All Forum Posts by: Jameson Hooton

Hi Tara!  Thanks for the reply!

I guess that’s why I’m confused - if you have to turn to a hard money lender because you can’t get a traditional mortgage from a bank, how can you use a traditional mortgage from a bank to refinance and get out of a hard money loan?

If the restrictions are the same, then why would you be able to get the refi, but not the mortgage in beginning?

Thanks!

-Jameson

Hello!  I am new, and there's something that's been confusing me.

I've been listening to Brandon Turner's audiobook, and he mentions that after a certain number of mortgages, or after a certain debt-to-income ratio, it can be difficult to find a bank that will give you a mortgage.  So, he suggests turning to things like private money, and then later refinancing to pay them back.

So, my question is, do refinances work different from mortgages?  Do you not need to meet certain debt-to-income ratios, or is there not a limit to how many you can have?

Like, once you get your foot in the door through private or hard money, then you can get banks to work with you for a refi?  

Thanks for any insight you can share!
-Jameson

Thanks, guys!  That's super helpful!  

Hey guys!  I'm new here, just trying to learn.

I've heard some people recommend getting a 15-year mortgage because it drastically cuts the amount you'll pay in interest.  (This is always advice given in relation to a primary residence.)

My question is - is that smart advice for a rental property?

On one hand, it would mean you pay less interest in the long run.

But on the other hand, it would mean less cash flow (possibly pushing it into flat or negative cash flow), and taking away the opportunity of using that cash towards purchasing new properties.

Is it smarter to get a 30-year mortgage so that you can leverage the extra cashflow into new properties which should produce a much higher return on your investment than the mortgage is costing in interest?

And, if that's true for rental properties, is that same concept true for your primary residence, too?  I'd love to hear your thoughts!