agent and the m.l.s. you ill just be another buyer at the declared day to submit highest and best.Good luck.

Hi Justin I am going to sound like a broken record: Whatever you represent to your mortgage company in order to obtain financing must be correct, accurate and the truth. That protects you from a free stripes sui, three hots and a cot. 

Sourcing and seasoning are news to me. As @Andrewpostell said, you will have to refinance to change from personal to LLC. You can change your title in some states without paying significant taxes but that would violate your mortgage. Good luck.

Hey Gabriel four things to keep in mind if you choose to purchase a 4plex with DSCR money:

(1) You can not live in it.

(2) You need six months reserve in a liquid or retirement account to qualify. 

(3) You need a good credit score to get a decent rate which will be in the mid 6 percent range right now. 

(4) You need 20 percent down. *

With those four things in mind a DSCR loan may be your best option if you are not working. You should run any property past a mortgage broker before making an offer to purchase. Good luck

* Also no lates on your current mortgage or other mortgages last 12-24 months.

Erika there are stated income DSCR loans available. So you will need no proof of income. The rate will be higher. Just a suggestion.

Hi Erika in order to get started you may want to look at a stated income loan. You will need 20 percent down but no proof of income. The rate will be higher than a conventional or Govt. but it will get you started. Quontic Adaptable Digital Bank does stated income loans for owner occupied. Look them up. I do not know if their footprint extends to Tulsa. You can try Kurt Robison at 317-993-3908. I hope that helps.

@Chris Rosenberg: We find DSCR loans close in under a month. But only if the appraiser and title cooperate. @Christie Stezkal: While your rate may fluctuate, your appraisal costs should be bid out and you should be presented with more than one option. The loan will only lock at commitment. But unless rates rise you should get the loan at the quoted price and costs. Chris, 20 percent is standard it sound to me like someone was using the 15 percent as a sales ploy. Current rates are less than 6.625 for a reasonably qualified buyer. Brokers or lenders who bait and switch damage the credibility of our industry. Your word is your bond. I would not do busines with a company or broker that changes their rates, fees or LTV unless they can give you a factual explanation for the changes. After all you are jammed up at the end with money and time invested so it is dirty business.

Chris We find DSCR loans close in under a month. But only if the appraiser and title cooperate.

Partially completed construction creates legal challenges to the lender. Are their potential mechanics liens or other claims which could divest them of their position on the property? However their are lenders who will lend on these projects. They will want other collateral. A second  on your home or another rental with equity.If you have a cash value life insurance policy they may use that as additional collateral.

The advice to google lenders was not as stupid as it sounds. I suggest you find a local business lender. Many of them will do this type of boutique loan for a price. It will not be cheap as the risk is much greater than a rehab loan prior to construction. The property will have to be in a LLC for them to be interested. Many of the companies which provided invoice factoring are doing these types of loans as the invoice factoring business was damaged by the easy PPP and Covid loans, so they are seeking new avenues to make high returns on their money. Good luck