All Forum Posts by: Andrew Garcia

Hi @Greg Martin, welcome to the community! You are in the right place!

Let me know if I can ever help you on your real estate journey.

Hi @Heidi Kenefick, it depends on what your goal is. 

If your goal is to maximize cash flow, I would add an extra bedroom for an extra $850 per month. 

If your goal is to make the home more appealing when you sell, the open floor plan might be better. 

Keep in mind that by adding a bedroom, it will also increase the appraisal so that should not have too big an impact on your choice.

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

Hi @Derrick Todd, welcome to the community! You are in the right place!

Please let me know if I can ever be of assistance.

Hi @Joakim Ryan, I am a lender licensed in PA. I work primarily with investors. 

If you shoot me a message, we can dive deeper into your scenario and see if it would be a good fit.

Hi @Andrew J Palmer, great name by the way. 

How high is "pretty high"? Also, did you both report the LTRs on your schedule E last year? Have you been working part-time for at least two years?

Answering these questions will help me understand if there are any workarounds. If you feel more comfortable answering them in private, feel free to message me.

@Charles Schram, I see. I did not realize it was a fix and flip loan. It all comes down to whether you want them to be debt partners or equity partners.

If you give them straight 10% IO for a year, then pay them off by refinancing into a long-term loan, that could be attractive to some investors. 

Other investors will be incentivized by a longer-term cash flow. By offering equity, you are attracting long-term partners so you want to be more cautious of who you work with.

I think it really depends on investors' confidence. If you have a great track record and the deal has lots of upside, equity may look more attractive. If you are more of a risky proposition but can show the ability to repay in the case that the STR does not work out as planned, the debt will lure in more investors.

Hi @Christopher Cosby, if the company and individual is licensed to provide loans, you can look them up on the NMLS Consumer Access. Many are not private or hard money lenders but there are similar products.

For example, my company is licensed but we also have fix and flip, bridge loans, business purpose loans, DSCR, etc. and many other licensed lenders have them as well.

With private and hard money lenders, you will almost always be charged origination points. However, for licensed lenders, it is usually baked into the rate and you have the ability to pay points to buy down the rate.

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

Hi @Josh Wickboldt, the lender is telling you that because you are getting primary residence pricing on the cash-out. If you do take that pricing, you will need to live in your current home for 1 year. However, since you plan on purchasing another primary residence, this current property would be considered an investment property so you would need to take that pricing.

In short, if you want the best pricing on the cash-out, you need to live in the property for a year. If you can take a slightly higher rate, go with investment property pricing.

Hope this helps!

Hi @John Barnabas Susuve, are you looking to invest in properties in the US or PNG? I can only offer my knowledge if you are looking in the US.

If you are, I would be happy to give you some information.

Hi @Ryan Keenan, yes you will want to look into net rent loans or DSCR loans most likely. Look for a broker or non-QM lender that can use alternative sources of income.