All Forum Posts by: Brian DeLuca

Quote from @Chris Seveney:

Quote from @Brian DeLuca:

Quote from @Chris Seveney:

Quote from @Brian DeLuca:

Hello, I am looking for funding to purchase more multifamily properties. I started out with a duplex (Drexel Hill, PA) and purchased a fully furnished quad (Berwick, PA) that is listen on AirBNB and other sites. This property currently brings in double the mortgage payment. 

I am a veteran, there for both my mortgages are VA mortgages. Great loan products but the downside is that I have very little equity to take out in the form of a HELOC or cash out refinance. There for this is not an option. I work a W-2 job as a respiratory therapist but it will take me longer than I want to wait to build up enough money to purchase another multifamily home. I stay away from single family homes.

I am currently an active investor because I work 3 12-hour shifts affording me to spend majority of my time managing my properties (I have 4 days off from my W2). I want to scale quickly to be able to reduce my time at my current job. I am having trouble getting enough business financing because they claim that real estate is a risky business, and most places will not lend money for this sector. I did get an offer for a cash advance, but it was only for 10k (obviously not enough). I am looking for an investor or anyone that knows or wants to help me finance my next deal.  I can get the cash back to you in short period of time once the property is closed on. 

My recommendation is to start calling lenders to see who would consider financing you. I would start with scotsman guide and seeing lenders in your area. you can also go to local REIA events and see if there are other private lenders, but realize your cost of capital will be a lot higher.

 I leave talked to many many lenders. Non of them will go less than 10% ltv. I need a parter that will fund my downpayment 

 you are not going to find someone else you bring in a partner and give up equity or have substantial equity in your other assets that can be used as collateral, but if you do not have down payments then maybe sell your properties to scale - otherwise continue to save. Banks are very cautious today about borrowers being over leveraged.

As I mentioned above, they are VA loans with little to no equity in them so that is not an option. I am asking here for a reason because some people are willing to write up loan terms to fund a downpayment and we both win. I'm not looking for traditional ways to this otherwise I would have already had the funds. I need funding outside the generic boxes. Im open to all and any offers if anyone wants to throw something at me

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Quote from @Chris Seveney:

Quote from @Brian DeLuca:

Hello, I am looking for funding to purchase more multifamily properties. I started out with a duplex (Drexel Hill, PA) and purchased a fully furnished quad (Berwick, PA) that is listen on AirBNB and other sites. This property currently brings in double the mortgage payment. 

I am a veteran, there for both my mortgages are VA mortgages. Great loan products but the downside is that I have very little equity to take out in the form of a HELOC or cash out refinance. There for this is not an option. I work a W-2 job as a respiratory therapist but it will take me longer than I want to wait to build up enough money to purchase another multifamily home. I stay away from single family homes.

I am currently an active investor because I work 3 12-hour shifts affording me to spend majority of my time managing my properties (I have 4 days off from my W2). I want to scale quickly to be able to reduce my time at my current job. I am having trouble getting enough business financing because they claim that real estate is a risky business, and most places will not lend money for this sector. I did get an offer for a cash advance, but it was only for 10k (obviously not enough). I am looking for an investor or anyone that knows or wants to help me finance my next deal.  I can get the cash back to you in short period of time once the property is closed on. 

My recommendation is to start calling lenders to see who would consider financing you. I would start with scotsman guide and seeing lenders in your area. you can also go to local REIA events and see if there are other private lenders, but realize your cost of capital will be a lot higher.

 I leave talked to many many lenders. Non of them will go less than 10% ltv. I need a parter that will fund my downpayment 

get familiar with VA loans. They are amazing. Don't ever let anyone tell you that you can't have more than one VA loan. If they tell you this get another lender or broker. You can use a Va loan for up to 4 units. Also, you there is a occupancy requirement but it can easily be extended out because your active duty and possibly overseas would null that but not totally sure on the last part.

Hello, I am looking for funding to purchase more multifamily properties. I started out with a duplex (Drexel Hill, PA) and purchased a fully furnished quad (Berwick, PA) that is listen on AirBNB and other sites. This property currently brings in double the mortgage payment. 

I am a veteran, there for both my mortgages are VA mortgages. Great loan products but the downside is that I have very little equity to take out in the form of a HELOC or cash out refinance. There for this is not an option. I work a W-2 job as a respiratory therapist but it will take me longer than I want to wait to build up enough money to purchase another multifamily home. I stay away from single family homes.

