All Forum Posts by: Deke Belden

Bob, I definitely think that could be an option, but if I wanted to buy, rehab, then rent and hold, I would need an avenue to refi out of a hard loan.  But it's great advice and I'm going to be hitting the pavement seeing what a variety of lenders can and can't do.  worse thing is I hear no, which is just another way of saying "try smarter"

Thanks guys, all great thoughts and I plan on pursuing all of that.  I just needed a little perspective.  Really appreciate everyone taking the time to respond.

I just used this lender last year who said this may be an issue in 2018, but I am reaching out to other lenders now to see what they say. I am co-owner of an S Corp, and right now my reported taxable income is too low for their underwriters to approve my ability to pay. My personal residence is at 85% DTI, so that's obviously working against me. My other property is just under 75% DTI. Yes of course I would not do a hard money loan unless I had a lender lined up to refi. I plan on reaching out to many banks, even if they all say no for now, at least I'll know.

Hey BP members, I've run into a stall. Last year I bought my first investment property, a condo that is currently leased. For my next property, I am looking for a single family that I could do some minor/medium rehab and turn it into a BRRRR.

I'm self employed, and due to how my income is reported, my lender says I can't take out any more personal loans right now. I have the down payment in cash, but that doesn't mean anything without securing financing.

I know I can do hard money, but that is pricey and since it would be my first one I'm sure I'll pay a lot of points and really high interest, and depending on how much they'd lend, not sure that I could make the numbers work, or if I even want to try that right now. Even worse, if I couldn't refi later this year, I would be stuck with a very expensive loan that would likely not be worth the trouble.

Any other suggestions?  

Hey BP members, I've run into a stall. Last year I bought my first investment property, a condo that is currently leased. For my next property, I am looking for a single family that I could do some minor/medium rehab and turn it into a BRRRR. However, due to how my income is reported to the IRS, (I'm self employed at my day job) and what I showed for 2016, (2017 return isn't done yet obviously), my lender has told me that I'm unable to take out any more personal loans right now. I have the down payment in cash, but that doesn't mean anything without securing financing.

I know I can do hard money, but that is pricey and since it would be my first one I'm sure I'll pay a lot of points and really high interest, and depending on how much they'd lend, not sure that I could make the numbers work, or if I even want to try that right now.  Even worse, if I couldn't refi later this year, I would be stuck with a very expensive loan that would likely not be worth the trouble. 

Any other suggestions?  

thank you very much, I'll forward all of this to him

Hey BP community, as a landlord (but very new one) I have been asked a question by a friend.  He moved into one half of a 3 BR duplex a few months ago, and the landlord has been VERY slow at dealing with utility issues and varies other things the whole time.  Yesterday they found mold and rot in the basement and the contractor on site said they'd likely be tearing out the entire rear wall (interior and exterior) as well as a lot of interior wall area of the unit to make the full repair.  My friend doesn't want to have his family have to live through all of that, and he's sick of how the landlord has been treating him already.  Under what conditions could he claim that the landlord isn't fulfilling his lease obligations?  He really wants to avoid bringing a lawsuit due to the expense, time, and headache involved.  If the landlord would just let him out of the lease he'd be elated to just move on.  Any advice would be very welcomed.

Hi, just over two months ago I closed on my first deal.  Two bed two bath condo in downtown KC MO.  I was able to buy at a small discount and quickly get it rented with a property manager and am cash flowing $170 a month, I don't even spend 15 minutes a week on it.  This first deal is going just as planned, and it feels great to actually be in the game now!  Ok, here's my question:

I don't really have enough $ to do another deal right now. I can partner, use hard money (I could cover the origination fee), or some other creative method. Also, I found out through SOFI that I can get up to 100K at 9.5% on a 7 year payback. I could use this to make down payments on multiple properties, or I could do a downpayment plus rehab costs on any variety, SFH, multi, etc. Of course I could do a flip and if it didn't sell rent it (Brandon Turner method lol).

However, I would be 100% leveraged if I used the personal loan from SOFI to cover any down payments, plus what I'd owe on the mortgage. May be tricky to get a property that would cover the loan payments, personal and the PITI of the other loan, plus Capex, management, and all the other expenses.

Who out there has in some way financed 100% of a deal, or borrowed a personal loan like this?  How did you make it work, and is this a strategy you would repeat?

Deke

My concern wasn't you short changing your realtor, but rather risking your name being "sullied by association" by the seller short changing his realtor.  It may not be fair, but sometimes your name can be tarnished by another's actions simply because you have done business with him.  Unfair (and unfounded) accusations can be difficult to overcome.  I think your realtor would probably be ok with walking if it was explained to her, but realty is a small world, you never know how the seller's agent could react.  Ask yourselves "if I were the seller would I be ethically ok doing this?"  If not, is this a guy you want to do business with?

I've been lazy about networking on BP. I need to change that. What I'm saying is that the seller could tarnish your name by association among other realtors even if you've done nothing technically wrong. Remember everyone can find out who the new owner is (you). But you're right maybe there is a way for you to navigate this one. I just don't like being involved with people who may not be on the up and up, even if I'm not the one they may be short changing.