All Forum Posts by: Kelsey Jurewicz

Hi @Constancia R.

     If they are charging you an upfront fee, they are more than likely not legitimate. Some legitimate lenders may charge an application fee, but I'd avoid that if possible. Every lender or broker should be paid at closing, that way everyone is incentivized to get your loan closed. You can search for their NMLS # as well, but in the private money/hard money space there are grey areas in certain states as to whether or not you need to be licensed. If you can't find a single review, that may be a sign; albeit, some smaller lenders with their own fund or private money may not have a ton of reviews versus the bigger lenders. If you are uncertain, just use the search on BP to find one that is well vetted.

So, I've come across 2-1- rate buydowns a few times recently. I understand the general concept of it don't really understand the mechanics of how it works. I was hoping someone could explain how you work this into a contract and how it actually works. 

Thanks in advance. 

Christopher Woodland 

I have an ITIN client looking to purchase a 1.2mm piece of land to build a rec center on in a couple years. Any ideas where I can get her financing? She has 35% to put down, potentially more if needed. 

You can do 80-90% on a cash out refi? For real? 

 What wholesale lender has 90% cash out?

Hey BP Community!

My wife and I are looking to buy a small condo as our first place with the mindset to keep it as an investment. We're considering an ARM as we don't intend to be there much longer than 12 months and feel like rates will go down in the next few years, so I wanted to ask.. what kind of rates are you seeing with ARMS right now? Also, what are the potential downsides to an ARM in our situation?

Thanks!

If you going to get bank lending then the best in my opinion are small local banks and credit unions.  You may also want to talk to a few private lenders and institutional hard money lenders so you know their criteria if you find a hot deal.  

You need to make a decision if Real Estate is your gig.  If houses are expensive where you are, you may need to move to more a cheaper place.  As a young real estate person, I would find a home with as many bedrooms and with the best bedroom to bathroom ratio as possible. Meaning a 3/3 is better then a 3/2, but a 3/2 is better than a 2/2 given the price is similar.   You can put down a modest 3.5% to get into a home. Then rent out the other rooms. Allow those roomates to pay the mortgage.  This is not ideal. But if you live uncomfortable now, you'll live comfortable later.    Make sure you can afford the mortgage without roommates, but let the roommates pay the mortgage. Not being able to afford the mortgage is your landmine. If you mess up your credit you are done.   If you do this every 2-3 years, buying a house, rent out rooms, live in it while you save for next house, buy next house and rent first, repeat on second house etc. You'll wake up in 10 years very happy. 

What’s the best way to get a commercial loan? As of now I have gone through a community bank but due to the building being setup like a condominium with no condominium dues they don’t feel comfortable and want to charge 30% down payment instead of 25%. Any advice on how to deal with a bank for a commercial loan, and which type of bank is best would be greatly appreciated. Thanks

Figure out how your current home would perform as a rental. You can use the BP calculator: https://www.biggerpockets.com/...

If it will work as a rental, then start looking for a new primary home. Purchase a new home to live in, putting down just 3-5% with an FHA loan and occupying it as the owner. Turn your current home into a rental.

That's an easy way to cut your teeth with very little money. Spend a year educating yourself on how to manage that rental and what your next move should be.