All Forum Posts by: Aaron Chapman

Lots off very good info from those who posted. The majority of the financing I do is for investors and it is very rare to find an investor who purchases strictly within their state. Buying outside the state where they live has become the norm. With the resources/ advice available to you on this site you should do well wherever you end up.

Talk to a lender in your area familiar with investment lending ( can be really tricky so they must have a lot of experience in it). I would be more than happy to offer direction if you need it. I close a pile of the Delayed Financing deals for my investor clients. I am not licensed in NJ or I would be able to offer more in the form of personalized info.

In that case it could be your best option, then pursue the FNMA delayed financing option the second you close. There is a solid chance you can get all the money back out to pay the Line of Credit back down to $0.00

I have completed financing for dozens of investors in this market. So far everyone of my clients have been extremely happy with it. Going along with what Bob has said the "Wholesaler Deal" is something you would have to do some due diligence to verify. The real key element here is like every market. Does it cashflow and does the property manager do their job. There are of course many other elements that you will consider, however those two are the major ones I hear the most about.

My perspective from a lender as well as the investor point of view is to use the Line of Credit for the 25% down and finance the 75% with a 30 year fixed. Being that it is a fixed rate in a historically low rate environment you will be better off in the long run when the rates decide to ratchet up on the LOC (which they will eventually). In addition, this will give you more purchasing power to expand into buying more properties and increasing your monthly cashflow.

Using the property cashflow to pay down the Line of credit will open you up to more purchasing capability and dropping your monthly credit obligations as its balance decreases. I have seen benefits to paying cash in the sense it gives you a better chance at getting an accepted offer. Additionally there is an option regarding refinancing in the first 6 months of ownership if paying cash where it is possible to finance the entire purchase price if the property appraises high enough using the FNMA "Delayed Financing Option". This is a very powerful option. It is a matter of picking the right property.