I am currently an active investor because I work 3 12-hour shifts affording me to spend majority of my time managing my properties (I have 4 days off from my W2). I want to scale quickly to be able to reduce my time at my current job. I am having trouble getting enough business financing because they claim that real estate is a risky business, and most places will not lend money for this sector. I did get an offer for a cash advance, but it was only for 10k (obviously not enough). I am looking for an investor or anyone that knows or wants to help me finance my next deal.  I can get the cash back to you in short period of time once the property is closed on. 

@Stacy Voss To answer your question, it really depends on the situation. It doesn't really make sense to have two of these loans open with balances, because that just dilutes your cashflow. However, if one is paid off, it might not be a bad idea to open another so you can access the equity on that property as well. Being that the rate is slightly lower on primary residences, a lot of clients look to maximize their leveraging off that line first. 

 I do not agree with you at all here. There is more than one reason to take this loan. Yes for equity but also to pay significantly less in intrest and pay it off significantly faster. You seem t0 negate that part. This is significant for those two factors. This is by far bette than the conventional you mention. You say it's a higher intrest rate but its amortizing vs simple intrest. A higher simple intrest is better than a lower amortizing intest.

Can you show me your numbers

Quote from @Dennis Muno:

Since you are travel nurses, I am guessing you are paid 1099. There are still options for you. There are many lending options to proceed:

1. DSCR loans: Your personal income is not used as proof of income. Rather if the property monthly rental income can cover the monthly Principal and income, taxes and insurance, and sometimes HOA fees(PITIA). You get qualified usually based on credit and DSCR ratio, with other lender specific requirements.

DSCR ratio= Monthly rent/PITIA. Usually a ratio of 1 and above is good. 1.2 and above with a 660+ FICO will get you better loan pricing. Some lenders can do DSCR ratios down to 0.75 but note your loan pricing will be crazy high. DSCR loans usually have interest rates 1-2% higher than residential interest rates. Keep in mind it is possible to buy down your rate usually 2-3% as long as that does not fail the points and fees test. Ask a lender about that.

DSCRs will usually be used for if the property already has tenants and is cashflowing. Some lenders will lend based on estimated rent but your pricing will be higher. This loan is not used for rehab. Can be used for purchase, refinance, cashout refinance.

2. Bank Statement loans: Even better, and will get you better pricing than DSCR loans because you show proof of income, meaning lesser risk to lenders. Lenders will usually qualify you based on your Bank statements for usually 6 mos -2 years. Check with lender for pricing. Even better for self-employed 1099 workers

3. 1099 income loans: Like bank statement but your 1099 income documents will be used to assess risk and qualify you.

4. FHA loans like you said are possible but get a lender to check FHA guidelines for self employed/1099 income earners before you proceed.

5. Hard money/private money to buy property and do some rehab. Once rehab done and property is fixed, you can refinance to either a DSCR refinance or bank statement refinance to get lower and reasonable monthly payments on property. For DSCR once property is cash flowing you won't have to show income just rental income vs PITIA.

 I'm a traveling Respiratory Therapist for over 2.5 years now and have never been paid using a 1099. It is always a W-2

well first off when purchasing a home, lenders will make you get a home inspection. You do not do this until the offer is accepted. (you can waive your right to a home inspection but I would NEVER do this. This is fairly simple process to do. You search online and get multiple quotes. There is a pretty large gap in what people charge. 

There are cheap ways to advertise and manage properties passively online. If somebody has an issue they raise the issue through the app depending on what company, you choose. Then you can search for somebody to go look at the problem. I use thumbtack for this. 

When you say that you will cash flow 100, does that include what you will be paying for utilities? also take into consideration what you will have to pay when you move away in terms of lawn care. You can make a stipulation that the renters are responsible to maintain the yard work. 

also consider if your renting room, then you will more than likely have to furnish the house. 

Quote from @Steve Vaughan:

Quote from @Brian DeLuca:

Quote from @Steve Vaughan:

Quote from @Mike Dymski:

If you won't use leverage, I recommend syndications or some other passive investment such as the stock market.  Real estate is way too much work to not achieve outpaced returns and you will not get that with unlevered real estate.

Easy to get dividends alone of 7%-11% in utility or communication stocks or reits today.  
Risk and effort adjusted, publicly traded paper equities are multiples less risky and less hassle than buying some out of area RE at retail with little knowledge or experience.  

Also less ROI. Most people with money will say it's not because of the stock market but they have money because of realestate 

Yeah, real estate has created more wealth than any other asset class- for knowledgeable investors that use leverage. 

 Little knowledge, no leverage, already have the $?  Now we're talking about ROE and that's safer and easier and much less hassle to earn with paper securities.  

Yes correct. I hope to get to the day where I just pay cash for most of the buildings but I dont think I will get there becaue I'm trying to multiple my properties each time I sell