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All Forum Posts by: Dennis Muno

Dennis Muno has started 1 posts and replied 324 times.

Post: Primary home or investment

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79
Quote from @Brooke Parker:

We have paid off high interest debt and have money for a down payment but interest rates are high as well as the price point in our area. Would you buy a primary home first here using all of our money and try to turn it into a rental later or rent here for now and ise our funds to invest out of our area to start cash flowing? 


 Hello Brooke,

Like the popular saying goes, cash is king. You could use all your money to buy the property full cash, but would you have money for other things like closing costs; other emergencies that could come up and even other investment property opportunities if they come up? You could invest using some of your money as downpayment  on an investment, get it cashflowing and then get the return on investment while keeping some of our money.

Best of luck to you!

Quote from @Arian Mustafa:

A deal has come across my desk that I am hoping to get some advice from the BP community. Older gentleman who has for decades owned and accumulated class A properties, all in the same town north of Boston. I have lived in this town in the past and am very familiar with it. Excellent area, great schools, and desirable for renters who are willing to pay more to live in an upper class zip code. 
This owner and his family have accumulated 60 units, a total of 14 properties. He is looking at around $16-18mil price point but is open to reasonable offers. 100% rented, all rents up to date, and pretty close to market rents, with some room for increases. 

So far I have tried to stay in my sweet spot of 3-fam and 4-fam properties.  However for something like this deal to come around, this type of portfolio does not come around often. So naturally I want to at least explore the idea and see what I would need to do to make it work. 
Main issue obviously for me is that I do not have the 25/30% down payment for a commercial loan. Thats not happening. For anyone who has gone through this path before or has knowledge, I would love to hear some ideas of how to approach this seller.  Would love to pitch this seller a seller financing option. I am willing and open to listening to any and all suggestions. 

Also how does one analyze this type of portfolio?  Without knowing the property condition for each of these buildings, how do you go about analyzing and seeing what a realistic purchase offer should be based on current rent rolls, rent ledger, location, condition, potential renovations needed, and potential rent increases.


Thanks in advance all!!!


 Hello Arian,

Have you considered private money lending? Each private money lender is different and so their downpayment amounts will be different. I think this could be a way to buy the property and do some rehab if you need to

Post: Heloc to buy Airbnb in PR

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79

Hello Matt,

While nothing is certain, AirBnB has become much more competitive because well so many people have been doing it, increasing competition.Also, many state localities have started banning them. 

The second option is also reasonable. Try to run numbers before you proceed. Best of luck to you!

Post: Fha and conventional loans

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79
Quote from @Brittany Minocchi:

You aren't limited to a certain number of times to use an FHA loan, you just can't have more than one at a time (in most instances). So, if you get a conventional loan and decide to buy another primary residence after a year, you should be able to get an FHA loan.

Truth! Well said, Brittany. While over a lifetime you could have multiple FHA loans, you generally can't have more than one at a time. Here's some info on that I found on the internet, Samuel:

https://www.cardinalfinancial....

I hope this link  and the info in it answers your questions

Post: Purchasing my first home in Austin!

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79
Quote from @Clayton Barker:

BP community,

I’ve been renting for the past two years after finishing school and am now in a financial position where it makes sense to start considering purchasing a primary residence. My thought process is that I can build equity paying down the mortgage vs. paying rent every month (being an avid listener of BP podcasts really gets you thinking). I have not formally started working with an agent but based on my searches on Zillow and similar sites it seems that the Austin market has really started to come down compared to prices say 2 years ago or so. At this point in my life, I’d like to stay close to the city, so I’ve been looking at townhomes and condos in my price point on the south and east side of the city. Ideally, I’d live in it for a few years and then turn it in to a rental once it comes time to purchase a larger home.

I do have a couple questions and I'd really appreciate any insight! Does anyone have experience operating a condo/townhome as a rental in Austin? I know that an HOA poses some additional challenges in terms of rules and regulations. If I start working with an agent, would they have access to the HOA information? Are there certain items to look for in the CC&Rs? Is it possible to request financial information as well regarding the HOA's reserves and what not? I realize I've asked a lot of questions, but I just want to get a sense of if this is a feasible goal or not.


