Rental Property Investor · Statesville, NC · Member since 2018 · 23 posts · 12 votes
Hi everyone! So I’m working on my networking and building my “team”. I am meeting with a mortgage broker on Wednesday. I do not have a property yet. I am just seeing where I / we (wife and I) stand for prequalifing for various loan products.
Things I’m specifically interested in is using BRRRR, possibly hard money. So I have questions around that and how she could coordinate it, if she has experience with it, etc.
Anything else I should be drilling down on?
Thanks!
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
You should definitely try to get prequalified if you can. I would ask about what kind of hurdles you might have given your income/credit, what kind of terms she thinks she could get you (rate, amortization, term, LTV, etc.) and what seasoning period the banks she works with offer (to refinance your property at appraised value versus cost, if you are doing the BRRRR model). You should also ask about her fees and experience of course.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
You should definitely try to get prequalified if you can. I would ask about what kind of hurdles you might have given your income/credit, what kind of terms she thinks she could get you (rate, amortization, term, LTV, etc.) and what seasoning period the banks she works with offer (to refinance your property at appraised value versus cost, if you are doing the BRRRR model). You should also ask about her fees and experience of course.
Hey John, you should get a sense of their specific loan programs, minimum/maximum loan amounts, credit score requirements, areas where they lend, how quickly closings can happen, if they're a direct lender, what fees are involved...these are just a few to start with!
Rental Property Investor · Statesville, NC · Member since 2018 · 23 posts · 12 votes
8y
@Andrew Syrios Thank you sir! I guess I should have said my wife and I purchased our primary residence this past May using this broker. She was great, she has changed from working for a local bank to more of an actual broker at another company that originates. My wife and I had prequalified well for our primary residence. We decided to just put the mortgage in my wife’s name and buy “half” the house we qualified for. I feel comfortable with qualifying. My goal is to just be me in this first loan of possible. My thoughts were my wife and I can each have up to 4 mortgages. So that’s 7 if you don’t include our primary residence (which after PMI it can cash flow for us if we decide to move).
Rental Property Investor · Statesville, NC · Member since 2018 · 23 posts · 12 votes
8y
@Tara Daniels thanks! I hadn’t thought about how quick she can close. I just always assume 30 days but yeah it is a valid point. If she can move quickly then I may be able to fee more comfortable if I need to throw earnest money down immediately on a great find.
Private Money Lender · Tampa, FL · Member since 2018 · 54 posts · 16 votes
8y
@John Leonard Depending on the kind of loan you're getting, closings can happen quickly. We can close in as little as 3 days but it does typically take 1-2 weeks to close.
@Andrew Syrios Thank you sir! I guess I should have said my wife and I purchased our primary residence this past May using this broker. She was great, she has changed from working for a local bank to more of an actual broker at another company that originates. My wife and I had prequalified well for our primary residence. We decided to just put the mortgage in my wife’s name and buy “half” the house we qualified for. I feel comfortable with qualifying. My goal is to just be me in this first loan of possible. My thoughts were my wife and I can each have up to 4 mortgages. So that’s 7 if you don’t include our primary residence (which after PMI it can cash flow for us if we decide to move).
Sounds like a good plan. Although I think you can each get 10 loans if you're talking about the Fannie Mae program.
Rental Property Investor · Statesville, NC · Member since 2018 · 23 posts · 12 votes
8y
Well, I met with my mortgage broker. It was a good meeting. She is working for just one lender so it was just a conversation on what they can offer. Which is a traditional mortgage with 20% down, I need 6 months of reserves ( I have for the price range I’m looking which is no more than $135k. The two kickers I’m not fond of are: Only a 2% seller assist is allowed, and I can not close under an LLC. But otherwise she can get a deal done quickly. I also spoke with a HML, no points, 10-11%, $1750 fees, $150 credit check if we find a deal and are ready to move forward, and they loan 75-80% ARV, but start at $100k
Going to keep networking and finding the right products and connections!