All Forum Posts by: Jordan Ray

Hello! I am new to REI and I have been running my numbers for multiple properties I have received from my realtor. The part that I get stuck on is the refinance part. Are there banks that will do more than 70% LTV?? My goal is to get a cash flowing property that I will not have to bring much to closing on the refinance. I understand that in a perfect world this will be possible but maybe not in our current world haha. Can someone help with this mental block?

Hey All,

What are your thoughts for 38119 zipcode ? Especially closer to Green Lodge Townhouse area.

Working on a deal and want to get your thoughts ?

Orhi

Which of you get owner’s title insurance? And who doesn’t get owner’s title? Why do you get or not get? Thank you. 

@David M. - I would prefer not to tap into my equity. From what I gathered and read about portfolio loans was that it isn’t sold to the secondary market plus the rental income could be used to determine how much I can qualify for? Perhaps I misunderstood. 

With a conventional loan, I have to put down 20% which isn’t the issue. I am just trying to figure out what loans would work with my situation. 

@Jordan Ray - doing a BRRR is not conducive with my family as I have kids and moving them is away from their friends is highly unlikely. But if I were in a different situation, this would be something I could do.

I have been talking to a few agents/investors on here prior to the holidays but now I’m back at gathering more info before I rip the cord and make my first purchase. 

Hi!! I am just starting out and looking to invest in Memphis. I have been talking with Dean Harris & Taz. I need to reconnect as the holidays were crazy. That being said, I want to start out conservatively as I will be a long-distance landlord. I currently reside in South OC (SoCal) and own my house. I am looking out of state because I do not want to be a landlord here as it is  expensive and not landlord friendly. 

My question is…should I get a Portfolio Loan as I would refinance in a year or so? I would not want to tap into my equity in my house, 401k or my savings. I guess this would be coined as creative financing? What are the disadvantages? Advantages? 

Also, could I take a portfolio Loan on a second home? 
any advice and/or suggestions  are welcome. 

Thanks! 

Assuming loan is 70% of ARV (that's 100% of purchase + 100% of rehab), and it takes you 6 months to complete, and terms are, as you said, 5pts and 13%:

Loan = 70% x ARV

Loan cost = 5% x Loan + (13%/2) x Loan

I would avoid going for 100 & 100 if 5 points.. As a lender, we do 90 & 100 - but only 2 points, it's going to balance out better in my opinion. 

So 70% Loan To Value (Max) and 90% of Purchase and 100% of Rehab.

Let's say your ARV is $300,000 and your purchase is $170,000 and your rehab is $60,000

Initial loan (90% of Purchase) = $153,000

Rehab (100%) = $60,000

Total Loan = $213,000 requested. 

70% MAX of $300,000 = $210,000 - So we would adjust the loan to this.