All Forum Posts by: Clayton Silva

100% We always recommend conventional first until you can no longer qualify for those. Better rates and no PPP makes them the best options (generally). Unless the borrower is self employed and takes a lot of expenses to show lower income on their returns then it usually makes sense to pay a couple thousand a year in higher interest (you can pay like 4,000 a year in additional interest for DSCR if you are saving 30+k on your tax bill kind of math lol)

 2nd position? I have seen those on 1st position, but not for 2nds.  Curious who those are funded with?

DSCR can cash out 80% even on 2-4 units, but I was referring to OP's request for HELOC on investment properties

2nd position HELOCS on investment properties are typically capped at 70% LTV and have rates ranging from 9-11% just a heads up unless you use a local credit union where you have cash on deposit with them. Figure and NYFTY are easy automated HELOC programs with super quick closings (I did one for a client that funded in like 72 hours from loan app). Neither one allows for ownership in LLC which is frustrating and Figure only does SFRs.

Hard to say one way or another without knowing your personal finances, goals etc., but it seems like a good deal.  I had the lightswitch moment after investing in NC for a while and I would get ok cash flow, but the properties I owned all doubled in value in about 5-6 years and I realized I could appreciate my way to financial success much faster than I could cash flow my way there.  But every person invests for different reasons and goals.  Time horizon matters a lot too, talking to a client in their 60's wanting to retire is very different than someone in their 30's looking to build and accumulate wealth.  I like fitness and health and just like those two things, real estate investing is NOT a "one size fits all" solution.  

I am familiar with the area, happy to help in anyway I can, a lot of stuff like insurance or tertiary questions I can probably get you plugged in with someone more knowledgeable on those things.  I tend to stay in my lending and financing lane lol

 Good question, they seem to be all over the place depending on the area and I am not an insurance specialist, I think typically 1.5-2x normal rates but I could be off by a bit

 Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk.  Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.