All Forum Posts by: Dominic Pizzi

Hey Jimmy! 

Great story for you guys! Financially speaking, I am the same way with investing in real estate with debt attached to my name. 

My honest opinion would be something along the lines of purchasing a Duplex/Multi family property with a FHA loan or if you can afford the 20% down payment yourself, go that route. The possibilities of you guys living in one unit where the tenants you have rent out the remaining will bring you passive income to put towards your principal each month. If you go the FHA route, after one year of living in the property you can leave it and rent the whole thing out as passive income when going to purchase another property.

Just something to consider! 

I agree with Wade, a DSCR loan and lender is a benefit to combat a high DTI

Hey Devin!

Please send me a PM! Would love to see how we can help you out on a refi on this one. 

Hey Rene! This is exactly what a cash out refinance is! Send me a PM, would love to assist you in this regard!

It would make sense to do a refinance and pay off what you owe currently on the condo and transition into a 30 year mortgage product. Condos are a bit difficult as well with the HOA fees factoring into lower DSCRs with DSCR lenders, however if you can make it work, a long term option would be best suited. This is just my opinion, but maybe an Interest Only Option with a lender would be a good choice so you can cash flow from the start and then refinance again whenever a prepayment penalty is completed.

Luke, send me a Pm!

Hello everyone!

I have a borrower that I am working with that needs financing for a property in Arkansas. He purchased a property for $5,000 in cash and now needs a rehab budget between $80-100k in order to make necessary fixes to make the property rentable. AIV on the property according to Zillow is $97,000 and the projected ARV is roughly around $150k. If anyone has some insight please let me know!

Just looking for referral fee to give up good client!

Hey Eran!

Send me a PM if you are still looking, would love to give you assistance in any way I can!

Hey Aharon!

Many lenders are hesitant about becoming second position on a potential loan. It almost seems as though its first position or no position. Is there a way you could do the deal without assuming the mortgage and just instead purchasing the property outright from the seller? You may find more luck in this way!

Hi all!

I haven't posted on here in a while, but I wanted to take some time to discuss the one thing I have seen being a deterrent to new investors or even investors that want to acquire more real estate: interest rates. 

I am sure that many of us have complained recently about the rise of interest rates, I know we have. A simple google search would show that conventional rates are hovering around 7.5%, at least in NJ, for a 30 year fixed. On the private side for the same area, we're looking at higher than that for a 20% down purchase on a primary or investment property. So why is everyone so scared to enter the game at this moment?

The answer is simple: people set unrealistic expectations on the interest rates at the peak of the pandemic, and rightfully so. Investors and people were jumping into the market with conventional interest rates at 2.5%, and 7.5-8% seems like a crazy jump from that. Market conditions and the FED increasing interest rates to combat inflation has not helped the scenario.  

People are focused too much on the interest rate and not enough on the returns on the property in question. If your property is barely cash flowing at a low interest rate, you are not investing properly. Identifying a property that cash flows very well at the current climate of interest rates would be the best route for any investor. 

If we switch our focus from worrying about the interest rate to worrying about the ROI or cash flows, it will create a lot more wealthy investors through the power of real estate.

Interested to hear everyone's thoughts on this, and I invite differing opinions to have constructive conversations!