Loan needed, high credit score, low taxable income, have equity

[Carolyn Clark]

How do I acquire the liquidity I need to maneuver? I’m a lifelong serial entrepreneur, not new to business development, but just now turning to real estate.

I have an excellent credit score, very low debit, equity in a condominium and a small trust account, but have mostly untaxed income so conventional lenders just laugh at me. I briefly looked at asset based lender like Visio (?) lending, but they seemed a little shady. Any other recommendations on acquiring liquidity or loans to move forward.

I own the condominium I live in, in Honolulu County with $100,000 plus in equity. The 900 sq ft condo is still increasing in value at about $1,000 or more Per month, plus I’m a commercial designer and have done some nice remodeling. The condo has a 33 year loan from the USDA at 3.25%, but still wish to sell not rent out the unit-and I believe I need the cash anyway. Definitely Taking advice on this point for sure (and thanks.)

What I really want to do is to cash out on the condo ASAP and buy small rental properties and land in secondary and scenic markets like the Oregon coast or Puna, Hawaii. As an aside, I’ve lived in Hawaii for 28 years on 4 different islands and could help anyone not familiar with he markets here, who want to enter especially Puna and Oahu.

Also need a good lawyer specializing in setting up LLCs. Thanks for help or advice.

[Mark Safrin]

Originally posted by @Carolyn Clark:

How do I acquire the liquidity I need to maneuver? I’m a lifelong serial entrepreneur, not new to business development, but just now turning to real estate.

I have an excellent credit score, very low debit, equity in a condominium and a small trust account, but have mostly untaxed income so conventional lenders just laugh at me. I briefly looked at asset based lender like Visio (?) lending, but they seemed a little shady. Any other recommendations on acquiring liquidity or loans to move forward.

I own the condominium I live in, in Honolulu County with $100,000 plus in equity. The 900 sq ft condo is still increasing in value at about $1,000 or more Per month, plus I’m a commercial designer and have done some nice remodeling. The condo has a 33 year loan from the USDA at 3.25%, but still wish to sell not rent out the unit-and I believe I need the cash anyway. Definitely Taking advice on this point for sure (and thanks.)

What I really want to do is to cash out on the condo ASAP and buy small rental properties and land in secondary and scenic markets like the Oregon coast or Puna, Hawaii. As an aside, I’ve lived in Hawaii for 28 years on 4 different islands and could help anyone not familiar with he markets here, who want to enter especially Puna and Oahu.

Also need a good lawyer specializing in setting up LLCs. Thanks for help or advice.

Visio are an established HML, we used to use them back in our broker days before we aquired funds and became HMLs ourselves. They are legit.

Of course like any HMLs,  _You_ and your property need to fit into their loan criteria. A mere $100k (not sure how much "+" we are talking about) property might not be sufficient to meet a HMLs minimum loan size. This is because they may subtract from the maximum they can lend to you a) because you could well be considered an investment property newbie and b) if this is indeed a cashout.

We for instance would subtract 10% from our loan caps for the first and at least 5% for the second and the likely remaining 65% of LTV might not be sufficient to meet our $75k minimum loan size.

You should also make sure whatever HML you use is comfortable both lending on the type of condominium this is and in the State of Hawaii.

Aside from HMLs, there are also true private lenders (though the trust issue that you seem to have still applies to them), also some lending institutions that fall somewhere between conventional and HMLs. If you can find these.

But for most people with assets, good credit but low taxable income, HMLs tend to be the way to go. You can always ask here on BP for users experiences with any particular HML you are contemplating using who are willing to lend to you.

Best wishes.