All Forum Posts by: Julian Sibley

@James Hall keep in mind that you went to Washington Federal, and any banker who works at a big bank is typically a W2 employee. Big banks also don't have as wide of a range of loan products available, so it's common that they don't have suitable products for self-employed borrowers.

So back to your question, better ideas on financing options.... What are you trying to finance? residential properties, commercial properties, a new business?

There are plenty of ways you can finance more properties, it sounds like you have a loan on your 4-plex, 5-plex, one loan on the house with cabins and then a private note? 

Typically you don't run into issues with residential financing (1-4 unit properties) until you get close to 10 mortgages. Financing options will depend on what size down payment you have and what you are trying to purchase. You can even get investor loans on 1-4 unit properties that do not factor in your income, only the debt service coverage on the property you are acquiring. Sure the rates are higher, but not as high as the 9% you are paying on your private note.

@Nate Currier Welcome! I have interest in the Moses Lake area as well. I should be on your side of the mountains once quail opens up if you want to grab some coffee/beer and chat. I have family that owns a place by McCosh park.

Not sure if I can be of help, but I'm always looking to meet other like-minded investors & potential partners.

@Kevin Moore Welcome! Snohomish County is a great area to invest, and the airport at Paine Field will be a major factor. Flights are currently postponed/anticipated to start January 2019 due to the airlines offering more flights out of Paine field than they were originally approved for by the FAA. (Meaning more flights in and out of Everett than originally anticipated).

There's a local meetup in Marysville, WA at the Bob's burgers. It's held on the 4th Monday of every month and usually goes from 7PM until they kick everyone out. They usually post the events on meetup.com under the cascadia investors alliance.

Good luck with your investing!

Not sure if he goes that far North, but @Troy Fisher is who you want to use!

@Bob Faulk I'm not local to you, and I don't work for a bank, but if you're looking for a good mortgage lender I can help you get your investment out of your 4-plex. My work email is linked in my profile if you want to get the ball rolling.

Cheers,

Julian

@Brian Hill you should reach out to Lane Kawaoka, he's on here or his website is simplepassivecashflow.com.

He is in HI as well, and has a good model for building passive income.

@Margaret Nagel There are several lenders in the area that offer rehab loans. If you have enough to do 5% down I'd recommend you look into the Fannie Mae Homestyle renovation loan vs the FHA 203k (which is 3.5% down).

Sometimes you can get around a rehab loan completely (People over-estimate what minimum property requirements are necessary to finance a home) but the concern would then be how do you plan to finance the rehab?

A good overview can be found on the HUD website:

https://www.hud.gov/program_offices/housing/sfh/20...

Would recommend @Tyler Barranger if you haven't found anyone yet.

Cheers!

@Dan D. You should be fine if you're still within the first 14 days, but even if you're not, another hard pull is maybe a couple of points off your FICO in the short-term.

Pre-approval letters, assuming everything else stays the same, are good for about 90 days. This is because you can only close a loan with a credit report that is less than 120 days old. Typical loan process is roughly 30 days, so if you get a home under contract on day 91 most lenders will need/want to pull another credit report. They will also need updated income & asset documentation once the home is under contract, but again, assuming everything stays the same, 90 days is typical for most pre-approval certificates.

Your agent should have a lender in the area they trust, and if they don't, I work in Everett (30-45 min north of Seattle, depending on traffic). Best of luck with your purchase!

@Megan Heffernan The first thing that pops into my head is the utilities expense. @Justin Koehn gave you some great advice by suggesting you charge it back to tenants. You could look into sub-metering or if that is not possible doing RUBS (Ratio Utility Billing System). Or you could simply just include a flat fee in the rent and advertise the units having certain utilities paid for.

Offering below list price is difficult (but not impossible) in western WA, so you need to identify other value add opportunities that will decrease expenses or increase cash flow. You will not find anything turn-key that properly cashflows to your desired metrics/returns. I always double check my rent estimates with what is currently on the market (craigslist, trulia, hot pads) to get an idea of what amenities are being offered for that price. If you think you can get higher rents, then you might be able to make it work.

I highly recommend you look up taxes with the county assessor, NOT using what is listed on redfin. The calculators use estimates and the listing is not always updated to current year's taxes, depending on the listing agent. At the end of the day, once you find your offer price send in an offer and see if it sticks. Then use your inspection/walk-through to be able to confirm your estimates/needed repairs to make sure it will all work before you move forward.