All Forum Posts by: Devin Peterson

I am most likely going to be investing out of state but I have selected which state just yet. I'm considering several states. Is it best to obtain a loan from a local lender or a lender in my own state, where I will NOT be investing? I am assuming I should only apply for one loan approval since pulling my credit score/history will lower my credit number. Any advice appreciated.

If what you need is an investment-focused lender or broker then it does not necessarily matter in-state vs. out-of-state. You will find that even some of the most helpful are nationally licensed or may not be local. I recommend just getting to work with someone who has a strong knowledge of the investment space and can connect you with multiple options.

1 Vote

Quote from @John McKee:

If you own a business even if it's a pass through LLC for your real estate you have to file a BOI Report by the end of this year.

BOI stands for Benefit ownership information. It's a one time free filing made to the FINCEN. It's a pain in the butt, but at least it's a one time filing. Bankers will be asking for proof of this filing as you get loans in the future.

https://fincen.gov/boi

It's not optional, It was deemed unconstitutional across a few court cases from TX and AZ, making it a national mess and confusing for everyone. But it's right on their website its now voluntary.

1 Vote

Fairfax, Virginia

Quote from @Doug Smith:

I think you have to ask yourself what you're trying to achieve by refinancing at this point. Why are you wanting to do it? Is it to lower rate? Bleed out equity? Understanding that would be a huge help. You would also want to ask what is your current rate, what rate can you get, what are the closing costs that are involved including points, ect. If you oversimplify it and take your total cost to close the deal / monthly savings = # of months to Break Even. If that time is relatively short, then a refi might make sense. If, however, it's a longer term, perhaps staying put might make the most sense. There are many variables that were not in your post that we would need to know to point you in the right direction. I really hope that helps you.

Doug is a legend and makes a great point. What is your WHY. Whats the purpose you are refinancing? That will answer the question right there.

2 Votes

Quote from @Erica Baruti:

I'm looking for private lending or financing to renovate a townhome rental property I own in the Atlanta area. Need approx $15k. The property is owned free and clear. Any recommendations or referrals would be greatly appreciated!

Don’t get involved with PMLs if you don’t have to with that small of a budget. Try looking to get approved for interest free credit cards and pay it all off before the interest period kicks in

1 Vote

Atlanta, Georgia

Quote from @Sushil Iyer:

Quote from @Devin Peterson:

Quote from @Sushil Iyer:

We have a SFH and a duplex that we own free and clear, and a duplex on which we have a residential mortgage. Each of these properties is in a different location and was purchased at a different time. Is it possible to re-finance these separate properties as a group in a single loan? Does the fact that these were purchased separately and are at different locations make that option unavailable? The idea is to re-fi in a single transaction, which, I assume, will have benefits over three separate transactions. Please advise. Thank you.

It is possible, this is what's called a blanket portfolio loan. All the same rules of a standard DSCR cash-out refinance would still apply. Are the properties close to in the distance to each other?

Thank you. The properties are between 20 and 40 miles away from each other.

I would side on the fence that's too far apart for portfolio or blanket lenders. Even if you do get someone who is willing to take a stab at that, my instinct is that they would have some egregious terms worked in there. Just speaking from experience. Its probably best to proceed with two separate DSCR cash out refinance with one broker who can get you lender discounts. Happy to connect! Good luck!

0 Votes

Dallas, Texas

Quote from @Sushil Iyer:

It is possible, this is what's called a blanket portfolio loan. All the same rules of a standard DSCR cash-out refinance would still apply. Are the properties close to in the distance to each other?

0 Votes

Dallas, Texas

Quote from @Connor Hibbs:

Commercial rooming house in CT! It’s 13 units. Single room occ.

Who can finance it for my client?

Address: 906 Judson Pl, Stratford, CT
Purchase date: 10/16/24
Purchase price: 715,000
Amount Owed: 564,000
Value: 750,000
Unit Count: 13 - see card: https://gis.vgsi.com/stratfordct/Parcel.aspx?Pid=9146
Current Rents (each unit): 11,800
Market Rents (each unit): 13,000
Annual taxes: 10,676
Annual insurance cost: 7500 est
FICO score: Bor 1: 695, Bor 2: 670
Number of purchases in the last 3 years: 10+

I have someone local

What’s he trying to do? Rate and term?

