Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
Hi, I have been passively learning about real estate investing, but have not really aggressively pursued it. Now, I feel like I have learned enough and want to really get into the game.... but I am currently staying home due to personal circumstances which is preventing me getting a traditional loan.
I have a house in Atlanta that I paid cash for and renting... I wanted to cash out refinance so I can purchase some more properties. (Positive cash flowing ones) and slowly build my portfolio, but I am currently not working nor have a business with 2 year track record where I can prove to a bank that I can pay the mortgage.
Does anyone know of any creative ways to finance properties? Any insights will be greatly appreciated. I have heard of companies that loan money based on Cashflow instead of your income. Can some folks recommend some of those companies? Or if you have other better options to share I would appreciate it so much!!
@Brian Garrett thank u Brian for the kind response. I did some research on portfolio lending, I am going to start calling banks. Thank u thank u 😬
Portfolio lenders are a great option. Some Hard money lenders also offer rental loans for cash outs. Your personal income will not be needed with them and they can probably work with little to no rental/bussiness history in certain cases.
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Caleb Jordan thank you for all the advice. So I do have additional question. Do u need an LLC or business set up to try for a portfolio loan? Or can u obtain one under your personal name? Also, what are the criteria that they look for if they don’t look at your income? And how much downpayment do they usually require?
Lender · Arlington, TX · Member since 2018 · 465 posts · 184 votes
7y
You will have to check with various lenders about LLC requirements. Usually if a property rent will cash flow with mortgage payment they use that. Every lender will have a ratio, like rents need to be 20% or 15% etc higher than cost. For a flip they want to see it is viable. Usually the loan must be a certain percentage of ARV. They will probably want to see reserves. For rentals you will easily be looking at 20% to 30% down. For a for flip maybe 10% or 20%
The more experience and better credit you have the better terms you can get.
Rental Property Investor · Seattle, WA · Member since 2018 · 66 posts · 21 votes
7y
@Caleb Jordan hi thank u so much for the info..... I am going to actively pursue this as this is the only thing that’s preventing me from being able to Purchase more positive cash flowing properties.
Hi, I have been passively learning about real estate investing, but have not really aggressively pursued it. Now, I feel like I have learned enough and want to really get into the game.... but I am currently staying home due to personal circumstances which is preventing me getting a traditional loan.
I have a house in Atlanta that I paid cash for and renting... I wanted to cash out refinance so I can purchase some more properties. (Positive cash flowing ones) and slowly build my portfolio, but I am currently not working nor have a business with 2 year track record where I can prove to a bank that I can pay the mortgage.
Does anyone know of any creative ways to finance properties? Any insights will be greatly appreciated. I have heard of companies that loan money based on Cashflow instead of your income. Can some folks recommend some of those companies? Or if you have other better options to share I would appreciate it so much!!
Hey Jenna
I read your thread's title and thought instantly, "She has a job, she's a real estate investor."
These loans do exist and although the rates and terms are higher than regular conventional rates and terms, they work very well for real estate investors that have decent credit, can't qualify for conventional for whatever reason and want to either take cash out or just keep their properties for cash flow.
Hi, I have been passively learning about real estate investing, but have not really aggressively pursued it. Now, I feel like I have learned enough and want to really get into the game.... but I am currently staying home due to personal circumstances which is preventing me getting a traditional loan.
I have a house in Atlanta that I paid cash for and renting... I wanted to cash out refinance so I can purchase some more properties. (Positive cash flowing ones) and slowly build my portfolio, but I am currently not working nor have a business with 2 year track record where I can prove to a bank that I can pay the mortgage.
Does anyone know of any creative ways to finance properties? Any insights will be greatly appreciated. I have heard of companies that loan money based on Cashflow instead of your income. Can some folks recommend some of those companies? Or if you have other better options to share I would appreciate it so much!!
Hey Jenna
I read your thread's title and thought instantly, "She has a job, she's a real estate investor."
These loans do exist and although the rates and terms are higher than regular conventional rates and terms, they work very well for real estate investors that have decent credit, can't qualify for conventional for whatever reason and want to either take cash out or just keep their properties for cash flow.
Stephanie
Thank you Stephanie Yes!! Ive been doing a lot of research since I first posted this and found some lenders that are able to help me. YIPEEE!!!!!
I love what you said about :she has a job, she's a real estate investor"!!! I really like that thought and thank you for saying that. I too am in a little pickle, but my issue is due to Covid. I have been saving every penny and working as much as possible at my last job and I am very bankable...well was bankable. I have saved up about 30k which was pretty hard for me bc my job wasn't the highest paying. I also have been wanting to get into REI for many years and I was looking for home when my company folded. So now I have capital and a 750 credit score and feel like I am at a complete loss. I was thinking about doing the hard money thing but I would want to refi into a Conventional or even the FHA First time buyer mortgage (this would be my first house). I would love to BRRRR but now I don't know what the heck to do. I feel maybe now to get into REI, I would have to use hard money and try a flip but that is super intimidating. Im feel stuck now. I was sooo close too.