All Forum Posts by: Andrew Postell

@Melchor Domantay, the company I work for does offer 15% down on investment properties I am Texas specific though.  What state are you looking in?  I can find you a Loan Officer if we are located in that state.  You can private message me if you would like.  Thanks!

@Justin Smith I think the above responses are good and I want to give you an view point from a lender. Let's say you need to borrow money in the future for a mortgage on a home. It would be very nice if you had a bank account that had NO ACTIVITY in it (or very little activity). If someone has "large deposits" in their bank account the bank is required to source those deposits normally. The more boring the statement the less paperwork you will have to do. If you know a good mortgage person then he/she can actually tell you what your threshold is for a "large deposit" and you can make sure to have a bank statement that don't have deposits over that amount. If you have the ability to have your LLC accounts and a seperate, borring account you will appreciate it if you ever need to borrow money. Just a different perspective.

@Marcia Langley If you are buying from a source that regularly lends money then that source should be accustom to amortization schedules, principle only payments, statements, etc.  However, if you are borrowing money from a source that does not regularly lend then it would be important to discuss these details before hand and do your best to get it in writing.  So if you are borrowing money from a family member they will likely be willing to help but may need some help with what you are trying to do.  It might be a stretch to get a person to give you a monthly statement but you can just google search "amortization schedule" and find some websites that can give you a payment plan for the two of  you to agree to.  Now, if you are lending the money you can use that same type of information to help structure the loan specifically so that you are protected and they borrower knows what to expect.  Good luck!

@Sanford Hobbs welcome aboard.  I'm active with several investment groups in the area.  Feel free to reach out at any time!

Hi @Jeff Van Kalker, welcome to Bigger Pockets.  I'm in Keller.  Let me know if there is anything I can do to help!

@Jeff Brown the 5.125% rate with 15% down is good for a conventional loan.  That is the minimum down payment you should expect on an investment property.  And that rate is what you should grab.  Remember the Fed Reserve just raised rates and warned that they will raise rates again 3 times in 2017.  5.125% will look really good in about 6 months. 

Hi @Tiauna Perkins, the short answer to your question is yes, you can buy a property that needs no work with hard money until you find a buyer.  You can also do that same thing with a "conventional" loan or a "portfolio" loan.  A conventional loan and portfolio loan will have lower costs associated with them.   If your fear is that you may not qualify for a conventional loan then try to find a lender or a mortgage broker with portfolio options.  But if all else fails then hard money will be another option. Hope this helps!

Corey, I am also located in the DFW area and would love to exchange information with you.  Also, I regularly attend a investment group that is free and friendly.  Their website is

http://www.dfwreiclub.com/ Feel free to send me a private message.  Thanks!

Got ya @Tiffany S. Based on what you just typed you've done the hardest part already - finding a home. So congratulations! That's so hard for a lot of us right now. A Hard Money Lender would lend you $100,100 for the purchase and the "rehab" work. And that figure is what most investors would use to buy this home. What I mean is that if you bought for $63k and it comp'd out at $143,000 then your cosmetic work should not be over $35k. Part of that reason is that $100,100 represents 70% of the "After Repair Value" (or ARV). A conventional loan can refinance 75% of the ARV. That way you could refinance out of the hard money, with the closing costs of the conventional loan, without bringing any money to the refinance closing. If you want to buy this home with a conventional loan and use your Lines of Credit (LOC) to do the other work then go ahead. No issue with that at all. Some investors do like using other people's money though. Meaning, if you found another amazing deal the next day, and your LOC are maxed, how would you buy that property? Just something to think about. Again, congratulations on finding a home. It sounds like a great deal!

Ramon, if you are receiving a loan the system that a Loan Officer uses should tell you how much in reserves you should have for lending purposes.  It's usually 2-6 months of all of the mortgage payments you have.  Your credit history and the amount of homes you own will determine whether you need 2 or 3 or 6 months of reserves.  From a pratical position having 6 months is ideal no matter what a "system" tells you.  Also, if you are using conventional money and need more reserves you do have the option of using 20% down or 15% if you need to.  20% is better but 15% is an option out there.  Not every lender offers 20% down and 15% down so look around if you need to find those options.  Good luck!