Investor · Elberta, AL · Member since 2016 · 8 posts · 4 votes
Hi everyone! I'm really excited to have found BiggerPockets. I've been out of the REI game for a while and I'm excited to get back into it. My profile tells a bit about me but I'll repeat the highlights.
I am a recently retired US Marine. I working in the home improvement/repair field. I would REALLY like to be improving my own real estate in the Milton, Navarre, or Pensacola FL area.
Here's the question: I have been turned down for a mortgage because "I haven't been in my current business for 2 years..." Can someone advise me on alternative financing? I guess I need to look into hard money financing but I have never dealt with that and know nothing about it.
I will continue to read, listen, network and learn.
This seems like a GREAT community of people, I'm happy to be here!
Realtor/Investor · Pensacola, FL · Member since 2015 · 9 posts · 2 votes
10y
Hey Jesse!
We have a couple of rental properties in Pensacola and will be moving down there in about a year. Nice to meet you and thank you for your service.
Regarding funding, have you tried VA loans-have you contacted USAA? Also, Bank of America announced recently that they are doing 3% down: https://shar.es/1dEazS
Here are some other ideas-coming straight for BiggerPockets podcasts & other educational materials:
a) loans on your whole life insurance policies
b) partner with people
c) rent to own
d) if you currently own a property, can you get a home equity loan? (See B)
Make sure to have your financial documents available. When I was listening to the Thursday online BP webinar, Brandon mentioned having this information organized & available will help in every way with financing-whether you're going for hard money, a partnership, or bank loan.
If they have MeetUp groups in Pensacola for real estate, attend the meetings.
Lender · Amarillo, TX · Member since 2016 · 36 posts · 12 votes
10y
@Jesse Tegtmeier First off Thank you for your service to this country.
2nd: When you were turned down for this loan was it a traditional mortgage? Have you tried talking to a local bank? Often they can get around this timeing issue that you are running into.
Realtor/Investor · Pensacola, FL · Member since 2015 · 9 posts · 2 votes
10y
Hey Jesse!
We have a couple of rental properties in Pensacola and will be moving down there in about a year. Nice to meet you and thank you for your service.
Regarding funding, have you tried VA loans-have you contacted USAA? Also, Bank of America announced recently that they are doing 3% down: https://shar.es/1dEazS
Here are some other ideas-coming straight for BiggerPockets podcasts & other educational materials:
a) loans on your whole life insurance policies
b) partner with people
c) rent to own
d) if you currently own a property, can you get a home equity loan? (See B)
Make sure to have your financial documents available. When I was listening to the Thursday online BP webinar, Brandon mentioned having this information organized & available will help in every way with financing-whether you're going for hard money, a partnership, or bank loan.
If they have MeetUp groups in Pensacola for real estate, attend the meetings.
I am in your area and active duty military now. Welcome to BP and I look forward to meeting you at some of the networking events we have in there area.
As far as financing, you may want to think about some private money solutions (friends, family, warm network) that want to get a nice return on some of their money. Or partner up with someone who has lazy money around on some rentals or flips.
Another way to go is local banks, like @Brad Stuteville said. I have a few contacts in the area that may work, just shoot me a PM if you want them.
And, another option is to look for some owner financed properties where the owner will hold the note instead of the bank. There are a lot of older folks in our area with a lot of equity who wouldn't mind making a percentage rate return on their money instead of selling outright and paying a lot of tax on the lump sum cash offer.
Lots of options. Come network with some of the other local investors on here June 6th in Pace at 6pm. I will put up a post this weekend about it likely. Who knows, maybe one of them has a deal that will work for you with owner financing...
Realtor/Investor · Pensacola, FL · Member since 2015 · 9 posts · 2 votes
10y
Although you are from Elberta, not Pensacola there is a "Pensacola Professional Investors Guild-Real Estate" Meetup with over 200 members. Maybe it's not too far? Best of Luck.MAKS
Investor · Elberta, AL · Member since 2016 · 8 posts · 4 votes
10y
Marcia, Thanks for the ideas!
B, and C are possibilities I am looking for.
