All Forum Posts by: Farrukh Amini

In my experience, no matter what type of loan you get, there’s always a downpayment requirement. No way around it as far as I know (if there is, I’d love to learn too)

So, I agree with @Robert LaPrelle about bringing in a partner who’d be willing to finance the downpayment and closing costs. That’s what I did on my last project. 

Another way to come up with funds for downpayment would be taking out a loan on your 401K if you have it, or if you already have a property look into a HELOC.

I have one more strategy that I used before but not sure if it can be implemented with downpayments. When I was short in cash for rehab of one of my properties, I applied for a credit card that offered a 0% promo APR for 1 year and used it to finance part of my rehab. It of course significantly lowered my credit score because my credit utilization was almost 80%, but as soon as I paid it off it went back up.

Good luck!

There are lenders who lend in several states. As long as they serve that state and you like their terms, I’d say go with them. Make sure you shop around and compare terms and rates. 

Hi David,

Can you please give us an idea of your set-up and ongoing expenses to maintain such structure? Also would love to get recommendations on state/attorneys for asset protection.

Thank you in advance. 

Farrukh

Hello BP community! 

How would you go about structuring a partnership that involves one partner bringing deals and serving as guarantor of the loan (has better credit and income, hence applies for the loan) and the other bringing cash for downpayment and closing costs (but not listed on the loan because has no credit/income). 

We want to purchase the property under an LLC which will have both partners listed as members and will have an operating agreement. The lenders we spoke to are saying that all LLC members need to be on the loan. My attorney says not all have to be on the loan but it's up to the lender to require it.

The partnership is 50/50 and the cash partner who can't be on the loan needs to be in the LLC To ensure his contribution is documented.

I’m curious to learn if anyone else has formed a partnership like this and if so, what creative ways they used to go about it.

I appreciate everyone’s input on this. 

Regards,

Farrukh

Seems like pretty high crime area on the heat map. Can it be due to that. I know in such neighborhoods cash flow can be high but the quality of tenants is a challenge. 

Thank you for sharing your tip @Chris DeMello

Unfortunately that’s not an option available for me. 

Btw if you paid 1k for two months on a 100k loan that’s 6 percent interest correct?

Hello BP community!

So we're looking to unlock some equity on one of our properties to use as a downpayment on another investment. However we keep running at one problem: high DTI ratio. I've spoken and done applications with big banks and smaller lenders but both ruled out a cash out refi or heloc due to high DTI ratio. I'm looking to see if anyone has gotten a line of credit through a lender that didn't require a DTI. A debt service loan has higher rates which is not working either. Would greatly appreciate any input and guidance.

Thank you in advance. 

Farrukh

@Al Costner what did you end up doing? Do you mind sharing your experience and any tips? 

I just learned about CWCOT program. Thank you for sharing your experience @Wil Serrano

@Dustin Mullins did you end up purchasing any of these? If so, do you mind sharing your experience?

Thank you. 

Farrukh

Thank you @Emil Shour