All Forum Posts by: Steve LeBlanc

@Wenda Wang

Wenda,

I typically purchase 1-4 unit properties, therefore a commercial product would not be useful unless we did pursue a commercial property. Great suggestion.

Jason,

Thanks for the inputs and suggestions.

Co-signing is not an option.  As I already have 10 Fannie/Freddie mortgages, I am no longer eligible for conventional financing, not even as a co-signer.

You are correct, the objective is to avoid hard money...it's not economically feasible for this strategy.  The intent is to secure 30 year conventional financing in her name.  

Gifted money cannot be used in investment transactions.

She has capital to purchase properties using cash. I should have been clear that the strategy is for long term cash flow. Therefore, it's important to leverage the cash that she has by purchasing multiple properties with 25% down, therefore maximizing ROI and cash flow.

Thanks again.


 

I'm a seasoned investor with a modest cash flowing portfolio ($2.8M value, $200K annual gross income) and capital in the bank.  My wife and I have left the workforce and consider ourselves retired for the time being.  I am 42, she is 37. We still want to pursue investments though.  I have 10 Fannie/Freddie mortgages under my name only.  The wife has zero.

Our current limiting factors are that I have the 10 mortgages and neither of us have W2 income.  I have reportable income from other sources (pension), but the goal here is to get some mortgages under my wife's name, who does not have any reportable income at the moment, and getting a job is not an option as she just left her six figure position for retirement.

What's the best way to work around this situation?

Who are the lenders that are lending against forecasted rental income from the subject properties?  Do they exist?

@Stephanie P  I couldn't agree with you more.  The generalization was more for the attention it would grab than anything else. I will say though that it wasn't a one-off scenario. More often than not, folks in the lending industry seem to lack the experience in dealing with investors.  Having spoken to dozens of lenders in the past, only a few have had experience even with basic investor portfolios or situations.  Thank you for the input. 

Thanks for taking the time to respond. Great inputs.  Thank you for clearing up some terms for me....very helpful.  

Not a d*ck at all, I appreciate the feedback. @Russel Brazil. 

I would agree with your assessment, and had learned lessons in the earlier years to apply to lender selection.  

But when I come to a lender on day one and lay out the complete picture, and they do the whole "oh yeah, we can do this" line, only to fall on their face weeks later, so disappointing.  

A specific example; I went to Mutual of Omaha because I had previously used the actual loan officer in previous years.  He moved to this new company a couple of year ago. I told them I bought the property 4 weeks prior and asked do you have any seasoning requirements? The answer was "no".  I also let them know that it was an arms-length transaction and was a cash buy (my own money, no hard money).  The deal qualified for delayed financing exception.  Then 8 weeks letter, denied for "less than 6 months ownership" and zero communication from the loan officer. I had to get the branch manager on the phone, only for him to tell me "sorry, the underwriter's decision is final and I can't do anything to help you". 

Local lenders aren't touching out of state borrowers. Been down that path multiple times.  

Seasoning is not always required. At the link that you shared, there is an exception to seasoning, which I met all the requirements for:

Borrowers who purchased the subject property within the past six months (measured from the date on which the property was purchased to the disbursement date of the new mortgage loan) are eligible for a cash-out refinance if all of the following requirements are met.

You'll pay about 1% more on the rate (on average), that's about it. 

It was a cash purchase. 

This is a venting post, so please bear with me.

I just spent 60 days in underwriting with Mutual of Omaha, Chesterfield MO only to be told today that my credit request was denied for "unable to verify income" and "cash out refi with less than 6 months ownership".

Now, this wouldn't surprise me at all if I was self employed or I hadn't told the broker on day one that I just bought the property and asked if there were any seasoning requirements...to which he replied "no".

After financing investment properties for over 14 years, I've yet to come across a lending team that actually had their ducks in a row and really knew how to process an investor's file.

Delayed financing on investment properties with borrowers who are seasoned, cash flowing, solvent and top shelf should not be rocket science....yet it always seems to be the most difficult thing these lenders have ever come across.  

Brokers and underwriters don't have a clue how to deal with investors (within Fannie/Freddie guidelines), change my mind.

And, who has the best terms on delayed financing for a 4 plex in Alabama?