All Forum Posts by: Fallon Gilbert

@Fallon Gilbert Do Not sell sub2….these would allow the buyer/title at some point to stop paying mtg and still collect rents/live there while You get foreclosed on.  At least do a wrap mtg and have an attorney/title company draft the Note and Mortgage for you.

@Fallon Gilbert

I bought my first two rentals with cash. I had to borrow from my 401k, do a HELOC on my primary and cash out some from my Roth IRA. it got me in the game. So one house was only 56k. I sold it a year later for 95k and did a 1031 exchange on it to buy one for 225k. Then I did a cash out refi on that one to pull out the equity to use to buy 3 more houses with 20% down on each one. So the cash flow went from just $400/month from that one house to about 3k/month after all my expenses by scaling up. And the other one I paid for cash, I harvested that equity a few years later by doing a cash out refi on it. I used that cash (140k) to buy 3 more rentals. So my advice to you would be to somehow pay cash for them now if you can, then get creative down the line with your financing like I did to scale up for free. Scaling up didn't cost me a cent out of pocket later on. That's how I've bought 12 rentals. I used built up equity just sitting there doing nothing for me to buy more cash flowing properties for free. Good luck!

@Fallon Gilbert - I don't how much equity you have to invest, but it appears to me your method could wipe out quite a bit of it on just one property.  There are lenders out there (national even) that offer small mortgage loans https://www.lendingtree.com/ho...

you could also consider P2P lending and private lenders

best of luck

@Fallon Gilbert great question.  First, I wouldn't worry about "what the threshold is for a lot of lenders."  Find a good lender that wants your business and they'll come through for you.  Sometimes they'll do it b/c they have a relationship with the agent involved.  Ask your agent to come through for you on this...it's their job.

I would recommend putting  the minimum down to buy the property (probably 20%), and then saving the rest of your cash for the next property.  In this case, I would avoid personal loans if you can take a loan against real estate, because the interest rate you pay on a personal loan will (almost always) be higher than a loan you take against real estate. 

You could put each property into it's own LLC and if you get an attorney they can do that for you after closing.

What are you trying to achieve by getting all of these properties into one loan?

Hello

My wife I will be equipping two new rental properties (our first two) with a fridge, dishwasher, oven, washer and dryer in June/July of this year.

I read that a DirectBuy membership ($800) is a great way to get name brand appliances for lower than market prices, but I've also read a lot of poor reviews so I wanted to know if anyone on BiggerPockets has experience with DirectBuy or any tips on the most cost effective way to acquire all these appliances.

thank you very much

Your best bet to qualify for DSCR is going to be able to bundle at least 3 at once into one portfolio. If you can do that, the economics can work for the DSCR lender and the minimum property values can be pretty low

I would absolutely agree with both ideas of a personal loan, and shopping through local lenders.

I was actually just trying to help a client do DSCR cash-out refis on two $100k properties in Missouri this week, and long story short, we couldn't match up anything that would work throughout our entire network. The loan amounts are just too small for the risk associated with investment properties for most larger lenders. Additionally, in your case, New York in about the hardest state in the country for most mid-size lenders to get approval in, so that alone diminishes your options considerably.

I'd recommend contacting all small banks, and especially credit unions in your area, to explain what you're looking to do. If they believe in your plan, then you can most likely get a long-term relationship going with one of them where they cut you some leeway on the smaller property sizes.

Best of luck!