All Forum Posts by: Joe Geist

I’m a pace student and the program is amazing! It’s actually a bit overwhelming as there is so much content. The quality and breadth is first rate. I paid for the executive membership and the cost $12,500. You get more one on one and a transaction coordinator to help you put your deal together (paperwork/logistics). In addition you get the community aspect and it’s a huge group. I would say money for value is outstanding. And I haven’t even done a creative deal yet but learning so much.

Hello BP-

I have a strong performing rental townhouse. Total debt service/tax etc $1704, rented for $2400. Is there a way I can borrow against that cash flow to get a loan for another rental property? If so- what would be the best road to look down. A cursory poke and conversation with some other small time investors mentioned DSCR- but it seems like they only lend larger amounts 100s and up. Thoughts and suggestions would be helpful! Thanks

@Joe Splitrock appreciate the details- let me provide some to maybe help clear things a bit. 8 months ago I bought my bow wife's townhouse from her (we were both living in) . This way she was able to completely pay off student debt and car debt and have some cash for the wedding. Our plan at the time was to live in the original townhouse and save for another property. A few months later we found out we were pregnant. We then got married and just yesterday found a deal we couldn't ignore and got it under contract. She did disclose that we are married and we only submitted her financials to the bank (VA loan). So this dynamic situation was a plan down the road when I got my original mortgage- but obviously not within a year. My original loan was 5% down.

We are also still living in our townhouse and close on the new property in august so at that time I will be 10months. So maybe that provides some context.

Thanks again for your response

@Nathan G. Okay guys I will give them a call! Appreciate the advice.

Very basic question here. I bought a townhome under my own name in oct 2020. Now my wife is pregnant and she bought (her name and money only) a larger townhouse in same zip. My question is do I have to worry about mortgage fraud if I try to rent my property a few months before the general 12 month “seasoning”. She was not pregnant when I bought my property. Or is this question void because the new property doesn’t even involve me. Or should I just call my lender and explain my situation? Thanks in advance to the BP community!

J-

@Scott Smith great news, I’ll review and potential post my own results here.

Thanks!

@Scott Smith thank you for your response. Can you please elaborate a bit on the groups “fund” and “grow” that you mentioned in your post?

Thanks

@Donald L. Johnson II

I recently listened to an entire podcast on this issue. It was from “passive real estate investing” on Spotify. Long story short- credit karma doesn’t show you actual FICO scores, in addition your credit score is different from your credit profile and both will affect your ability to obtain financing and the terms. Check out signing up @myfico.com. I did for the exact same reason “scores not aligning”. They will show you a breakdown of your real FICO scores “there are like 12 of them I heard” it will show your your scores for mortgage, auto, credit cards and personal. Side benefit- ID theft policy included for the $29 fee

Best of luck

@Stephanie P.

UPDATE....a few more details to help clarify. My father will provide me the cash (an agreed upon fee after I get financing) to purchase a SFR to hold for cash flow. I would then obtain financing and cash him out after (I have enough for down payment).

The reason I was asking about moving forward in this route was the fact that I had "heard" it was very challenging to get loans for the LLC initially. So I was curious since I have access to this capital for a very family friendly price, would this be a superior approach- cash purchase in LLC, finance out 70-75% LTV and in combo with the funds I already had for the down payment, return the lump sum back to my father and everyone is made whole.

Hope this clarifies.

Thanks again for all the responses

Hello all

I recently had a conversation with a co-worker who had just formed a 3 man LLC and financed their first purchase. Their largest challenge thus far was obtaining financing - so much so they hired a broker to help them secure loan (for a nice sized fee). If one had access to cash reserves from a family member, would it be possible to make a cash purchase using the LLC (assume the LLC was funded in the correct manner) then obtain financing on the property? Or do we end up in the same boat - obtaining financing for an entity with no track record and all the same issues?

Thanks in advance!