All Forum Posts by: David Bilandzija

@Dena Zeman Hello, happy to expand.  There are some key differences in your scenario.  

1. Earlier example above was based on a 4 plex. Good news for you is SFRs get a different treatment and do not necessarily need to be leased at the time your apply for a DSCR loan. In terms of getting a permanent/long term loan the properties do need to be rent ready. Your lender of choice will use the 1007 (comparable rent schedule ordered with appraisal) to arrive at a ratio and determine DSCR.

2. In your situation, a permanent loan i.e. long term financing would work right out the gate.  Plenty of options to choose from with varying rates and terms.

3. You can start the process to payoff the loan from your parents as earlier 90 days after you close with up to 75% LTV on the new appraised value.

Good luck, hope this helps.  Feel free to reach out with any additional questions.

@Ethan Hansen Our team's specific focus is investment property lending and we're approved with several of top DSCR lenders nationwide (check our reviews on BP). Since loan programs are always changing its really case-by-case from one borrower/property to the next. I'd be happy to jump on a call and discuss options with you.

@Geoff Regan if the new place you are looking for will be your primary residence then a DSCR loan won't work unfortunately. That type of financing is intended for non-owner occupied/investment properties. You've still got options when it comes to financing an owner occupied purchase though.

FYI, non-permitted = illegal dwelling.  You could be fined for the violation.  Definitely look into the ramifications if you are thinking of renting it out.  A tenant could potentially sue you for renting them an illegal dwelling.

@Alec Esenther Real Estate Meetups are great place to build your knowledge base while expanding your network.  Here's a link to meetup in Milwaukee later today.  Good luck.

https://www.biggerpockets.com/...

@Alon A. 100% financing, none of their own money in the deal...   terms like that are few and far between but they do exist. Experience and a verifiable track record involving a heavy volume of successfully completed projects is the key.  If this is your first deal, plan on doing many more before getting terms similar to the people you have talked to.   Or ask the people you've spoken with what it takes.  

interested

This topic is getting a lot of attention lately.  I first learned about it from a youtube real estate channel.  I did a quick search and discovered that AllTheRooms, the source behind the story, is data analytics company that studies the short term rental market.  No comment on the accuracy or reputation.  Here's a link to their website https://alltherooms.com/  

@Tim Flickinger Several DSCR options available through different lenders in the Chicago market. Finding the best suited option is where an experienced, up-to-date mortgage broker can best serve your needs.

@CJ Berina @Jolene Blazey Excellent meetup, thanks for putting this together. See you at the next one

@Jason K. US Treasury bills are paying up to 5.2% on shorter term maturities.  CDs and high yield savings can’t compete especially given that there’s no state tax on federal bonds.   Safer than any bank or government on planet Earth.  Great place to park your money without any penalty on early withdrawal/sale.  At least earn some interest before you make a bigger investment move.