All Forum Posts by: John O'Leary

Welcome AL!

What type of investing are you looking to do? If you are in Charlotte look into the NCREIA. It's a fantastic networking community that runs a REIA correctly.

Lamassu, hands down. DM me for info.

@Joe S. 

That's exactly what I did. You can visit my wholesale site via my website listed here on BP. I joined the Board Room Mastermind which is a $40k investment, and we JV nationwide by partnering the financing with our wholesale deals as well as other wholesalers nation wide. All of my contact information is listed, Feel free to reach out if you have questions.

If you are wanting to understand the market why cash buyers only? This just seems like a new wholesaler trying to get "cash buyers". 

Hi Billy,

It really depends on your specific strategy. For instance, you mentioned having some experience with rehabs, having fixed up and sold your parents' property. Are you considering buying distressed homes to rehab and then refinance them?

One option could be to purchase a distressed property with a bridge loan, complete the rehab, and then refinance either through a rate and term refinance or a cash-out refinance into a DSCR loan. A DSCR loan, which stands for Debt Service Coverage Ratio loan, is a long-term loan that uses rental income to qualify instead of DTI (Debt-to-Income ratio). These are popular programs among investors because they do not report to credit agencies, use DTI to qualify, and do not require tax returns or income verification.

You can use a DSCR loan to purchase or cash-out refinance, a strategy commonly referred to as BRRRR (Buy, Rehab, Rent, Refinance, Repeat). It all depends on your goals, the number of properties you want to acquire, and how you can build an efficient process that maximizes your working capital to achieve those goals.

 Sent you a DM

Hi Jayden,

If you're considering using the BRRRR strategy, I recommend looking into a bridge loan for the value-add portion. Many options only require a soft credit pull, and depending on factors like location, experience, and credit score, lenders can offer leverage of 85-90% of the purchase price plus 100% of the rehab funds. Once the property is rehabbed, you can refinance into a DSCR loan with no seasoning requirements.

I'll let some of the traditional mortgage brokers chime in, but traditional financing might require a 12-month waiting period to pull your cash back out. DSCR loans often have options with no seasoning to 3 months, as opposed to the typical 6 to 12 months. Additionally, DSCR loans do not use DTI to qualify, nor do they report to credit agencies.

VA loans and 203K loans also have their own advantages, so consider those options as well.

Good Luck!

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Hi Teri, 

Most long term debt lenders will ask for a $75K minimum loan amount. Is this for a purchase?

It's challenging to secure a Hard Money loan for fix and flips if you're considering a second lien position. Hard Money lenders prefer first lien positions during the rehab portion due to the enhanced security, control, and financial stability it offers. When you request a rehab draw, the lender will search for mechanics liens and see the second mortgage. This typically results in rehab funds being frozen until the second mortgage is lifted. As Chris outlines, if there is a private investor willing to lend the down payment funds secured via a promissory note, and not an attached lien, it is possible.