All Forum Posts by: David Bilandzija

Hello Becky, this is doable.  Options are limited but I have a source that can help with permanent financing, i.e. 30 yr fixed, interest only 30 year term.

Since you have several properties, consider packaging them together in a portfolio loan.  Generally speaking, you'll only be able to blanket properties within the same state but its a great option and rates and terms are very competitive with 30 year fixed financing available.  

@James Daley You'll need some 'skin in the game' on a deal like this. I wouldn't focus to narrowly on the possibility of 100% LTV/LTC given your experience level. Go in with the mindset that a down payment will be needed for the acquisition.

Take advantage of the next best thing... Investors in your position can perform a fast rehab and in as little as 90 days refinance out of the interest only fix and flip loan and into a DSCR loan, 30 yr fixed product in the 7-8% range - cash out is available up to 75% of the appraised value at the 90 day mark.

@Mark Walker I honestly think you would be better off doing 5 individual loans.  Keep your flexibility by not encumbering them together.  Also,  when I handle a "multipack" of files the borrower receives a discount on total fees.  Shoot me a DM if you have any additional questions.  

@Mark Walker Another thing to be mindful of, and this is of course assuming that your properties are in Alabama. Portfolio loans generally have higher minimum loan amounts. I work with several nationwide wholesale lenders that offer these loan programs but as the previous poster pointed out, they come with different features and restrictions. I do have a source that will consider loan amounts as low $100k with a minimum asset value of $50k per property. Its also a no ratio DSCR program. I'm happy to share additional information or answer any questions.

@Victor Nguyen Try attending local real estate meetups.  The chances are high you will meet other house flippers that can offer insight.  Lean on their experience.  

@Wayne Doucet Absolutely. Condos are eligible properties for DSCR programs. You'll want to find out in advance if the property is a warrantable or non-warrantable.

@Miranda Yanez Are you seeking an equity partner for your projects or a capital source for new financing?

@Anthony D'Angelo I'm an active mortgage broker that focuses primarily on investors most of which happen to directing their attention to out-of-state properties.  Tennessee comes up quite a bit in my conversations with investor clients or when I'm out networking.  Some of pros that I've heard... 

* "It's a red state (land lord friendly)"

* "rent to value ratio is attractive"

* "growing populations, job growth and migration" 

I realize these remarks can be construed as anecdotal but they come up with frequency nevertheless.

@Ashley Guerra You've given a lot of thought to your plan and strategy. A few things to point out as your hear recommendations for alternative financing, i.e. DSCR loans. Keep in mind, that general underwriting guidelines disallow first time buyers from these types of programs. Don't let that discourage you, and certainly don't think that your options are then limited to conventional financing. I have advised clients in your exact position. The work around I generally recommend is using a hard money bridge loan. The downside is cost and leverage. You may not be able to get a high LTV loan with hard money but the requirements to get financed will be less rigid. The tradeoff is you'll have to bring a higher down payment. You can always refinance with a DSCR loan after 3 months of owenrship at the full appraised value. Another idea, purchase the property with a partner. Perhaps a family member, who owns real estate can partner with you to get around the first time buyer restrictions with DSCR lenders.