All Forum Posts by: Daniel Infante

@Daniel Infante. You're unlikely to be able to borrow 70-80%, you'll probably have to settle for less. Not leveraging to the max is not a bad idea. It may limit your returns but it also reduces risk. Less leverage leans more toward your dad's way of thinking. You're looking at non-conforming or non-conventional financing. Terms (LTV, interest rate, ARM vs fixed, etc) will not be as good but may be acceptable. I suggest you find a mortgage broker with knowledge of non-conforming and commercial lenders. Some people prefer to go straight to the lender but I've found that a good broker is valuable and earns his/her money. Search for a broker who markets to investors, or ask a realtor if they know such a broker. The broker will collect your information, give you an opinion of the type of lending product you qualify for (or let you know you don't qualify), shop you out to lenders, and present you an offer. This process is slower than conventional lending so be patient.

Jeff, Thanks for your reply! much appreciated. I will definitely start looking for mortgage brokers. I'm currently still in the absorption phase right now. Listening to a few podcasts a day, reading about 3-5 hours, scanning properties, etc. But my plan is to start being much more active in the new year. I'm sure your advice will help me out a lot, thanks again!

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Originally posted by @David Gotsill:

@Daniel Infante - Are you in Tokyo? If so, there's a monthly BP meetup on the 3rd Thursday of the month in Roppongi (where else?). You should go, if you can. Although attendance varies widely each month, many investors there invest in the US. Let me know if you can't find the info for the meetup, I can share it. I'll be back in Tokyo this month, but will unfortunately miss the meetup.

There are also other active Japan-based investors on these forums, I'd recommend you search them out. I was in Tokyo for a bit, and would be happy to connect and introduce you to a few other investors, if you are interested.

If you're going to target BRRR properties, I think your best bet would be to team up with an agent and/or PM, and let them recommend lenders to you. That process worked for me and my partners.

Best of luck, and don't hesitate to post questions.

David, I didn't know there are groups here in Japan. This network is crazy! Unfortunately, I'm in Hiroshima most of the time, its a bit of a way from Tokyo, but I may think about going sometime soon. I would totally appreciate the introduction to other investors here. When will you be coming to Japan?

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Originally posted by @Guifre Mora:

Originally posted by @Daniel Infante:

I would just like to add that I am a citizen and resident in my local area, I just spend most of my time out of country and don't have the income like a w2 or anything to qualify for a loan in the traditional way.

As long as you have a us bank account that's all you need. The lender will look at the DSCR of the properties and can do 75 LTV cash out. Being over seas not an issue.

Guifre, Thanks for the reply! I really appreciate it! So you think lenders would accept DSCR on a small multifamily loan, or would I have to get a commercial loan for that?

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Hey Everyone,

This is my first post in BP.

I started listening about 5 weeks ago awhile exercising and it has opened my eyes to the possibilities in real estate investing. I own 2 properties free and clear which I have had for about 5 years. My dad is a conservative investor and he always told me that I should buy with cash only. But after reading these posts, reading about 12 books, and listening to over 100 podcasts, I'm convinced that there is a better way. I really love the BRRRR method and I was going to try to apply that, but then I go an idea: If I can cash out of these properties at 70-80%, I should be able to get about 160k, give or take. Instead of using that to buy properties with cash, why shouldn't I use that as downpayment on investments? As long as I buy under market with built in equity I shouldn't spread myself too thin.

But I actually live overseas (Japan) and I can't really use my income to get a loan in the US. I have heard that you can get loans based on the income of the property you are purchasing. Could anyone tell me what this is called? I am hesitant to just call up a lender and ask them what kind of loan that is. I at least want to know what its called and how it is generally done before approaching anyone.

If anyone could help me out I would really appreciate it!

Thanks in advance!

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Hi Jake! Im in kinda the same situation. I have two lots, 3 doors in Dayton with about 200k equity (all bought with cash). I kind of did them both with my dad who favors cash positions and i was a passive investor because ive been busy finishing grad school. But now im reading tons, developing business plans and planning to start leveraging. I am thinking of the HELOC just because it seems easier to do for cash deals and it will let me move quickly when i need to. Although I will try to push for owner financing if I can. No reason for the bank to get that extra income, might as well do it without the banks to keep me away from the 10 mortgage limit.

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All Forum Posts by: Daniel Infante

Daniel Infante has started 3 posts and replied 26 times.

Post: obtaining loans based on income of the property

Post: obtaining loans based on income of the property

Post: obtaining loans based on income of the property

Post: obtaining loans based on income of the property

Post: obtaining loans based on income of the property

Post: 150k in equity in first home