All Forum Posts by: Aaron Antis

Thank you!!!

Appreciate any input, in advance.  

I am just thinking ahead, just in case, but wanted to get input on what options I could have with current tenants in a lease that might not expire for close to 1-2 years from now in the event I "needed" to sell a house or two, either for a better cash position for myself, or to 1031 into a larger investment property, etc.?  

The lease from my management company doesn't have anything in it currently in case the landlord (me) needs to break the lease early.  If I can break it still, what does that look like, and are there standards on kinds of concessions for having done so (like giving them 2 months to find another place, those 2 months on my dime, etc.).  Obviously I would like to give them plenty of time to uproot their lives, but also want to balance being too generous or giving away way more than is necessary.

Thoughts?  Thank you again!

Thank you, Jacob!

Wow - thank you so much for the help!!

Quote from @Bill B.:

How much is your current mortgage at what rate? It seems hard to believe blending it with a $200m 12% loan makes more sense than buy somewhere else. Imagine you owe $400k at 3% and borrow this $200k at 12%, that’s the same as borrowing $600k at 6%. That seems like a much better deal than “flushing” $100k plus of your $300k-$400k expansion money there’s almost no chance you get back. 

Unless you love your home / neighborhood and there’s nothing else available this is your chance to buy a home that fixes what you don’t like about the current home.  

Ps. There are buyers who are only looking at single story homes and they tend to be older people with money. You can target the, while buying a much cheaper ($ per sf)  story. 

 Thanks Bill - great question.  Home is worth a little above $1 million.  I owe about $600K on it at 3.25%.  We do like the area, like our neighbors, just have the much smaller model home on the street.  Other than limited space, we love the home.  If I get a new home at 6-7%, to get to the same size of a home, same age, same size yard, everything, that is a $1.3-$1.4M home, which is incredibly expensive.  If I were able to obtain another loan for $200K, even at the same interest, I can pay that down and off over a few years, and then I'm back to my low interest loan only and a ton of equity in the home I could potentially tap into as well.  

With interest rates being so high, I'm kind of stuck in my primary residence, unless I REALLY want to stretch things to only get into a slightly bigger home. So, I am considering adding a 2nd level to my 1 story home. I know it can be done. Costs would be $300K - $400K depending on how big, how nice, etc. I would be aiming to keep the costs toward the lower end. Currently, I have my primary home loan, then a HELOC that has over $200K capacity ($50K balance remaining on it, but should be paid down in the next 3-4 months), so $155K or so available to draw on my HELOC at about 12%.

I have the capacity to take on an additional $200K in debt on top of utilizing my HELOC, so long as when I am paying it down the monthly charges also go down. I can't do a new 30-year and lock myself into triple the payment.

What options do I have to get a construction/remodel loan?  Any idea on what interest rates would be on that?  Please let me know if there is anything I am not aware of that would make sense.  

Thank you so much for any input you can provide here!

Hi All - I am really trying to understand the mortgage and title process a bit better.  I don't understand what all the line items mean, how they're calculated (or not), and what is happening behind the scenes and by who between when I put an offer on a house and I sign the documents.  Is there a course or something similar that can walk me through this?  Appreciate any insight you might have here.

Quote from @Jayson Cain:

Hi @Aaron Antis, I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.

Jayson, that would be great!  I am specifically in Lake Forest, so maybe it would make sense for us to get together over lunch or coffee.  Never hurts to be connected to more people in this space.  Let me know if you'd be open to that.

Quote from @Jill F.:

We usually send a personal financial statement and a business plan  to new lenders when we set up an appointment. Though the business plan seems to be a 'nice-to-have' not a 'must have' for most lenders, we've had loan officers tell us that it helped them sell our deal to the loan committee. Almost all the commercial lenders have a personal financial statement form online, pick one that looks nicely formatted and type up something similar-- it's the first thing they are going to ask you for. If you already have a deal you want a new lender to consider, they'll want an executed contract and at a minimum a rent roll and leases. If you take them a b.s. deal for your first deal it will probably be harder to work with them later; find out their dscr requirement and make sure your deal can meet their requirement.

 Thank you, Jill!  That is GREAT information and very helpful.  We will definitely do that.

Quote from @Erik Estrada:

Quote from @Aaron Antis:

Hi All!  

I could swear I heard something on the biggerpockets podcast talking about DSCR loan presentation documents of some kind. Basically, what I maybe thought I heard was a general outline of some of the documents that would be good to present to DSCR lenders when working to get funding. Does anyone have access to anything they would be willing to share? My potential partner and I are looking at what we'd need to pull together so we can be prepared after we form our partnership and look to buy properties together. Anything would be helpful, even a loose outline on the main items that need to be presented. THANK YOU SO SO SO MUCH!!!

-Aaron Antis

Seeing that you are working with a partner, your best bet is to create an LLC first. From there, Most DSCR lenders will take a look at the market rents for the property (or if leased, the current rents), credit score, property type (1-4 unit only, no mixed-use), ownership history (you cannot be a first time homebuyer), and if you have enough cash to close (typically 25% down, although I am starting to see 20% for purchase).

 Thank you, Erik!  That is the path we are on.  We should be good on those items.