 Hello Clayton,

It is great to see you taking the next steps in your financial journey. More power to you!

Post: Wise to shop around for next loan?

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79

Hello Armando,

It is always wise to check pricing from multiple lenders before you proceed. You will be surprised the amount of bogus fees some lenders charge and also how much money you can save in monthly payment when you compare lenders. Better yet, you could also ask a local mortgage broker to shop lender pricing for you.

A second, third look is always better than one

Post: Heloc for Investment Homes

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79
Quote from @Alex Tsang:

Hey there!

I recently watched a YouTube video from BiggerPockets where they discussed using a HELOC for investment homes. It got me really interested! I was wondering if anyone here could possibly share or recommend a lender that offers this option? I'd greatly appreciate any insights or suggestions you might have.

Thanks in advance!


 Hello Alex,

Is this for a residential or investment property? What is current market value on the property vs the amount owed on it? Is your FICO reasonable? This will determine if a lender could give you a HELOC and increase your chances of getting one, in addition to how much they will give you as a credit line.

Quote from @Kevin G.:

Hello everyone,

I am new to house flipping and have recently gotten into the game. I came across a home in the Bay Area that requires extensive work and essentially needs a full rehab. The home is essentially bare bones, with the wood being in good shape but requiring new drywall, flooring, a full kitchen rehab, a full bathroom rehabs, electric work, and repair of the septic system outside.

The total rehab cost is estimated to be around $150k-$200k, and I'm wondering if hard money lenders typically finance a deal that requires this much remodeling costs and still fund 100% of the rehab. The current purchase price is $185,000, but I would likely go over asking since this is what we are seeing in the Bay Area market, even for flips.

The ARV for the property is $770k, and currently it sits at 60% of ARV if funding the full rehab. Therefore, I believe this deal should pass a hard money lender's criteria.

Alternatively, would a construction loan be a better option, given that this project requires a lot of work?


Hello Kevin,

So for a construction loan what is your experience with you on title in the last 36 months? Most lenders would like to see a minimum of three projects with you on title in that time frame to assist you. If you don't have that experience on title you probably will have a hard time doing this.

I think private money or hard money or a fix and flip loan would be best for this scenario. They usually will lend to you but at a higher interest rate(for hard money and fix and flip loans) usually interest only for a duration usually for not more than 1 year. That will allow you to do the project and then later refinance to a more sensible loan with favorable terms and a lower interest rate.

Keep in mind: a construction loan will have the barrier of required experience. If you don't have it, you'll run into serious issues getting approved for a construction loan. Hard money, private money, fix and flip loans are possible ways to go about this that will help you. If these project will not last more than a year these are ways to go

Post: HELOC on Investment Property

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79
Quote from @Brittany Minocchi:
Quote from @Dennis Muno:
Quote from @Amby Bhagtani:

Any good recommendations for someone who is familiar with HELOC on Investment properties in Ohio and California?


Hello Amby,

The best HELOC lender is the lender whose HELOC that will allow you to pull out as much equity as you want from the property, will close fast and has a lower than market rate with favorable terms.

HELOCs are a bit tricky on investment properties, I only know of one doing them right now.

If you’d consider a HELOAN (closed end product instead of a line of credit, but second position so it still doesn’t affect your first mortgage) they are easier to come by. Whether or not you qualify for either option will depend on the location of the property (CA and OH shouldn’t be a problem), property type, current value, balance of the first mortgage, FICO, whether it’s in your name or an LLC, etc. 

Happy to discuss if you’d like to connect. 

 Truth! HELOCs are a little complex on investment properties, depending on state. In TX, I believe HELOCs are not allowed on investment properties. However, I know HELOCs are allowed on investment properties in many states. I know a couple of lenders who do them on investment properties in the states where investment property HELOCs are legal.

Post: Financing a mobile home / double-wide trailer

Dennis MunoPosted
  • Lender
  • Denton, TX
  • Posts 349
  • Votes 79

Some banks may lend, some won't. Contact a mortgage broker. They may be able to put out a search for you to see who will offer financing for this and provide you with some options. Thanks!