All Forum Posts by: Brittany Minocchi

Personal guarantees are EXTREMELY common. Your other questions are better suited for an attorney to avoid misinformation. As far as timeframe, anywhere from 21-45 days depending on how quick a borrower gets their docs to underwriting, how long the appraisal takes, etc. Why is it taking 3 months?! 

Hey Grace! 

When you say seasoned money, what do you mean? Typically seasoning means that the funds have been in a bank account for a set amount of time (usually 60 days), so ANY lender should love that....I thought maybe you meant un-seasoned funds? Feel free to reach out, happy to help! 

What is your current rate and what are you being quoted? What are the fees? Not all lenders are created equal. There are seconds in the way of HELOANs and HELOCs for investment properties, but they aren't cheap. Like Devin said, double digit rates and you could still have fees similar to a first position mortgage. Most (not all) HELOCs require that the property is titled to an individual (not LLC) and are full doc, meaning your employment history, income, DTI etc will be factors.

 Thank you for the clarification! Not all lenders require that you own a primary residence - some will allow you to be a renter or even living rent-free. It varies by lender. 

Is there a separate lease for each individual unit? Feel free to reach out if you'd like

Occupying a property that has a DSCR loan would be mortgage fraud and you/the lender would put yourselves at risk for hefty fines and/or jail time - DSCRs don't allow for owner occupancy.

No way to say for sure since each lender is different and I have no idea of the terms you need or your FICO, but it is typically the prime rate plus a couple of points. Right now, that would put you around 8.5-9.5%. SUPER rough estimate. 

Hey Jonathan!

Welcome to BP. I have a few properties and am also a mortgage broker, happy to answer any questions about general investing or financing options. Feel free to connect!

Hey Jordan!

Yes, you'd be doing either delayed financing or a cash out refinance depending on the timing. The only instance where it might be more beneficial to do it this way vs. getting financing right off the bat is if you need to be SUPER competitive with your offers in your market. Otherwise like Nicholas said, you're paying some unnecessary costs and will likely need to keep more equity in the property with a refinance than what you would've buying it with financing right off the bat.