All Forum Posts by: Ko Kashiwagi

Hi Collin,

Probably the most simple way is to gather more capital, 20-30k more if possible. There's creative financing method to get started with 10k like seller financing or sub-to, but this will take a lot more effort. If you can secure a deal, you can get into deals with very little down. Alternatively, you could partner with someone with more capital!

Hi Felix,

Congratulations on the first 2 BRRRRs!

1. Generally, the more simpler move is to do a cash out refinance rather than to get a hard money. The ability to make a cash offer and the absence of steps required to obtain hard money makes it easier. If you also can get out of the FHA loan, you could stop paying the PMI and decrease payment for insurance. Given you will likely refinance anyways in the next few years, refinancing may be more cost-effective. Using hard money will provide more leverage, but it comes with more risks, so it only makes sense if you have a higher risk tolerance.

2 & 3. There are specific occupancy requirements on the FHA loan, and generally you have to make payments for at least 6 months. As you stated, the best practice is to confirm with your current lender and read the loan agreement.

Happy to discuss further!

Hi Kyle!

Seems like you used to be in real estate and are now back? Welcome back! Happy to connect.

Hi Dustin,

Are you putting any value-add on this property? A cash our refinance only makes sense if you've increased your equity after you bought.

In terms of the DTI issue, you can overcome this by obtaining commercial loans like DSCR and hard money financing, rather than conventional. Happy to discuss further.

Hi George,

If you have the cash to buy your next property with financing, it's not necessary to do a cash out refinance. However, if this cash out refinance is necessary to do your next investment and the investment provides superior return than the higher cash flow you are currently receiving, it's worth doing it. I would also point out that it's unlikely the rates will come down close to 2.99% within the next year, so sitting on the sideline for years is a risk in of itself.

Alternatively, you could get a 2nd mortgage that would allow you to keep the first mortgage at 2.99%.

Hi Rahul,

Was this a business purpose loan, like a DSCR? If so, this seems about what most lenders would offer. You could get better rates if you get a conventional financing.

Hi Jordan,

Fix and flip loans are different than DSCR loans. For a DSCR loan, rates in the 7's with 1-2 points sound about right. I'd get quotes from a couple lenders and just go with the best one or the one you'd want to build a relationship with.

Hi Venkata,

Conventional products have 12 months seasoning, so a business purpose program like the DSCR loan may be more suitable for this refinance. If you're looking to consider a variety of options, a broker will be able to help you compare different programs. Happy to help!

Hi Peyton,

In general, it doesn't hurt to have a lender in place earlier. The timeline can depend on the your closing is. If you have a month to close on a property, it shouldn't be difficult to get funding even if you start talking to lenders after you are under contract. With that being said, it's a good idea to get an understanding of what kind of financing you will use and what you will qualify for, so you know what to expect in terms of leverage, rates and terms. Happy to help!

Hi Daniel,

You need to look at comparables in the area that are similar to the subject property and make adjustments. And yes, rates could change but your payment is likely much lower for a 30 year fixed, so I'd recommend comparing those numbers.

I've sent you a DM!