All Forum Posts by: Dennis Muno

 Hello Steve,

What type of renovations are you looking to do?

 Hello Shane,

So if the home equity loan will give you enough money for downpayment and closing costs, and you can make the monthly payments on the home equity loan that is reasonable. If the investment property you want to buy will also cashflow with the possibility of a future cash out refinance then yes, this makes sense.

Make sure that the investment property will cash flow and you will be able to make the monthly payments on the home equity loan monthly. 

 Blaine,

Is there a reason lenders tell you regarding why they only want to give you a certain amount of money or treating it as a conventional purchase?

 Hello Timothy,

So for a conventional Fannie Mae 1 unit investment ppt I believe you'll need about 15% down. For 2+ unit I believe you'll need 25%. So with conventional, 6% down for an investment property will not work. Not possible.

If you want that low amount you may consider owner financing

 Hello Mandy,

So are you planning on buying the land and building or just buying the land and property together?

If A, you could do a bridge loan that will help you buy and build the property or B, maybe a commercial loan or with private money. 

Well that's true. For first time homebuyer conventional, you can put down as low as 3% down. Just keep in mind your DTI cannot be even a point above 50%. Maximum debt to income allowed is 50% and not more.

 Hello Kirsten,

So DSCR loans are usually the way to go. Also I have heard of 10% down bank statement loan that are used to buy residential properties for personal residence. I don't know if the 10% down bank statement loans go also for investment properties or if you'll need to put down even more like 20% down because it'll be an investment property. Banks statement loans are very good for self employed borrowers who want to buy a residential but I don't know if they also work for investment properties too.

DSCR is usually the best way to go(your income not considered) but bank statement may also be an option depending on if lenders will lend to you and how much you'll need to put down.

Options for you would be: DSCR(best option imo; you won't need to show any income ), bank statement loans(if you qualify)

 Hello Geoffrey,

Nice to make your acquaintance on here. If you and your nephew are going to apply together with you as a co-signer, an FHA loan would be a great way to go. While you can't have multiple FHA loans(if you already have one currently) if you are co-borrowing it is possible. However your nephew will need to stay in the property at least for a year.

FHA loans allow you to put down 3.5% down with the condition that you(or the principal borrower) must stay in the house for a minimum of 1 year.

Anyway, if you can do an FHA, I would recommend it most. FHA can be done with 3.5% downpayment. FHA loans are also forgivable of higher debt to income ratios.

So you could go FHA, conventional.

If you can go FHA, best way to go

So if you want to buy the land + put up the investment property, a bridge loan(interest only) would be the way to go. If you qualify, it'll help you buy the land+ get money for the construction. Usually, the amount is based on the ARV(usually 60-75% ARV). However, your experience will be key to getting qualified. What is your experience as an investor or in construction projects?

OR you could also get a loan to buy the land and then get funding(perhaps bridge) to refinance the old loan and help you pay for the construction costs. 

Since you are Canadian I would suggest perhaps pairing up with an investor/investment group in the US that does some development in FL.They could help you identify locations in FL that require apartments as well as good land to built an apartment. Do a feasibility study as well as due your due diligence. Talk to lenders about your lending options before you proceed. Your experience on title in the US will likely be considered. I would recommend finding a reputable investment group in FL that does land buying and apartment construction and doing this deal with them to help you take care of the number of deal on title issue as well as make you much more attractive for lending.

Land development and apartment ground up construction are not for the new. If you still want to do it perhaps your only way will be to pair up with other investors with experience with you all on title as doing the deal.

Thank you!

 Hello Daryl,

Sorry for the situation you find yourself in with regards to income. When you say the other two units are not completed, do you mean the other two units need some rehab to get them going? How much rehab do they need?

I think a hard money or bridge loan option would be the way to go. Generally interest only, if you qualify they should allow you to complete the rehab for the other two units. Then, you could refinance the entire quadplex into a single mortgage every month.