All Forum Posts by: Devin Peterson

Hi All, 

Has anyone heard of the "Home Possible Loan" from Freddie Mac? What are some Pros and Cons of using this method as this is the first time I'm hearing about it. I've never heard of it mentioned on the BP Podcast but one lender suggested it to me today as a way to scale a multi-family portfolio (buy first multi-family with the first time home buyer's loan FHA, then buy the second multi family with the Home Possible loan Freddie Mac.)  

For context, I'm a single 27 y/o working for an Industrial REIT as an Asset Manager and am blessed to make decent money for my age. No kids, living at home with my parents to pay down my car and student loans. These properties that I'm planning to purchase, will be my first two in the next coming years. My original plan was to buy a single family/condo live in that for a year or two while I fix it up then rent it out and move on to a multi-family next. This conversation was prompted when I asked the lender (who explicitly works with investors) "what the biggest mistake is that new investors make?" The lender said, you just made it with that plan.

The lender (been a lender for 25 yrs) said the investors he's seen have the most success utilize the strategy I mentioned in the beginning of this post. The lender said I'd be able to utilize the down payment characteristic of both loans to essentially get into the real estate game and be on a good track to start scaling. Obviously, the lender mentioned all the good sides of the loan so I wanted to do some due diligence as this is the first I'm hearing of this. Does any one have any experience with this loan product? 

Thanks in advance for any and all insight. 

Hello everyone,

Does anyone know of a lender that does 20% down on a DSCR Loan?

Looking to go the BRRR route to expand my portfolio. Looking for recommendations on reputable firms to work with for DSCR loans.

I'm curious how banks looks at DSCR for properties that are value-add. Specifically, a property where there is not any significant cap-ex, simply gross mismanagement.

ie. The market is NOT over-saturated, but rents are 30-50% below market rents.

Will the banks underwrite based on the current NOI or based on projected NOI for Year 1?

Hi everyone,

I have heard a lot about DSCR loans, which sound promising for several reasons (feel free to give your opinion if you think otherwise). However, I'm wondering how to manage the disconnect between the common >1.25 DSCR requirement and the investor's goal of acquiring properties with upside, meaning that it shouldn't start out with the best NOI at acquisition. Would a DSCR lender only look at what would be the current rent roll and expenses immediately after acquisition, or would the lender consider reasonable pro forma with upgrades/improved market rents?

Thanks for your input.

I am Realtor Local to the Boston area, South Shore, and some areas of western MA. I am looking for a no income / no verification type of financing, or someone willing to do seller financing. I own a Microgreens business, and my real estate business, is just starting to really generate sustainable income. I would like to grow my real estate profolio with a multi family, or an BRRR. Being a realtor I do have the opportunity to sell after fixing the property—-but again the financing is the issues. I have great references, but nothing on paper to help get a conventional loan. If there are local investors, or others who can send me in the right direction on how to start in real estate. Goal is to generate long term rental properties and air bnbs.