All Forum Posts by: Andrew Zamboroski

I'm looking to purchase my first investment property using the BRRRR method. I found a property that I can purchase price around $63k and anticipate about $30-35k in improvements. My goal is to own the property in my LLC, which I recently setup. Below are the steps I am considering:

1. 1. Use a HELOC on my primary residence, transfer the funds to the LLC bank account to purchase the property and cover the renovations.
2. 2. Find a tenant for the property.
3. 3. Refinance a mortgage with an LTV of 70/30 or 65/35. However, my concern is finding a lending institution willing to provide a mortgage to my LLC with no history.

I’m looking for feedback on my approach and if there are any potential concerns.

Hello, I have a property I purchased with cash and renovated and am now looking to refinance. I have spoken with my bank and feel as though there are better avenues than getting a mortgage with them. If anyone has any suggestions or advice, that would be greatly appreciated. Thank you!

Hi all - I have a traditional 30yr Fannie/Freddie loan with 25% down on a duplex that is currently rented out and cashflowing well. I have forced an additional 30% of appreciation through some redesign and repairs. Are there any loan products I’d be able to cash-out refinance into before 12 months of seasoning? I seem to get mixed messages in my research. Thank you!  

I have a deal in a luxury market where I am looking to renovate a 5,000+ sqft house that is a bit outdated. I think I can buy it at a great price to make my margins work.

I have never used hard money, but this deal requires more cash than I would like to tie down (2mil). I am looking to use hard money for the purchase and my personal money for the reno.

Will hard money lenders lend on something of this size? Any recommendations are appreciated.

Will DSCR lenders work with newbies? I don't have a single deal done yet. I've reached out to a few who need an experienced contractor to co-sign. Is this normal? It makes me think maybe private money to start?? Not sure.
Any advice is appreciated.

P

I'm looking to make two SFH purchases (~250K and ~200K). Can do a DSCR or full doc loans but these will be long term rentals. Adequate W2 income and 780+ credit score. Properties will be bought in an LLC and are located in western Pennsylvania. Is anyone close to or under 7% interest with only 1-2 points? Looking for 80% LTV but can do 75% if rates are much better.

Thanks

It's been a long 9 months but the time seems right to climb out from the trenches and return to the BP community.

During my first few months as a Real Estate Investor, I was on the forums almost daily. Getting advice on BP helped me overcome many of the hurdles as a new investor while I started BRRRing. I was closing as many deals as I could figure out how to get financed. I also managed to creatively acquire two apartment buildings with $0 down about 4 months ago, one of which currently has a water main Leak under the slab and two of the residents have been without water for over a week, but that's another story for another time... 

In December 2023 I started with...

$25,000 in the Bank
823 credit score
3-5% revolving utilization
very little debt
ZERO experience in anything real estate or construction related
Knowledge acquired from listening to 123 audible books over the previous years

14 months later...

$847 in the bank
699 Credit Score
133% revolving utilization/over the limit maxed out personal credit cards
Quite a bit of other high interest debt/loans borrowed during the first year in business
$3,580,000 Appraised Portfolio Valuation
$2,139,400 DSCR Mortgage Debt in my LLCs
$1,440,600 Equity (Appraised Value-Mortgage debt)
8 Remodeled SFRs
1 Converted Remodeled Duplex
2 SFR Remodels currently in process
2 Apartment Buildings - 13/14 units occupied
A little more experience to say the least
234 Audible books in my library

As I'm sure any experienced investor can gather, having the sizable amount of personal debt as I do, supplier house account payments due, PMLs that need to be paid, etc, not having liquidity/any money in the bank is an ISSUE. I currently have 2 vacant houses I purchased just over a year ago listed for sale on the MLS but no bites as of yet. Not the best time of year and we're in an emerging market area about an hour outside of Charlotte, NC.

30Y DSCR c/o Refi's have already been done on every eligible property after rehab / 3 months seasoning.

As more of our properties come up on 1+ yr of ownership, despite losing likely future appreciation of 25-30%+ annually and paying a 5% PPP, I are open to selling some houses off to start paying off much of the high interest debt accumulated outside of mortgages. 

Are there any asset backed loan products that lend in second position or any other forms of financing able to be collateralized by equity you can think of?

So, my business partner and I have run into a little bit of a roadblock. Finally got done building personal credit enough to seek pre-approval (as I have only just turned 21 years old). I have been asking around to different lenders, both Conventional and DSCR, and have been asking what kind of criteria I need to meet in order to apply for pre-approval confidently. To which I have been told that we would need around 25K-30K in liquid assets in order to be approved. This seems ridiculous to me considering that's almost 40%-50% of the loan we are seeking. Any advice from you guys?

We are looking to access some of our Equity to access liquid cash. The majority of our properties already have DSCR loans on them, are tenant occupied, have been owned for less than a year/have sizable capital gains, are in a high appreciation market, may take a while to sell at market price on the MLS.

Are there any loan products, even ones with balloon payments, that would let us access some of our equity in our properties through refinance or a 2nd position loan. Of course if we refinance our DSCR loans we will have a 5% PPP which is not a fun pill to swallow but for some properties with a low LTVs, we're open to it.

We need a loan product that is asset based. Credit is 699. 10x Experience Entry/Exits on HUDs. Currently only getting 70% LTV through ROC Capital on our DSCR loans since my credit dropped below a 720.

I've heard that second position DSCRs may be an option?

Would a Bridge Loan with a balloon payment after 12/24 months be possible?

Below are some highlights of our portfolio

1. SFR   Value $155,000   DSCR Payoff $116,250+PPP
2. SFR   Value $140,000   DSCR Payoff $97,500+PPP
3. SFR   Value $255,000   DSCR Payoff $178,500+PPP
4. SFR   Value $170,000   Bridge Payoff $108,200
5. SFR   Value $215,000   DSCR Payoff $150,000+PPP
6. SFR   Value $270,000   DSCR Payoff $178,000+PPP
7. SFR   Value $170,000   DSCR Payoff $94,500+PPP
8. SFR   Value $180,000   DSCR Payoff $126,000+PPP

9/10/11. Multi Family Apartments 2 Separate Buildings 14 Units + Piece of Adjacent Land.
Valuation $1,050,000+   Seller Financed Payoff $721,500+$50,000 PPP