All Forum Posts by: Andrew Garcia

Hi @Nicoló Tossici, I agree with Conner. If you wait for the property to go up $50k while your interest rate drops half a percent, you will still be paying more.

Hi @Jerika Demos, David explained it perfectly. 

I am not an HML myself but our fix and flip program has similar numbers.

I would be skeptical of 90%+ financing. For a newbie, they would be putting down 15-20% of the purchase + rehab, depending on a few factors.

Once you find a good deal, you can try to raise the 15-20% in equity.

You can handle all the work of acquiring and managing the deal and they just have to put up the money and get a return.

Hope this helps! Let me know if I can be of any assistance.

Hi @Travis Pirtle, I have seen a lot of my clients take out HELOCs but generally they do it with the intention of paying it off within a year. Think fix and flips, rehabs with a cash-out at the end, etc.

Most of the ones that do it for long-term financing, will cash out. Even if their rate goes from 2.5% to 5.25%, they are still happy because they can get a better return than 5.25%.

Others really care about having a low rate so they don't want to. You could also look into getting a second mortgage but there is not much appetite for them in the market and HELOCs are more appealing to them so the rates are not the best right now. Think 8-9%.

Hope this helps! Let me know if I can be of any assistance.

Hi @Sarah Moncivaiz, the issue with refinancing is that you would go negative on the cahflow. That is okay if you are going to reinvest that money somewhere that can make up the cash flow. P&I on the new loan at a 75% cash-out would be around $3,200 a month.

If you can make up that difference by investing the $275k, by all means, do it. However, since you are stretched thin, I would sell and reinvest that money somewhere that would provide you with better returns.

Hope this helps! Let me know if I can be of any assistance.

Hi @Joseph Mazzotta, congratulations on the move!

You could connect with some local investors and be a partner on fix and flips or BRRRRs with them. They will love that construction experience.

Once you get that experience, who do you think they will come to when it comes time to list the property?

Not only that, but you can apply that knowledge to other investors in the area and pick up more clients.

You can also utilize this once you start investing as well.

Hope this helps! Let me know if I can be of any assistance.

Hi @Kevin Santos, I would need to take a closer look to see if you would qualify for conventional.

However, if you have 20% down, you could utilize a DSCR loan where you are qualified based on the income generated by the property, not your personal income.

Hope this helps! Let me know if I can be of any assistance.

Hi @Lindsey Beeney, what type of refinance are you looking to do?

Conventional or more investor-friendly products?

Conventional generally requires 6 months waiting period between purchase and refinance. You could do delayed financing on this.

Investor-friendly loans such as a DSCR loan would allow you to cash out quicker at 75% of the appraised value.

Let me know if I can be of any assistance.

Hi @Chris Allen, it depends on what you can actually buy.

There is a housing shortage across the country so it is harder to get offers accepted. Especially, if you are using an FHA, USDA, or VA loan.

With that being said, here are some considerations:

1. NBs are much easier to get offers accepted.

2. Nicer houses in nicer areas generally see higher appreciation than ok houses in ok areas. That goes for both rental appreciation and home price appreciation.

3. Buying a heavily used property to rehab for a primary residence is generally not the best use unless you are doing it because you like the area and want to make the home your own or you need to do it because you cannot afford a minimal repair home.

4. Your comfort level. If you are going to sell in two years, it might not even make sense to buy a primary. Even if you see 10% appreciation in that time, the selling fees will make it so you basically break even.

Hope this helps! Let me know if I can be of any assistance.

@Ayanna D., they can lower the purchase price. However, that is not cash in your pocket on day one.

Hi @Rene Cisneros, I can do standalone seconds on investment properties. Fixed-rate fully amortizing.

However, for a HELOC, as Caleb said, your best bet would be a local bank or credit union.

Hope this helps! Let me know if I can be of any assistance.