All Forum Posts by: Jesse Rivera

Start building your team. Real Estate Agent ( I know some great ones in SD), mortgage broker, and property manager (if you plan on using one). Make sure they have experience with investors.

Good luck on your journey. Happy to answer any financing questions that you have.

Because in most states, you don't need a license to do commercial loans (in CA you do). So most of the solicitations are just sales people, that don't know a lot about loan, or even investing. Their job is to get you in the door, and then they will get paid if the loan closes. More of a buck shot approach.

Find a reputable, experienced (loans and investing) loan officer that does hard money. I would start with a mortgage broker.

Unfortunately, yes. For conforming loans, that is. 

This is the double edged sword of investing and self-employed. Great write-offs, less taxes, but net income is so low it's hard to get approved for a loan. I would still run it buy a good lender that knows how to work with self employed and investors, there are some deductions you can add back, so you might be ok.

If not, you will have to start looking at non-conforming loans - Bank statement and DSCR. You will take a hit in interest rate for sure, but you should be able to qualify.

Why aren't you adding rental income to your DTI calculation? Does the rental income show up on your tax return, schedule E?

Find a lender knows how to calculate income from investors and self employed, you'd be surprised how many do it wrong. This is the only way you will know your true DTI.

Don't waste your time trying to find 100% financing. I would start looking for someone with money to partner with. Create an amazing business proposal with examples and proposed returns (short and long term). You do the work, they supply the money.

This is where you should spend your time..

Why? What would be the benefit?

Agreed. Under 3% is a good rate right now. No points or extra fees added on.

Fannie and Freddie have a couple new refinance programs for low income borrowers, the DTI can go up to 65%. There are some stipulations, but worth a look.

Hi Mel,

My company is based in San Diego, I'm in Long Beach. I'm an active investor myself, so speak the language. I am a mortgage broker that works with over 50 lenders, and many of them have great investor product. I keep my compensation reasonable, so my rates are hard to beat. And we get volume discounts with some of our lenders as well. Also, i have great hair.

My experience in investing and emphasis on education allows me to set a comfort level with your clients, so that they are more confident in their choices and mitigates some of the "buyers remorse."

Happy to help.

It depends. Hard money is expensive. And if you have delays in your project and cannot refinance as expected, it will QUICKLY eat your profits. Double the time period of your project, and add 30% to the bid your contractor gave you. If you can still make a profit, I would pull the trigger.