All Forum Posts by: Giovanni Schiano

coming back to give an update on the current situation of the deal mentioned above. 

located a lender to do a dscr, after a few weeks everything looked good, appraisal came back good and we were set to continue, until I continued to get updates on fees increasing. downpayment+ closing costs going from 36k to 41k. as we pushed forward we were coming to our expiration date and i was waiting for my heloc to go through which was then denied because it was a rental property (would have been nice to know that when I inquired) went to another lender to get a Heloc on my personal residence (more delays) and still not complete. 

we asked for an extension and was granted, at this point the original lender comes back with a fix n flip loan offer, almost a sure thing 10% down, finance the whole rehab estimated at 30K and rolling into long term debt. claiming we can get it done by expiration. Sounds great, less down payment, finance rehab so on and so fourth. FALSE. 

Lender is now claiming ARV is too low because they can't find accurate comps, its a very unique property (agent states ARV is 230k once subdivided, purchase price 134k) with two doors at 1600/month rent

Now we are sitting at 134k purchase price, only getting 90k for purchase, 30k for rehab, 13% interest only and having to come up with......50k 

good, to bad, to worse. 

i don't want to walk away but I feel like we are running out of options here.

any advice?

No just the rear home is the double wide. The front home is traditional build. 

Quote from @Andrew Zamboroski:

Quote from @Giovanni Schiano:

Looking for referrals on a lender that can offer 20-30 yr fixed loan on 2 properties all on the same lot. 
open to DSCR.

Comment or message me with referrals or if you are a lender I can give you more details on the property. 

TIA! 

Can you provide some additional details? Is this two SFH's on the same parcel?

Yes, plus another lot next to it is approx 1/2 acre that would be great for an additional unit.
front house is 2 br 1 bath approx Rent 950-1000 
rear unit is a 3 BR 2bath Double Wide on a foundation that was rented for 800 

Looking for referrals on a lender that can offer 20-30 yr fixed loan on 2 properties all on the same lot. 
open to DSCR.

Comment or message me with referrals or if you are a lender I can give you more details on the property. 

TIA! 

Thank you all for your input, toured the one property the other day and unfortunately I don’t think it’s something that I can financially tackle. 100 yr old property with extremely deferred maintenance. Approximately 100k or more. 

However I am still looking at properties and interested in finding a lender that will do single family or multi family loans at 20 or 30 yrs! 

Quote from @Logan Singleton:

Hi @Giovanni Schiano what type of property are you looking at 1-4 units, mixed-use, industrial, etc? Since most commercial lenders offer 30-year fixed.

I am currently looking at a Duplex, this particular lender is a local bank which I’ve done business with before with some small unsecured loans. I asked multiple times if they offered any product with more than a 15 yr term and they have repeatedly said no. Only other product I was offered other than was a LOC. 

Hello all, 

I am currently analyzing deals nightly to continue my investing journey, as I sit here nightly analyzing I seem to find myself in positions where nothing with positivly cash flow. 
I know cash flow is though right now but I’m wondering if it is mostly because of the loan package I am being offered by my lender (15 yr Commercial Loan) 8.5% with a 5 yr adjustment

So I started thinking using this loan will get me the property however wont give me any returns unless I can refinance into a long term mortgage. With that being said…

Would I be able to refinance that commercial loan into a 30yr mortgage? Which would provide me cash flow. Has anyone done this? Is it possible even if I use another bank or lender. 
this would be for small multi unit residential properties. 

Hello All,

So as I sit here I wonder how many have gone through my current situation, certainly I can’t be the only one. I am in what I would call the planning stages of getting started investing, however I have an issue that needs tackled. 
My Goals: Retirement by 42, (I am currently 28) real estate investing is my plan for passive income and to be retired by my early 40s which would mean that I would need to obtain enough properties to cash flow at least 5k per month. Starting with Single family units and working my way up to multi family units. 

Now the issue lies in this, This September my wife and I purchased our first home. Which cost us 230k 5% down, obviously we don't have enough equity in the home yet to cash out refinance or heloc and with PMI Im going to assume that getting another mortgage even for under 60k would be pretty tough.
I do have funds, stock money, bonds etcs that I could make a decent enough down payment on a small single family unit that could use some tlc however I’m not sure a bank would even entertain my inquiry so soon. I am also one to over analyze everything but I feel to reach this goal of early retirement I would need to start this journey ASAP

Are their any suggestions or secrets?  I was thinking to first put some money into my home to increase value then refinance and take out a heloc to purchase an investment property? (Not sure if that’s how that works) 

Thanks in advance 
GIO

Hello, I am a future investor, new to BP forum and am interested in networking as well

Thank You All for reaching out. I am very excited about this journey and glad to have folks that are relatively close to my location. I will probably be posting a fair amount of questions  on future forums and your input of the market would sure be of great value!