All Forum Posts by: Jorge Crespo

@Nancy Bender

I assume he means CAP rates

Typically higher crime areas have higher cap rates, so more risk, but more profit.

So a property with 15% cap rate will probably be in slums, whereas a property with a 3% cap rate will cash flow less but is very steady and reliable

On another note I love pigeon forge did not know it has high crime I vaca there 2x a year

@Josh Falk I'm not an expert but do have some experience. I think of it like this, there is generally a correlation to high prices and lower interest rates.

The same goes for lower prices and high interest rates

If someone waits til house prices are lower there's a very good chance you'll be paying higher interest rates.

So your mortgage payment may very well end up being near the same amount on a 100k house w 10% interest and the same house for 300k w 2% interest.

Unless you're buying all cash of course. Dnt take those numbers literally, but just as a thought experiment. Hope that helps

@Jacob Girard Hi Jacob,

I'm coming from prior Airforce, you can reach out to me or I can PM.my number to you.

There are a lot of effective passive strategies while still being busy on AD.

Hi all,

I'm looking into the Scranton, PA area around Hyde Park as well as the Binghamton Metro area in NY. I would potentially be an out of state investor... Looking into the properties here they look very cheap compared to what I've seen in other markets.

Is this a cyclical type of market or is there a deeper reason that the market is on the downturn as of recent? I've thought about possibly buying in the area such as Multi family rentals, but I don't know if it would be a good long term play or not. Does anyone from that area have any more insight? I've noticed higher taxes, but that wouldn't deter me from buying in the area. I see vacancy is very high there ~15-16% as well as income. 

Would love to hear your thoughts!

I appreciate the responses! This is good info, now regarding securitizing the loan with my current property, would I just go to an attorney for that or should I go to a specialized attorney etc?

This is real good stuff guys I appreciate it.

Your goals and story: Currently have 1 rental property (2 units), looking to get another during Winter

Type of property: Multi family

Location of property: TN

Purpose of financing: For downpayment on conventional loan with another property

Type of financing sought: Private money loan between friend and I

Current or prior ownership of real estate: Currently own 1 property (2 units)

Occupancy: Currently owner occupied with VA loan in my first multi family

Value of property at present and/or your offer price: n/a

After repair value: n/a

Anticipated or actual appraisal issues: n/a

Current rents per month: n/a

Fair market rents per month: n/a

Down payment or equity: 20% downpayment for conventional loan

Source of down payment funds, if applicable: Possibly private funds + my own cash

Income Source: Salaried W2 + monthly income from my first multi family

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $

FICO: good/excellent, (right on the border line)

Credit issues: none

Additional details: *** Hi all, quick question/idea. I'm currently looking to take an aggressive approach to expanding my real estate ambitions, I'm currently living owner occupied in a duplex I own and renting out the other side. All numbers aside, my goal is to get a conventional mortgage on another property while I am fulfilling the 1 yr requirement for owner occupied loans. But essentially I'd like to have a private lender inject some more cash into my funds to provide some octane and speed up my acquisition process. I do plan on still getting another owner occupied loan (VA) in October on another property. So all in all I plan on having 3 properties by end of 2020.

However I have a friend that would be willing to lend me a sizable amount of money ~20K+. I do know you can't use a standard personal loan as funds for a down payment, but I'm curious how a private loan between 2 individuals would work? Would this money have to go through a sourcing process , would we have to legitimize it through a bank? I've tried to research on this and can't really find a clear cut answer. 

I guess my main question is ... "If I agree to terms privately with another individual for them to loan me $20-50K and we agree on payment terms privately, would I be able to couple that with my own funds as a down payment (20%) on a (conventional loan)property?" Or are there nuances that should happen if I was to purchase and use the down payment. Is this legal? Does this have to be reported as an official credit line? Would I have to use the soon-to-be purchased home as collateral to the individual lending me the money? Or would me paying him interest suffice (providing he is okay with that.)

Would just like to know how conventional lending guidelines work with private money lending and what specifics I need to look for.

Sorry for the packed question! I appreciate all responses.

Thank you

(Edit: closing thread)

Hi Andrew, I agree, I'm going to use this as a platform to spring forward!

And technically it's in Redbank, but the very edge of it. It's about 5 mins from Northgate and the busier side of Hixson. 

Did you wait for your capital to build up to buy the other properties outright or did you guys just save enough for a downpayment for those properties?

Appreciate it!

Hi Andres, no, that is with me at another property. Right now I'm -$200 a month because I'm occupying that one side.

$500 cashflow is projected for when I leave and worst case scenario have to set aside alot for capex and rents stay static etc.

Hi Steve,

Providing you are either a veteran or actively serving it CAN be used for first time home buyers, but generally can be used for any residential property to include properties up to 4 units. 

You can also get multiple VA loans however you have to live in each property for at least a year before you go for another. (Owner occupied)

And another stipulation is total VA loans can't exceed an amount ~500K generally as a sum of all of your VA loans. I don't have the exact number but ~500K total VA loan would be a good number to use as a guideline.

Hope this helps!