All Forum Posts by: Joseph Duenas

Hello. I am purchasing a house for $210,000. I got the owner to agree to owner finance this to me. I will pay $25,000 down, and his mortgage payment of  $1900 per month. There is a balloon due in 18 months. My plan is to rehab this place for about $50K and sell it. 

Question: How should I structure this in a purchase agreement? Should I use a title company? Should I record the purchase agreement with the local government? I just want to make sure I"m safe as I will be giving him $25K and putting in $50K renovations.  Looking forward to your feedback! 

Thank you @David 

@Cha Yang 

@Jerry Padilla Thank you for the feedback! 

I'd appreciate any help from the forum financing gurus out there. 

I have a contract on a house for $210K.  

Repairs costs are estimated at $50K. 

ARV is estimated at about $360K.

I was thinking to finance the $210K purchase via a mortgage (ARM) and put the $50K renovations on my credit cards. This will have me all in at about $260K.

Once the repairs are done, I was thinking to get the house reappraised (hopefully at $360K) and refinance the house at 75% LTV or $270,000. This would allow me to pay off the initial loan, my credit cards, and give me about $10K cash back. I would then rent the house out for a positive cash flow.

Is there a better way to approach financing this? I'd really appreciate the feedback. Thank you. 

@Upen Patel  Thank you very much! 

Thanks Jamie. Appreciate the feedback. 

Hello all. I'm hoping to get some good financing advice on how much and how many mortgages the banks will provide me.  I've been told that I can get four Freddie Mac loans at low interest rates. After this, I'm assuming that I would have to get a portfolio or commercial loan from the bank on additional properties. 

Question 1: How many conventional (Freddie)  loans will the bank give me for rental properties?  

Question 2: Do they have they have a cap. 

Question 3: If Freddie Mac Loans are loans with the lowest interest rates, should I start by maxing these out (e.g. four). 

Question 4: How much will the bank loan me? Do they have a loan cap? How do they determine this? 

Thanks folks. I've been  investing for over ten years, and wanted to finance more buy and holds. 

I was in a similar situation as you. What I did was a Business Line of Credit on all of the properties. The properties were appraised, and the bank gave a line based on 70% the value of all the properties. If you have $900K worth of properties, the bank may give you a line for $630K. It's an interest only line of credit. I only pay interest.  Here's the challenge, the line is renewed every year, so the bank wants to see the line used and paid down. What I've learned with this structure is to ensure the you are consistently paying down on principal, or you risk the bank eventually calling in the note, or asking you to restructure.