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All Forum Posts by: Andrew Postell

Andrew Postell has started 84 posts and replied 7603 times.

Post: Delayed Financing Issue

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Jonathan Welch very sorry that this has happened.  To get to the short of it - you can ABSOLUTELY refinance, right now, without waiting.  If a lender is using the ORIGINAL PURCHASE PRICE of a home - that is 100% incorrect.  I mean, that is allowed.  Meaning, is it allowed to be more strict than Fannie/Freddie (we call them overlays).  So, even though Fannie/Freddie would allow a higher appraised value on your property it is allowed that a lender doesn't have to follow that rule.  Lenders can be MORE strict...but not less strict.  It's important for us to work with lenders that have no overlays.

Now, the appraisal is just ONE layer to your post. We also then have to speak about cash out, credit scores, reserves, etc. with Fannie/Freddie. Or, we can just go with DSCR loans.

This has been an ongoing issue for years and years and years.  Not every lender will do what we need to do.  So, it's important to work with the right lenders.  I wrote an entire article on how to structure your deal from the beginning (which means you would need to go back in time) HERE.  You can at least know for the next time.

Again, you can use DSCR loans right now to get what you need. Reach out if you need any help with anything. Certainly here to assist. Thanks!

Post: Need Advice – Sell Now or Refinance Hard Money Loan?

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@ShaRae Kalian yeah, this is a 100% sell scenario. There's likely no other financing here that would give you a better scenario. Meaning, if with NO ratio on a DSCR loan...so less money to refinance...but you would be bleeding money every month on negative cashflow. So, sell the property. Nothing wrong with making a profit on a flip.

Post: Using Future Rental Income to Qualify

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Mak Khater that is completely untrue.  That is not accurate at all.  You can still use projected rental income to this day.  Feel free to reach out.  Certainly here to help.

Post: Can I use a HELOC to build a new home? or Construction loan.

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Taya Larsen I will tag the original poster like this @Christian Requejo and that gives us a notification to respond.  Now, Christian hasn't been active since 2023...but sometimes people just read things and don't respond very much.

Now, the things I would share with you in your inquiry here:

1. Speak with your builder about how much it takes you build a home.  Ask them about the price but also ask if they need you to secure financing.

2. If they do need financing, then speak with your lender about their new build financing options.  If they don't have any...then we need to find one that does.

3. Part of the equation is how much equity can be drawn from your property as well, this would also be a question for your lender.

4. And the final step, what will you do with your current home? If you want to keep it, then would you refinance that new build to pay back the HELOC? Or does your financing terms require you to do something else (which is why we need to ask question #2).

Maybe the original poster will respond as well but those are the 4 items I would tell you to uncover.  

Good luck!

Post: Seasoning Period (New Construction)

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Jacob Glover yes, with some of us seasoning would start at ownership of the land.  And with some of us, there is no seasoning.  The important thing is to get prequalified to see what the details of your future loan would be.  Now, how do you know what lender to get prequalified with?  This is a super important question and it doesn't just apply to lenders. How do you know that a contractor is any good? An electrician? A title company? Anything? Even if they do have 20 years experience...how do you know really? And while nothing is foolproof the most consistent method of finding good vendors is relying on OTHER real estate investors that have worked with those vendors. This is why we network with other real estate investors - kind of like what you are doing here!

So, let's try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. The priority is consistent recommendations from active investors. Oh, eventbrite too. But post locally for this. That’s the best bet.

Post: Where to find Investors

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Amanda Dobbs you have some good comments above but we can't tell anything about the property you are looking at.  Any reason why you need a "private person" here?  Why won't normal lending methods work for us?

Post: Creative financing options for distressed property

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Jesse Simmons I want to tackle this from a little different perspective if you don't mind.  Can you improve commercial properties with great results?  Sure.  And there are people that do that out there.  But just about everything is different on the commercial side than the residential side.  I mean, conceptually it's the same...but so many differences that it would take too long to describe.  This is why we usually stick with residential properties.  With residential properties everything is easier - establishing value, financing, qualifying, finding the deals, etc.  Don't get me wrong...it's still VERY hard to do - but it's easier.  

This type of property would be very challenging for an EXPERIENCED investor to take down.  I just think you would find better deals looking at the residential side of things.  

Hope you don't mind me saying like this.

Post: 1st time REI ready to make first purchase!

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

Hi @India H. Thanks for the post here.  

What you are asking is a super important question and it doesn't just apply to lenders. How do you know that a contractor is any good? An electrician? A title company? Anything? Even if they do have 20 years experience...how do you really know? And while nothing is foolproof the most consistent method of finding good vendors is relying on OTHER real estate investors that have worked with those vendors. This is why we network with other real estate investors - kind of like what you are doing here!

So, let's try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Your profile states Dallas and there are several here in our area.  Now, your post also stated Dayton, Ohio - any reason why you want to invest elsewhere?  Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. The priority is consistent recommendations from active investors. Oh, eventbrite too. But post locally for this. That’s the best bet.

Post: How to spot scams or is there a site that evaluates DSCR lenders

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Bruce Bennett this is a super important question and it doesn't just apply to lenders.  How do you know that a contractor is any good?  An electrician?  A title company?  Anything?  Even if they do have 20 years experience...how do you know really?  And while nothing is foolproof the most consistent method of finding good vendors is relying on OTHER real estate investors that have worked with those vendors.  This is why we network with other real estate investors - kind of like what you are doing here!

So, let's try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. The priority is consistent recommendations from active investors.  Oh, eventbrite too. But post locally for this. That’s the best bet.

Post: Self Employed or W2??

Andrew Postell
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
Posted
  • Lender
  • Fort Worth, TX
  • Posts 7,929
  • Votes 6,319

@Todd David Crouch Hmmm, so the term "finance a project" has me a little curious.  What do you mean by that?  Because if you mean you were trying to finance a flip...then no income is required at all!  You can do that without any formal income.  Now, there are OTHER things that you need, so if you could give more details then that would help us answer this a little more accurately. Thanks!