All Forum Posts by: Joshua Davies

Hi All, I am looking for an investor friendly lender in Middle TN to finance a primary residence. I am looking to buy in Franklin, TN next July and liking to speak with lenders regarding my situation. I currently have one rental property, a duplex that cash flows well, and currently under contract on another duplex. From what I have been reading over the last few months, lenders will be able to use the rental income from my schedule E, or signed leases (using 75% of gross income) to qualify as income to be added to my W-2 income. However, I have been speaking with a couple lenders in TN and they have told me they will require landlord experience (minimum 2 years) to be able to count this income. I would really like to work with a lender who will use the income right away - by the time I buy I will have 6 months seasoning. If anybody here can shed some light on this topic or recommend a lender it would be greatly appreciated. Thanks.

If any commercial lenders have any insight on the “out of state borrower” please let me know. How many loans can I take out being based outside of the state I’m investing in?

@Lucas Carl he has provided lenders, but never hurts to ask for other recommendations also. Feel free to PM me.

@Lucas Carl there is plenty that will cash flow. I bought a duplex in Columbia that is renting at 1.5x the purchase price and is cash flowing at over $600 a month. The deals are out there, but you have to act quickly as they get snapped up.

@Lucas Carl the properties are in surrounding areas of Nashville, I am just looking for a lender that is based in middle TN.

Hi All, Can anybody in the Nashville area recommend an investor friendly lender? This will need to be a small bank who holds loans in their own portfolio. I need a commercial lender due to me not having 2 years work history in the US. I recently closed on a duplex, financed on a commercial note at 20% down. The duplex is fully rented with signed lease agreements and cash flowing well. I then had a quadplex under contract and attempted to finance this with the same bank and they told me they could not move forward with the loan due to me being “out of state” (I am based in California but moving to Nashville soon). This didn’t make sense to me as they financed the first duplex with no problems? So now I need a good lender that can help me out with purchasing another investment property. My other question is, were the 2 loan applications too close together? Am I required to wait a certain amount of time before taking out another loan? If anybody knows any lenders that will also take potential income of the new property into consideration that would be great. Thank you, Josh

@David Wright thank you for the reply! I guess they may have given me a reason just to give me one. I will keep shopping around for lenders... if anybody has a good recommendation in the middle TN area, please let me know. Thanks!

Hi All,

I have a question regarding commercial lending as I was recently denied a loan for my second investment property. In summary, I am working with a small bank (out of state) and the same bank holds the note on my first investment property. 

I recently purchased a duplex for $100,000 on a 5 year ARM at 5.49% interest ammortized over 20 years, and at the time of applying for the second loan I had one leased signed at $800 per month. I am a W-2 earner and earn a pretty decent wage here in California and have zero debt (apart from now the duplex).

I applied for the second loan around a week later, this was for a quadplex at $190,000 with a partner. This application was denied based on "not getting the numbers to work" and "out of state borrowers". My assumption was that the bank would use the rental income from the duplex to offset the debt? And also possibly take into consideration the potential income from the quadplex?

If there are any commercial lenders out there that could help me understand why this loan would be denied - were the 2 loan applications too close together? If it was for the "out of state reason" then why was my first loan approved? I was also under the impression that most lenders will take 75% of rents to qualify the borrower if the property is not seasoned.

If anybody could shed some light on this topic, that would be great.

Thanks in advance!

@Ian Tan I am also a California resident that invests out of state. Please feel free to reach out, I would be happy to answer any questions you may have. J

Hi All,

I have a question on a commercial loan for a duplex that I have under contract in TN. My situation unfortunately disqualifies me for a conventional loan at the moment, as I only have 1 year of work history/tax returns in the US.

I was previously employed in the UK, however due to a 1 year gap in employment history (whilst I was going through the immigration process and was legally not allowed to work) my lender has told me they will not be able to complete the loan.

This leads me to commercial loans! Please could anybody tell me if based on my 1 year employment history, would I even qualify for a commercial loan?

As far as I'm aware, commercial lending is primarily based on the financial performance of the property and less on the individual although I would of course personally guarantee the loan.

If anybody has some insight on this topic, it would be greatly appreciated.

Thanks!