All Forum Posts by: Dennis Muno

Quote from @Hector Lewis:

Hello,

I found a multi family property that is under $100k. I am already approved for $130k. When I told my lender about the property, they stated they could not finance if it is under $100k.

Does anyone have any suggestions for trying to get this property financed?

Thank you.

Hello Hector, while low purchase price(resulting in low loans) may be a problem, there may be a few local/ national lenders that may be willing to help you. It'd be an issue of finding them. Keep in mind, some lenders may be willing to do this but maybe not in an LLC. Your rate may be slightly higher too because from a lender perspective low loan amounts under 100K could be a little risky especially if it happens that they have to foreclose on.

Quote from @Khalid Ellis:

Hi Biggerpockets.

i just finished my 203k rehab as a live in flip now I am ready to dive into buying rentals now that I have some good experience with rehabs.


does anyone know of any good business loan companies to use to get started?

any feedback is appreciated!

 Hello Khalid,

So you can check some of the lenders here on the BiggerPockets lender page or also do a Google search for highly rated Business Loan lenders in your locality. Either way, it is always best to shop around multiple lenders and compare their rates and terms. I hope this helps

Quote from @Mitra Afsharkhah:

Hi everyone,

I am looking for my first investment property in NJ. Every agent recommends different lenders. I know I must shop around for the best one. However, I wonder how badly it affects my credit every time they check my credit score.

I appreciate any suggestions/recommendations.

Thank you 

Mitra

 Hello Mitrra,

So for credit pulls usually within a 30 day period multiple pulls should not affect you. You also mentioned  shopping around for the best rate. Yes, that is the way to go. See if lenders can do soft pulls instead of hard pulls just for the purpose of determining credit.If you choose to proceed with a lender  however they will need to do a hard pull.

Regarding shopping for a good rate: Brilliant! I recommend you engage a local mortgage broker for you. They usually are partnered up with multiple banks and lenders and should be able to pull credit once and use that information to shop multiple banks/lenders for you and provide you with some options out of many banks and lenders. I hope this helps. 

Quote from @Joe Mayol:

In California what are the best hard money lenders ?

 Hello Joe,

Hard money lenders are many. Your level of experience may or may not factor into the rate you get. Either way, rates will be high but usually interest only payments. I will recommend you compare rates with a couple of lenders to make sure you get the best rate and terms possible even though hard money comes with higher rates but usually for not more than a year. 

Best of luck!

Quote from @Adam Berlinberg:

I have an opportunity through sheer luck from a family friend to buy an apartment complex and not sure how to go about financing. It is 32 units and severely under market rent with a low purchase price reflecting that. After bringing to market rent, would generate around $35k a month in cash flow, before property management fees. I’ve never done commercial financing, and not sure where to start. I know it is much more difficult to get, but with a property like this seems like it could happen. Asking price is $1.5 million, which I was just preapproved for on the residential side for an investment property. Any thoughts?

Hello Adam,
Congrats on coming along what looks like could be a good cashflowing investment. Commercial financing is different from residential but while requirements may vary, some factors could improve your chance of financing: your experience, your cash on hand for closing costs and reserves, zipcode and location of property, and potential profitability of financing. If you(and partners) have a good amount of these factors, it is possible this could be done. Obviously many many lenders will look at other things but having some of the above-mentioned factors will help you

Quote from @Doug Quist:

My daughter and son-in-law have found a mobile home / double-wide trailer near his college and would like to buy it.  They had been looking at a duplex to house hack, but it is WAY more expensive and needs WAY much more work and is also further from school, so the mobile home is more attractive to them.  No offer has been made and they have only just now seen it because it was an "Open House" as we drove by.

How does one get financing for one of these?

Wanted to add to my comments from a few day ago: 

Manufactured home lenders in your locality may be willing tot take a look at this. However, they are not always common to come by

Quote from @Tyler Ingram:

My fiancé is on the mortgage of our primary home, but I am not. We do split the payment but there is no lease or anything legally binding forcing me to pay each month. 

We’re looking at buying an investment property with me being the only one on the mortgage, as I don’t currently have any debt. 

Would the amount I pay her each month count against my DTI, or would it not since there's nothing registered with a credit agency or other entity tying me to that payment?
Thanks in advance! 

 Hello Tyler,

Since your fiance bought the property it should only reflect on her credit and be in her name only, not yours.

No, the amount you pay her every month will not factor into your DTI. Your DTI is primarily calculated by the mortgages/lines of credit/notes/monthly payments that show on your credit report once your credit is pulled. This will not factor into it.

Now, hypothetically if someone had things like child support payments, government liens, that could affect their chances of qualifying since child support payments usually factor into reducing their monthly disposable income. But no, the money you pay her will not disqualify you. It should not

Quote from @Chris A.:

Hello everyone long time lurker here. I'm curious to hear if anyone had success with doing HELOC for rentals/rental portfolio in California. Thanks in advance.

Hello Chris,

HELOCs on investment properties, especially those with more than 1 unit can be hard to find. However HELOAN options may be possible, depending on lender

Quote from @Andrew Martinez:

We are looking to purchase a self storage property in Mississippi. We are looking for a lender that deals with commercial loans and SBA loans in that state. We are having a hard time finding some. We live in Colorado so we are getting sent to various companies that don't seem like they know too much. Looking for any referrals or ideas to get the process started. Thank you in advance. 

 Hello Andrew,

For commercial and or SBA loans, lenders will want to know your FICO, scope of project, plan of what to do after buying property, money in account, and how you will be able to make payments on the self storage property once funded. Your experience investing may also be important

Once you have the above information, lenders who can help will be willing to take a look at your project and consider funding it.

Hello Justin, 

Not all hard money lenders are the same. The best way to know a good hard money would be what is their record on closing fast? What is their reputation? Have they helped a lot of real estate investors? Are the rates they offer reasonable for investors to do their projects?

These are things to consider when looking for a good hard money lender