Put together a document package-great idea
There is an REI meeting the second Tuesday of the month at Golden Coral in Pensacola, I've missed it the last two months due to work, but next month I'll take the whole day off if I need to. I'm searching for other groups.
- I will definitely shoot you a PM concerning local banks!
- Finding folks who would like to owner finance...I'll have to look into the podcast and blog and learn more about just how to locate these kinds of people. I definitely see the win-win aspect
Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
10y
@Jesse Tegtmeier Welcome to BP and the area! I am an active investor in the area as well. You've got some great ideas on this thread to get started. You mentioned that you are in the home improvement/repair field, so I take that you have experience in renovating property? Another option is to partner up with an investor in the area where you can be the manager for the renovations and have a share in the profits.
The meet up on June 6th that @William Allen put together is a great place to network with local investors, learn, and put deals together. Looking forward to meeting you then!
-Partner up with an investor, yes, that would be a great team! I'm sure there are investors who for various reasons don't want to be personally involved in the rehab of houses. That's where I would come in. I like the work and have experience, equipment and a network of folks who do that kind of work.
Maybe I can meet someone like that on June 6!
This BP community really is awesome, so glad I found you all!
Lender · Dallas, TX · Member since 2015 · 19 posts · 14 votes
10y
VA loans are some of the most expensive loans you can get. If you can afford to avoid them (by having any down payment), you should. FHA and conventional loans will save you tons of money in fees, though you'll have to have a higher down payment. Most conventional loans will require 2 years employment history for approval, but look for a regional bank or credit union that doesn't sell off its mortgages. There are lots of them (including my employer), and those companies can make exceptions on things like that because they don't have to follow investor guidelines.
Investor · Elberta, AL · Member since 2016 · 8 posts · 4 votes
10y
By the way, my financing situation has taken an interesting turn.
Before giving up on my current loan application I asked them to only consider my retirement pension and forget the pay from my current job.
That qualifies me for $80k...It's a VA loan so the place has to be move in ready, pretty much rules out foreclosures. Leaves mobile homes that are move in ready and on a foundation with a property deed etc. A mobile home would be ok but I would really like to have an exit strategy, not just pay retail for an old single wide...
By the way I intend for whatever rehab I finally get into to be a primary residence until I can complete the rehab, and either flip it or rent it. Meanwhile of course I'll be working on ways to fund the next property.
Does anyone have any other ideas of what I could buy with a 80k VA loan?
Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
10y
@Jesse Tegtmeier There are some options in the Pensacola and Milton areas for sub80k properties that need some fixing up. You can buy foreclosures, it'll just mean that you will have to fix the property up to VA standards prior to closing out of your own pocket, the banks won't pay for repairs.
Investor · Elberta, AL · Member since 2016 · 8 posts · 4 votes
10y
@Elizabeth Grahsl, I'm curious as to your reasoning that VA loans are the most expensive loans. Is it because of the funding fees? As a disabled veteran funding fees are waived. If there are other things to consider that makes VA loans more expensive I would be interested to learn from your experience.
@Elizabeth Grahsl, I'm curious as to your reasoning that VA loans are the most expensive loans. Is it because of the funding fees? As a disabled veteran funding fees are waived. If there are other things to consider that makes VA loans more expensive I would be interested to learn from your experience.
Thanks!
Hi Jesse - Semper Fi
Even if a VA loan is more expense, take it! Where else can you get 100% financing?
Lender · Carlsbad, CA · Member since 2016 · 90 posts · 56 votes
10y
Jesse - Semper Fi! Listen - you don't need 2 years in the same JOB, you need 2 years in the same INDUSTRY. So, if you can connect your current work to the new position in some way, you should be fine even without 2 years. HOWEVER, if you STARTED a business and are self employed, you also need 2 years self employment income to be able to calculate income...
VA is the best deal around and the only thing that will get you 100% financing conventionally without Mortgage Insurance, etc... I am not convinced you CANT do it based on what you wrote alone, but let me know if I can help clear anything up for you. VA is VA. Guidelines are guidelines. Banks don't make guidelines, they just check your ability against them. That being said, most bigger banks don't hire good people. They don't have the money to spend on them. So people get bad advice. You may be able to get that done with a VA loan.