All Forum Posts by: 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.

What project are you looking to do? That will usually affect your lending options with any fix and flip lender

Hello Joseph,

Not all private money lenders are the same. What project are you looking to do?

Some private money lenders may be willing to assist. Not everyone though, but this seems possible

If you are looking to get financing via commercial/private money lenders, lenders will want to know your experience in the last 3-5 years doing construction projects, with your name on title. If you don't have construction experience as an investor(with your name on title), you will find it hard to get financing.

Experience is key when it comes to doing construction. However, if you don't have that experience you can partner with an experience investor who has done construction before on your first construction deal

What's your FICO? How many units does this property have? Do know the taxes and insurance(estimated) for this property?

No.This won't be an FHA loan. For units above 4 unit, they are commercial type properties. Private money or commercial loans could also be used to purchase this property

Quote from @Mike Schorah:

Can you take out a HELOC on a sub to deal after buying it and use it to finance rehab costs?

Well the sub-to loan amount will have the first lien on the property. Yes, it is possible to do a second position lien on a property as long as the HELOC passes the lender's guideline(i.ie, will the lien amount and the HELOC amount pass the combined loan to value on the property; what is your FICO). Not every lender does second position HELOCs but there are many who will do it.

Hard money, fix and flip financing, private money, bridge financing(depending on the project) are ways to go. 

Quote from @Christina A.:

Hi members and mortgage pros

I've been self employed for a year. Can prove consistent income around $8k/ month. Credit is 800. 

I'm sitting on 500K cash from a recent property sale and have 1.5M in investments. Last, I own a vacation rental that's been cash-flowing 30K/ yr for the past 2.5 yrs. 

Looking to by my primary residence in West Palm Beach, FL.  Spend approx $500K. 

So far I've received rates of 7-8% on a 30-year fixed with 20% down. Having a hard time swallowing this. 

Prices just keep going up down here. It's nuts. Can anyone offer a better rate? Or any more creative financing suggestions? 

Thanks in advance!

 Hello Christina, have you considered a temporary rate buy down loan? These are loans where if you are able to put more money down allow you to significantly buy down your rate for 1-3 years with your rate then returning to market rates at the time of loan closing after the temporary rate buy down period. You could refinance if interest rates are lower after the temporary rate buy down period. I don't know if self employed borrowers are eligible though for such loans. I think this is a way forward