All Forum Posts by: David Dye

Hey Bo Kim Yea, we still have them. I'll shoot you a colleague request so we can connect! Best, David

Josh Garner It depends on your situation... if you want a true no doc loan, the interest rate is going to be high, I guarantee it... if there is a way to make it with using your rental income, as reported on tax returns, you most likely can make it work with a decent rate. Shoot me a PM and I will get you to someone who can help. All the best, David

Beverly Joseph I am a little biased as I do loans, so fair warning... With money as cheap as it is... it's hard not to finance these things out. If you have enough cash to pay cash, then you have enough to do a 50% loan to value on two properties. You are using the banks money to improve your position and you are actually growing not just pulling cash off each month. Now you don't need to go fully leveraging. But a good 50% LTV will get you good rates and you will have plenty of "skin in the game." The only real way to grow in this business is leverage. Hope this helps!

Ryan Tuleja Here are the Fannie/Freddie guidelines for investment down payment: Investment 1 unit: 15% Investment 2-4 units: 25% Primary depends on if you go conventional or FHA and your size of down payment will determine which product is more beneficial. Hope this helps! David

Adam Pickett Unfortunately, you cannot have an FHA loan and have the property be in an LLC. You will find yourself in a lot of trouble... It is a Fannie Freddie guideline, not a bank guideline.

Jason Ma On FHA loans, mortgage insurance is charged in two ways. The first it the up front MI. This is 1.75% of the loan amount and is generally just rolled into the loan. The second is the "monthly MI." This is either 0.85 or 0.8 depending on your LTV (FHFA was about to lower it but on January 20th they canceled the change). This is calculated as an annual rate but broken up over 12 months (100k x 0.85% = $850/12months = ~$71/mo). Does this help? Cheers! David

Christopher Abernathy With a mid 600 FICO, it is going to be very costly to "buy out" the PMI (this is essentially what it happening when you say no PMI under 20%... You pay for it in the rate). With a low down, your best option here would be to get an FHA loan and build from there. Slow and steady. Yes, it is true there has recently been some changes recently in some of the down payment assistance programs. That said, I would not count on them or use them. If at the current time you are unable to put 3.5% down, you should probably wait a little bit and save up some more. These investments at 3.5% are already risky enough as you won't have much equity in the deal, any less than that would not be a very responsible investment. Anyways, please feel free to PM me if you want me to go into more detail. Would be happy to give you more of my take on the financing side. Hope this helps! Cheers! David

Sebastian Marroquin Good Question. If I were your friend, I would not get too eager to purchase out of state. As an agent, I am sure you know the problems that can arise with a rental and how helpful it is that he be within driving distance. I see two options here: 1) Take $30k of that and put 15% down on a decent $200k SFR out in the Lancaster/Palmdale area. Strong rental market, lots of newer properties for cheap, drivable within an hour or so, etc. it won't cash flow him more than a couple hundred after PITI but he will be building equity and learning the ropes of rentals. 2) If he has been getting his 1099 income for two years, he could house hack here in the main part of the county with a low down loan (conventional, yes you can get really low down conventional even without MI, or FHA depending on the house, credit, etc). While he may not cashflow on this immediately, the future potential would be greater than option one. Hope this helps! Cheers! David

Darn! Wish I would have seen this earlier.  Would have loved to come out and see your work/network!  Hope the meetup went well. :)

-David

@JAMES CASTRO

My apologies for the ambiguity.  I am referring to the Antelope Valley/Lancaster/Palmdale area.