All Forum Posts by: Andrew Garcia

Hi @Jeremy Britt, pretty much every lender should be able to refi after 6 months. 

If you are looking to refi before the 6-month mark, that would be a different story.

If you would like a referral, I would be happy to provide one.

Hi @Armando Montrond, first, I would get the funding sorted out.

If you cannot buy the deals once you get them then you wasted time, effort, and money on marketing.

Otherwise, you can start marketing then wholesaling them or bringing in partners to buy the deals with.

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

 Of course, @Kelley Cock. You can also look into getting a HELOAN which is a fixed-rate fully amortizing second lien. Essentially a second mortgage.

That way, you are still leveraging your equity but without some of the downsides of a HELOC.

The rate is going to be higher but if the numbers make sense, you can look into this strategy as well.

If you would like a recommendation for a lender that can do either a HELOC or a HELOAN, please let me know.

Hi @Jordi Valado, OPM does not necessarily come from PMLs or HMLs. 

Typically, PMLs only lend to people once they have a proven track record. HMLs do not care as much.

It sounds like you are going for a BRRRR or a flip. In that case, you should get a fix and flip loan for 80-85% of the purchase price + rehab.

Then, do this a few times and you will have a relationship built with the lender causing you to get better rates and terms.

If you do not have the down payment, connect with some local investors and bring the numbers to them.

They will decide whether to come on as an equity partner or not.

This should help you get a few under your belt while building up capital.

From there, you can take it on your own.

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

Hi @Allen Collins, there are instances where the business loss can be excluded from your DTI ratio.

However, no one on here can give you a truthful answer without having more information.

Hi @Napoleon DeVeyra, welcome to the community!

There is so much great (and free) content on BP. Read and comment on the forums, connect with investors, and analyze deals.

Let me know if I can ever be of assistance.

Hi @Kelley Cock, since this can be classified as a second home, you might want to find a house you like and buy it without rehabbing it.

The reason I say this is because you can purchase a second home for 10% down. However, if you were to do a cash-out refinance, you would have to leave 25% in the property.

If that 15% can be used to better effect somewhere else, this might be your best bet.

As for using the HELOC for a down payment, it might not be the best idea.

With the rising rate environment that we are in, rates could go to double digits. Since your HELOC is deployed for long-term use, you could end up paying a double-digit interest rate within a few years.

You cannot refinance to pay off the HELOC because then your primary rate shoots up. The only way out would be to sell the property to get access to funds to pay off the HELOC.

Generally, HELOCs are better used for short-term deployments of capital such as rehabs.

If your plan is to use the HELOC as a down payment on a fix and flip loan, then refinance to pay it off in 6 months, this would be a great use of the HELOC.

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

Hi @Sean Beyrouthy, I can refer you to a great lender that does DSCR loans in PA.

Feel free to shoot me a message to exchange information.

Hi @Den Locke, there are a few things that you need to keep in mind when analyzing this deal.

1. STRs are an entirely different animal than LTRs. Make sure that you are prepared to take it on before jumping in.

2. AirDNA is not always the most accurate. Talk to a local STR-focused agent or PM to tighten up those numbers.

3. When calculating CoC, I would take the cash that you would get from selling the home (90-95% of the value - outstanding liens). That way, you are getting an accurate comparison between this and another investment.

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

Hi @Jason Smith, someone made a list HERE.

The list is somewhat dated and some of them no longer offer them but if you call around, you should find someone that can do it for you.

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