All Forum Posts by: Zac Vaughan

Hello BP members! 
I am ramping up to get into seller financing. Would love to connect with all of you who are doing this for their main strategy. Would love to be able to ask questions/ have a mentor. I would also love to be a resource to YOU and help you out as much as possible. Let’s connect!! 

Hello BP Fam, 

I have recently sold my short-term rental arbitrage business that I have had for the past 3.5 years. I am having difficulties coming up with my new investor ID. All I know is short-term rentals. I have had one LTR in the past and the tenant was not a fun experience. I have some working capital but not enough for 20% down. Thoughts or suggestions?

How much should you claim in order to qualify for a loan? And what is the income-to-loan ratio? 

Interesting. As far as number 2, I wonder if I general warranty it over, there will be no "due on sale clause". I appreciate your input. 

Hello BP members, I have a few questions regarding (can you guess?) loans! 

First off, I purchased a SFH with an FHA loan back in July. Question one: Can I re-fi now and then qualify for a new FHA instead of waiting a year? Question two: Can I quitclaim the deed from my name to my LLC and then qualify for another FHA loan?

My other topic of discussion is DSCR loans. My credit is just shy of qualifying for a DSCR loan, can I use my LLC to qualify for a DSCR loan? If so, what kind of business credit do I need, if any?

You all are awesome!! Any info at all would be much appreciated. 

Hey BP Members, I have a question for you all! 

Lets say I have a property that requires a large downpayment (+ $50,000) and I do not have the funds. The property cashflows +$2,000 and has a 3.55 Cap. What is the proper way to raise the capital without getting in trouble and if I raised the capital for the down payment, what kind of return is fair? Typically, for the smaller deals I have done, I would create a promissory note and offer a 15% ROI. Thank you!

I appreciate the advice! Thank you, Bryce. 

Quote from @Stephanie P.:

Quote from @Zac Vaughan:

Hey BP community, I am currently looking at DSCR loans and my numbers never seem to add up to BPs, and I can never get a 1:1 it's always way less than 1.

Here is an example of a property I picked out just for practice. 

BP is telling me that my NOI is $56,424 but when I do the math ($6,800x12=$81,600) - ($4,584x12=$55,008) = $26,592 NOI 

I then take that $26,592/ ($2,487x12= $29,844) = .89

I've tried this formula with numerous properties and have never been able to get over 1. Can someone please explain what I am doing wrong?

 From most lender's standpoint, they only use the gross income divided by the mortgage payment including any association costs.  It's based on the gross, not the net.

 I'm a little confused. Can you explain? You're suggesting I take my gross annual income of $81,600 and dived that by my annual mortgage payments of $29,832?

 Yes, we're calculating 20% down