All Forum Posts by: Darian Richardson

Does anyone have any recommendations for an Atlanta-based attorney that has experience setting up partnerships?

Understood, it seems like all signs are pointing to Non- Qualifying Loan products. There are a few loan products and lenders that offer them. I am speaking with a few lenders and the terms seem very straightforward. A 20% down payment if purchasing, on average 75% to 25% LTV for a re-fi, with a prepayment penalty for at least 3 years for refinancing. Still in the early stages but planning to get started with the process after comparing different offers.

Thanks, for the suggestions @Nicole Heasley Beitenman 

@Nicole Heasley Beitenman Thanks for letting me know. I read through your post, and how did things turn out for you? 

Were you able to move forward with a portfolio loan? 

Hey BP,

I am in the early stages of preparing/planning for my 3rd property to purchase in Q1 in 2022. I plan to cash out Re-Fi my duplex; currently, I owe 159k with an estimated appraisal amount of 290k. I plan to use the cash-out refi capital for a down payment for another property in metro Atlanta. 

I am facing one hiccup that slows me from refinancing. In 2020 I became debt-free and decided to leave my W-2 job and work for myself. This was a significant goal of mine, especially since financial freedom is at the forefront of it all.

However, I am noticing that finding a lender that will refinance my properties in my situation is hard to find.

Has anyone ever faced a situation similar to this, and how did you overcome to refi or purchase a property?

Also, many online resources have pointed me to "asset-based loans," and " portfolio lending," Has anyone ever dealt with any of these loan products, and what companies do you recommend?

Thank you,

@Whitney Hutten

I plan to take care of the renovation cost out of pocket, so the only financing piece the seller will take on will be the property's purchase price. Currently, the property is owner-occupied and not rented. I am familiar with the area, and have another property around the corner, and anticipate that finding quality tenants will not be an issue. 

My concern would be how to go about the balloon note with the seller and to refinance the balloon note well before the maturity end date.  

@Nate Sanow appreciate that. We will be in contact

My Fellow BPERs and BRRRR Connoisseurs,

I need your advice and expertise.

Currently, I am looking into an off-market deal in Lawrenceville, Ga. The property is in need of repair ( roughly $22k in reno), with an ARV of $110K, I am looking to purchase at $70,000. One of the options I am looking to propose to the seller would be seller financing. To make this advantageous to the seller but also equitable on my end, I am thinking of a 2/1 balloon note. The goal would be to refinance after reno, well within the maturity date to payout the seller, and transition to a traditional loan with a lower interest rate.

This would be my first time doing the BRRRR method but also the seller finance option. When it comes to the balloon payment, I have heard more negative than positive about it, so I am a bit conscious about it.

Has anyone ever been in this situation, or has any experience with either seller financing or refinancing a balloon note?

Hey Alex, 

How did this end up going? I am looking into the option of seller financing with a 3/1 ballon mortgage, with a renovation within the first 4 months. However, I am looking to re-financing well before the maturity date. 

Looking forward to hearing from you,

Investment Info:

Single-family residence buy & hold investment in Lawrenceville.

Purchase price: $234,000
Cash invested: $15,000

House-Hack

Single-family home with basement apartment unit 1 bedroom, 1 bathroom, kitchen.

House hacking all bedrooms on the upper level.

Monthly mortgage covered completely

What made you interested in investing in this type of deal?

Single-family with a basement apartment that rents out, with potential to house hack room by room.

How did you find this deal and how did you negotiate it?

Real Estate agent found it and purchased at the appraisal price.

How did you finance this deal?

FHA Loan

What was the outcome?

Currently being house hacked at full capacity, basement apartment, and 2 bedrooms. The monthly mortgage completely covered.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Real Estate -Amesha Mason

Sounds good Tim, looking forward to it.