All Forum Posts by: Alan Dunlap

@Andrew Postell

Hey thanks for the response. Happy New Year!

@Eric Johnson

Yes I’m very curious to see where this goes!

Hello BP community!

Any lenders out there have any opinions on the lending changes coming in 2021? The DTI requirements are being replaced, using other factors to qualify for mortgage:

https://www.barrons.com/articles/a-recent-change-in-lending-rules-could-make-getting-a-qualified-mortgage-easier-or-cheaper-for-some-51608389707

https://www.reuters.com/article/us-usa-cfpb-mortgagelending/u-s-consumer-watchdog-finalizes-new-mortgage-rules-idUSKBN28K38I

https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-issues-two-final-rules-promote-access-responsible-affordable-mortgage-credit/

I wonder if this will be helpful for investors, or just allows more people to qualify for mortgages.

Happy holidays !

@Zak Marinko

try city-data.com

Since Chicago is so big you’ll have to drill down to specific zip code

@Philip Wilson

That’s fine to look in those areas. Just make sure your income qualifies so you can afford a mo45gage in those target areas. I would also say that inside Chicago isn’t so much a good vs bad neighborhood as it’s a block by block scenario. Neighborhoods listed as trending can have a bad section and vice versa. Which is why shouldn’t buy sight unseen but that’s going off into different topic.

Are you working with a realtor to find properties fitting your needs? Are you working with a lender who isn’t just saying wait six months but helping you put plan in place to give you best chance of mortgage closing once you’re ready?

@Philip Wilson

Either strategy can work but flips can be risky especially for real estate rookies.

You're waiting 6 mos for approval- is that for FHA or conventional with 20/25 down?

Are you looking for property already rehabbed or something where rehab costs are included in the financing?

saying I want to invest in Chicago area is a little generic. 70+neighborhoods alone inside the city. Each suburban municipality

has its own pluses and minuses in regards to being a landlord, along with affordable inventory. So you’ll need to look at a few areas and narrow down so can focus on target area to make purchase.

@Dovi Hillelsohn

Sounds like lenders tightening their requirements in the age of COVID.

Big banks are first to stop lending to investors

Smaller banks and credit unions should lend but may be lending on case by case basis

Since you said the properties are stabilized, not vacant PM me and I may have some lenders you haven’t tried. As far as I know they are still doing refi on investor properties

@Dovi Hillelsohn

Are you working with conventional or commercial lenders? Commercial lending shouldn’t have 6 mo/1yr seasoning.

@Jake Marotta

So it sounds like you want to be a landlord, not a flipper.

-need to figure out what city you want to buy. Check if high taxes or lower taxes

-need to figure out how much you can afford

-how to finance it

-even though you are handy, may want to start with property needing light rehab

-find out area rents for similar sized property

@Jake Marotta

You can also look at home as point A and work as point B and start noticing the for sale signs. Can write them down and look up the details later to see if they might work. Properties around work may be industrial/warehouse but in your line of work that may be helpful.

My 2 cents