All Forum Posts by: Andrew Garcia

Hi @Jerry Villa, you should be able to build this list in ListSource. You can narrow it down by some of those features.

@Milan Edgerton, yes of course. Sending you a DM now.

Hi @Chris Kim, a few things that I see off the bat.

1. Condos are harder than townhomes to get approved for mortgages. Ensure that the condo is warrantable. If it is not, there are options, though the interest rate will be higher.

2. If you are living in one room, you can claim it as your primary and get the best pricing. If you are not, it will almost definitely be counted as an investment property.

3. It really depends on your goals. If your goal is to have 5 properties each cash flowing at $200 per month, getting a mortgage is a better idea. If you just want one property cash flowing at $1,000 per month, buy it in cash. It just depends on whether you value assets or income more.

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

Hi @Anabel Lop, if you are making money in the United States and have records to prove it, you can look into getting an Individual Taxpayer Identification Number loan (ITIN). These typically can go up to 80% LTV on refinances. Unfortunately, I am not licensed in OR but I would reach out to a local mortgage broker to help.

Hi @Jason Malabute, something that one of my clients does is agree on the price first. Then terms.

For example, iIf they agree to sell for, let's say, $10,000,000. Then, you can say "great, now that we decided on the price, let's discuss terms." If the property needs some renovations, you can always say "I want to make the best use of my capital so how about I put $500,000 down today. Then, I will spend the capital I would have used to get a loan to fix up the property. You give me the other $9,500,000 at x% interest only for 2 years, then I will refinance into long-term debt so you get the rest of your money then. I know you might be hesitant about holding the property in your name for another two years but worst-case scenario, you get $500,000 plus interest and a completely renovated property." 

Obviously, it will not work for every investor and it depends on their reason to sell. If they want the cash flow but do not want to deal with renovations, this strategy works really well. If they just inherited the property and want out, this might not be the strategy.

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

Hi @Robert E Baldwin Jr, I am a lender licensed in FL. I would be happy to answer any questions that you have about the lending side of the business. I am sending you a friend request to get connected. I look forward to connecting with you!

@Milan Edgerton, there is a lot of misinformation out there about appraisal gap strategies from both realtors and lenders so let me clear some of it up.

I am sure that you have heard that if the home appraises for less than the purchase price, the buyer must come up with the difference. That is not always true. Let me explain it with an example.

Buyer is buying a $500,000 house and putting down $100,000 (20%). The appraisal comes back at $450,000. Instead of coming up with $50,000. The buyer can simply put less down. Now, they are putting $50,000 down at 88.89% LTV. That might increase their monthly payment by a few hundred dollars but it is better than bringing an extra $50,000 to the table.

This does not work with those that put the minimal down payment down so it is harder for them to get their offers accepted. FHA is even harder for a sleuth of other reasons. If the buyer's lender is good, they should have explained this to them and allowed them to waive appraisal contingency to make the offer stronger.

Please let me know if you have any other questions.

Hi @Kyle Flynn, congratulations on being about to close on your first flip! 

There are a few things to know when buying STRs.

1. Make sure it is legal in your jurisdiction.

2. There is much more volatility and seasonality in it.

3. It requires more time/money to manage.

4. Finding financing can be tough. I would recommend going for a DSCR loan.

There is a lot more but those are the biggest mistakes that I have seen people make when dealing with these. Make sure you manage your expectations and do your homework. Let me know if I can be of any assistance.

Hi @Milan Edgerton, I am also in the DMV, based out of Montgomery County, MD. However, I am a lender, not an agent.

Most of my clients put down at least 20% so we typically have an appraisal gap strategy in place so that we can handle a home that does not appraise. That way, we can waive the contingencies and make our offer more competitive.

If your client is 3% or 3.5% down, then it will obviously be harder. Some of them will write letters explaining why the seller should accept their offer. Going new build is also great for these homebuyers because the builders don't care as much about if it is FHA or a small percentage down.

Hi @Ashek Elahi, the easiest method is to use wholesalers. They do the bandit signs and cold calling and all those things.

If you want to do those things to get a deeper discount, by all means, go for it. However, if your goal is simply to get started in BRRRRs, I would get on wholesalers' lists in your area.