All Forum Posts by: Justin Wilcox

Thanks for the referral, I will check it out!

Bob, I sent over that sheet since I can't post it here. Did you check with Caliber? 

Caliber seems to be the only ones in the area who seem to be open to more risky loans. Rocket Mort. has a program where you can do 15% on an investment property. You will still have PMI. What makes it difficult with the hard money or most portfolio lenders is the fact that the high APR blows the 50% / 2% rule out of the water.

Most everyone wants 20-25% down which, you might as well do conventional lending at that point unless your debt to income is too high not allowing you to do so or banks put their foot down on too many properties with the amount of cash you have. 

Caliber after four properties wants at least six months worth of payments for each property before they will lend again. I have only gotten a hold of Brandon at the Scottsdale office once, I've called 3 times in the last three business days w/ no response. 

Some local banks that might be able to help depending on your situation:

National Bank of AZ

MidFirst Bank

1st Bank of AZ

Washington Federal

I called a bunch of them, some would do loans and some would not. This is just the list I put together when looking for banks who might...

A national portfolio lender (CALCAP Financial) reached out to me with the following rates today: (they did also want 25% down) with rates ranging from 7-11% APR with varying LTV for SFRs, Muti family, apartments and rehabs. Fees were around $2000. Lmk if you want I can get you the quote sheet if you like.

Hi Bob, I have been on the hunt myself. Nobody local really seems to carry portfolio loans outside of Caliber home loans. I have had a hard time getting a hold of anyone in the Scottsdale office. 

What are you wanting to accomplish? 

On the commercial front, I would need 20% down. Or owner occupy SBA. Apparently it is a huge and massively time consuming task to change the zoning out, otherwise the seller said they would of already done it. Its been on market for 180 days, I would think that in that time you could do a lot...

I have found two properties that will cash flow and fit the 50% rule.  One I am particularly fond of because of location and price. The issue is it is coded as a light industrial property. Traditional financing does not work. I thought about applying to change the zoning but that appears to be a monumental task. 

I asked the seller if they would carry, and they are willing for $60k down. If I could find 175k cash to buy the property and than take a loan out against the property to pay the initial loan back.... That would be ideal. Hard money lenders are not interested. I don't even know if a portfolio lender would look at this deal? I do have $20k, so I do have SOMETHING to put into the deal. Just not much right now.

I tossed around the idea of an SBA but I would be needing 20% down or have the sole business generate income for the property for the 3.5% down but I am also W2'd which pulls that option off of the table. 

The other property, the realtor says that it won't pass inspection for electrical issues, roof issues and AC (also the windows are sealed so apparently this is a safety hazard?)

I am not as big of fan of this property but it would cash flow nicely... 

Anyhow, just looking for some strategies on how to make these deals work as I have done a lot myself and keep coming up empty handed. 

Thanks!

Wow, the response to this thread has been phenomenal. Thank you so much to everyone who contributed! 

Thank you BP for all of your help! She put the pressure on me last night about an hour after she sent over her references saying she had to know right away. Seeing as it is Sunday, I am not inclined to do any research today. 

I will message her back on Monday and let her know that I have decided to go a different direction with that room. 

BP thanks again for your contributions! 

I have a room for rent and I happen to know that the person who wants to rent it would not be a good tenant because they have had not paid their rent in the past and cause problems for other tenants. 

It was not documented as far as I can tell, how else do I go about rejecting this application?

The source telling me this is a close friend who lived with her at one point. 

Legally I want to stay out of trouble. 

I asked for a list previous landlords, and she did not provide the previous landlord that she had issues.

Thanks BP!

I don't come from a lot of money family wise. I've managed to stay debt free my entire life through college and getting my MBA. I would think maybe my Dad might do it, but he is so risk adverse that I don't think he would. 

As for other strategies, I suppose I could ask the owner if they would finance?

The only other option I can think of is to re appraise my house I am in now with all the upgrades and remodeling I've done and attempt a HELOC and hope that it would be enough for 20% for a rental property to get conventional loan and rate.

I am already living in my my own home that I purchased about three months ago and finished the renovations in it. 

I have found a property that I am positive I can cashflow $7-750 a month.  The issue is that I don't have 20% to put down on the property. I have heard that I could make the property my second home and main residence and then just rent the one I am in but I was under the impression that I would have to live in it for a year.

I suppose I could do that but I have a friend who is a girl that I was hoping to have manage the home. (tenants bills ect. and give her a break on rent) I would rather just have it as an income property and avoid any legality issues.

Are there lenders that will do this type of loan for me? If so, what should I recommend or avoid when attempting to take out this type of loan? 

Thank you!