All Forum Posts by: Giancarlo Valverde Barriga

SD is my hometown, and Cleveland is where I am looking at too! Feel free to reach out, I can connect you with some of the lenders who have been helping me navigate the DSCR route

Quote from @Nick Belsky:

@Giancarlo Valverde Barriga

First off, if you are coming out of college and are now working in your field of study, your time at school counts towards your employment history.  You do not need to show 2 years of employment history to qualify for conventional financing.  I help new grads all the time and get them approved without much hassle.  You will need to show transcripts to prove time in school and show the last month of paystubs along with an offer letter for your employment.  

There is only one lender I know of whom is lending down to $50k on DSCR, but they are a wholesale lender. You cannot go to them directly. It must be through a mortgage broker.

Either conventional or DSCR, don't look for prime rates with a loan amount so low. The lenders will penalize you for such a low loan amount.

Cheers!

Great point. Unfortunately, my job, even though major-related, is not on salary. That seemed to close that door for me with most lenders, which redirected me to this path. Gotta love all the No's in problem-solving. It makes the Yes 10x as sweet.

Hello all, out-of-state investor looking to invest in Cleveland, OH. I am a new graduate and do not have two years of income for a traditional loan. I am looking to borrow ~$90k. I have enough for the downpayment + reserves, good credit, etc, but I might have to hunt for a new lender. I previously understood that I should apply for a product that was offered that best suited my needs. However, I believe I am now told that the minimum lending amount is much higher than initially explained. 

If I have to find a new one, does anyone have any suggested DSCR lenders?

Thank you!

@Najma Osman , both are actually my points of interest! spot on

Thank you all for the input. Going the DSCR route for this project but will definitely read up on all the suggestions.

@Noah Bacon thanks for this!

@Shane Kelly, thanks for your input!

Quote from @Shane Kelly:

The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.

 great info, thank you. By the "window," I am also uncertain since I haven't gone through the process yet. From my understanding, there is a time frame where I can inspect the property and negotiate with the seller correct? curious as to how long it would usually take (2 days? 4, 5?) before I am locked in to buy the property. If the contractor finds some things that would make me reconsider the deal and back out or create an opportunity to negotiate, there is a time frame before its too late right? maybe I am missing something.

Hello BP, excited to finally be dialing in my first property. I am looking at Euclid, OH, and have found 4-5 properties that I think work really well for me. I have to go the DSCR route for financing so I have to submit one property to them. I have a few questions if anyone can answer. This is my first investment, so many things are still confusing despite reading books and researching.

- properties I'm looking at are about 100K, CF/month is averaging about 250-350 after running the numbers very conservatively

- CoCROI are about 10-15% and ROI, including equity and such, is about 20-30%. Feeling confident about these properties.

1. If I submit the property to DSCR loan but the property turns down an offer, do I have to reapply for a new one for a different property and get a new preapproval, or let my lender know and they just update it?

2. After showing interest in the property, how much of a window do I have before I have to sign the contract? I need to get a contractor, inspector, etc and will want to have them lined up before signing to ensure I am fully aware of the estimates and can negotiate.

3. I am an investor from CA but can only get my feet in the water in this general area because of funds, so I am looking for a reliable and competent PM in the area that someone may have experience with and able to reference!

Any other guidance is welcome, Thank you all!

Erik Estrada (above) has been helping me with my loan hiccups as well, recommend you reach out to him!