All Forum Posts by: Andrew Zamboroski

We have one loan for my house under my name, another loan for a rental property under my wife name. So if we want to buy another rental property who do you suggest to get the loan? Myself or my wife? We have same credit score/history. Any suggestions/opinion will be appreciated.

Regards

Hey there, nice to see someone in my local area! Are you looking to use a conventional loan? If so, who has a better debt to income ratio to consider? Or as others have said, you could use other financing and buy in an entity.

happy Friday!

1 Vote

Detroit, Michigan

Quote from @Allen Wu:

Hello,

Curious. I’m buying a primary home and all lenders pushing the 10 year fixed loan (variable after 10 years). Why are lenders pushing this? I wanted a 30 year that will cost 0.50% more but lenders all pushing me to 10 year and stating rates will come down and will refi.

Any reason why they are strongly recommending this?

As Erik mentioned, normally banks that hold their own notes are the only that can push a good ARM product. You can try this site to find a local mortgage broker:

https://mortgagematchup.com/

1 Vote

Quote from @Josh Duncan:

Hello, I have 1 residential rental currently in my own personal name. I have just created my LLC a last week. I have an opportunity to purchase 2 homes that are side by side that need a little bit of work (minor stuff) for basically the price of one in my area. I feel these would make an excellent next move for me. Now I just need the funding......

Thanks.

Stacy’s comment has a lot of excellent info! If you’re looking for funds to acquire and rehab, a fix and flip loan may be ideal. You could then sell or refinance at the higher after repair value. It sounds like you are already coming in with equity which is awesome, kudos to you there! If you want help or to discuss a fix and flip option, feel free to connect.

0 Votes

Quote from @Armand P.:

Hello,

I spoke to an investor/wholesaler who purchased a flip property in Texas sept of 2023 and didn’t have the funds at the time to get begin rehabbing. He is looking to borrow $50k with 10% interest. He already has the $50k with the hard money lender however they will only release funds once first phase of the project is completed.

In order to secure my investment will a promissory note suffice or do I need a deed of trust or something as collateral in the event I don’t get my $ back?

Is it normal to have private money funds get wired to individuals business or personal account since he already has possession of the property?

Thank you

Armand

Armand,

Remember, as a private lender, you only ever actually make money if you are repaid. As others have mentioned this is a lot of risk with minimal upside, I am not sure it’s the best investment in my opinion.

0 Votes

San Jose, California

Quote from @Rachel Waldorf:

I have around 100k in savings that I would like to put towards the purchase of an investment property in Rochester, NY. I’m looking for income generating rental properties that cost under $90,000. What are the best financing options for this? Proof of income will only be the property’s current rental cash flow. Should I take out a secured loan using my savings account as collateral? Or is there a better option? (I also would like a loan that doesn’t require a high down payment).

This sounds like a great situation for a DSCR loan. The loan is based on the income of the property for qualifying purposes (in addition to credit score) versus your personal income. A great option if you have money but no income.

1 Vote

Upstate New York, New York

Quote from @Connor Castillo:

Hi all,
The highest interest rate we have on money we are borrowing is one of our investment homes. We have a 7.125% rate on a 250K loan. Does it make sense to pay it off instead of investing in another property because it’s already proven to be successful?

Rent: $4,250/ mo

Monthly expenses (including management): -$600

Monthly Mortgage/ taxes/ insurance etc: -$2,550

thanks

It depends, what is more important to you: having those funds liquid or in other properties, or having more cashflow each month?

0 Votes

Quote from @Anthony Rondinelli:

Hi,

If I want to maintain a healthy DTI for a primary residence conventional loan in a couple years, what should I be aware of, or what strategies must I employ? My current W-2 and rental income(4 duplexes in my name) have me at about 35%DTI, I am about to add another multi-fam property and it would bump my DTI to 46% even though it cash flows $2000...Do people simply start buying in LLCs(DSCR) at this point for this reason?

Any advice appreciated.

You will want to ensure you are claiming income on your return. While losses help offset taxes, not being able to count that income towards the mortgage can hurt you when purchasing something new.

1 Vote

Quote from @Joseph Fenner:

I am looking to house hack a property out of state with an FHA loan within 4-5 months. What should I know about using FHA loans for out of state investing?

What complexities should I expect and what else should I know regarding the financial side?

When you say out of state, are you moving to the new state? Or are you trying to buy the property as an owner occupied primary residence while living in another state?

0 Votes

Quote from @James Yang:

Hi guys!

This would be my first post at BP. I am in the process of purchasing my first house (woo hoo!) and need your help figuring out what to do with my loans.

Purchase price of $1.1mil, and I am planning to put in some work into it ($200 to 300k) since the house hasn't been renovated for over 30 years.

My question to you guys is:

1. Should I put down 20% as a general rule? or should I put down as low as possible?

2. Let's say the appraisal comes in at a good value after repairs/renovations, should I refinance? or just leave it as it is. I don't think I immediately need cash, and even I do cash out refinance and get some cash back, I dont' know if it makes sense to get a larger loan amount and higher monthly payments.

3. does amount of down payment matter if I end up doing/not doing cash out refinance?

I would sincerely appreciate your help!

thank you very much guys

Congratulations! Some great advice already on this thread. The truth is, it’s based on a multitude of factors and ultimately comes down to what makes sense to you. In my personal opinion, it depends on whether or not you plan to refinance and if the rehab you do will substantially increase the value. If you do refinance post-rehab at a higher value, it could help cover any lack of downpayment you put down on the purchase. By saving cash, you’ll have more money for rehab.

either way, enjoy the journey!

1 Vote

Quote from @Ketra King:

Hi all. How are investors funding the purchase of land to build on?? I’ve read that lenders typically don’t lend on land due to the risks. Are they really using their own cash?? Also, how are they keeping the land purchase from impacting qualifying for construction loans??

Tyler brought up some excellent points!

We do have a lot of builders who purchase the land cash. They will then use equity in the land towards their build costs when financing for construction.

I hope that helps!

1 Vote

All Forum Posts by: Andrew Zamboroski

Andrew Zamboroski has started 0 posts and replied 276 times.

Post: Loan for second rental property

Post: Lender recommending a 10 year fixed loan

Post: Have potential deal, need funding asap.

Post: Private money lender

Post: The Best Financing Options For Zero Income Borrowers With High Savings

Post: Putting money towards loan

Post: Rental properties affecting DTI

Post: How does the financial side work when house hacking out of state with an FHA loan?

Post: Need your help! Buying my first house and need advices on financing.

Post: Financing Land Purchase and Construction