0 Votes

Hartford, Connecticut

Quote from @Lolo Druff:

I am looking to buy my first investment property, and my goal is to continue building this portfolio every year until I can live off my rental income entirely. I have about $400K to deploy, but would prefer to buy several duplexes rather than 1 more expensive building. I live in CA but am open to investing anywhere that makes financial sense. Cash flow is important of course, but so is appreciation, so I want to ensure I have a balance of both. Is it wise to buy some units with high cash flow and low appreciation, and others with lower cash flow but high appreciation to diversify my portfolio?

I was looking in Columbus OH but the market is so saturated and it's been difficult for me to find cash-flowing deals there. Any deal that I've found seems to have sold within the last 2 years, and its alarming as to why it's back on market again unless they have problems with the building and/or tenants. I'm open to all suggestions regarding different cities that meet my requirements and would love to chat with some realtors who have local experience working with investors.

Lolo, you have an exciting problem on your hands! What to do with your money!? Depending on what strategy you want to use/stabilize with will help you decide on a market or maybe multiple. Best thing to do is pick a strategy and stick with it. Running through some dry scenarios with brokers and lenders would be a good way to get your feet wet. Best of luck!

0 Votes

Quote from @Nicholas Dillon:

Hi there,

I currently own 2 investment properties. I am currently investigating taking a cash out refinance on one to fund my next purchase. What kind of calculations should I use to determine whether or not this is a good idea?

Nicholas depends on what your ultimate purpose and goals are. Some folks pull out capital to deploy into other investments they see as a good move, but you may also want to consider the capex and debt service the property comes with as far as gross rent covering the costs. If your pressure points are cash flow, don't max leverage. Lots of ways to dice this up but only you will ultimately what you want :) Happy to connect and talk refinance strategy if needed! Good luck!

0 Votes

Quote from @Devon Shives:

I'm trying to get a heloc or cash out refi on a primary residence duplex.l under FHA.

I have great credit but modest income

Wife has bad credit with better income therefore I don’t believe we will qualify for heloc.

Our plan was to get heloc to use as a down payment on another house hack or general investment property.

So far our mortgage company said they could do the cash out refi which would raise our mortgage from $800 to $1200 (current rate is 3.62) and the rate would go to 6.6

To pull out hopefully 30-35k max

My concern is if I do the cash out. We won’t qualify to get another mortgage anyway due to either dti or income.

From your investor expertise, what would you do in this situation? Really looking to get some more properties asap.

Make sure to calculate the difference between the blended rate and an entirely new first lien position. Rates could be so high on theHELOC that its not beneficial. Usually, I find that folks who have less than 4.5% or so on their first are better candidates for helocs because the blended rate is less than a new 1st overall. Hope that helps!

If you don't have the income to qualify, DSCR cash out refinance on investment properties is always an option.

0 Votes

Pittsburgh, Pennsylvania

All Forum Posts by: Devin Peterson

Devin Peterson has started 67 posts and replied 1532 times.

Post: Loan Information Needed on Out of State Investing

Post: Don't forget to file your BOI Reports by the end of the year

Post: Should I Refi?

Post: Financing for rehabbing rental property

Post: Re-financing separate properties as a group in a single loan

Post: Re-financing separate properties as a group in a single loan

Post: Need Financing for Commercial rooming house in CT! It’s 13 units.

Post: Looking to buy my first investment property

Post: What calculation can I use to determine if a cash out refinance is a good idea?

Post: Should I get a cash out refi to buy more property?

Devin Peterson has started 67 posts and replied 1532 times.

Rounded Star Post: Loan Information Needed on Out of State Investing

Rounded Star Post: Don't forget to file your BOI Reports by the end of the year

Rounded Star Post: Should I Refi?

Rounded Star Post: Financing for rehabbing rental property

Rounded Star Post: Re-financing separate properties as a group in a single loan

Rounded Star Post: Re-financing separate properties as a group in a single loan

Rounded Star Post: Need Financing for Commercial rooming house in CT! It’s 13 units.

Rounded Star Post: Looking to buy my first investment property

Rounded Star Post: What calculation can I use to determine if a cash out refinance is a good idea?

Rounded Star Post: Should I get a cash out refi to buy more property?

Post: Loan Information Needed on Out of State Investing

Post: Don't forget to file your BOI Reports by the end of the year

Post: Should I Refi?

Post: Financing for rehabbing rental property

Post: Re-financing separate properties as a group in a single loan

Post: Re-financing separate properties as a group in a single loan

Post: Need Financing for Commercial rooming house in CT! It’s 13 units.

Post: Looking to buy my first investment property

Post: What calculation can I use to determine if a cash out refinance is a good idea?

Post: Should I get a cash out refi to buy more property?