All Forum Posts by: Linda Garcia

An unsecured loan, as this one seems to be, would not be eligible as a source of funds for someone doing conventional financing. If they were to deposit it into their account, we would back that deposit out from their balance as if it never existed, which then puts them in a position where they are still not showing sufficient funds to close or reserves and won't qualify for the loan. If they don't have the funds at the beginning, I'm not sure where they would have the funds to pay you back ever? I could see this being useful in a BRRRR scenario, but in that case you could be looking at a much longer term loan than 30-60 days, especially given supply chain issues and the uncertainty of the person being able to qualify for the cash out loan as rates continue to climb.

We had a client recently need one of these and was able to obtain one through Bank of Marin. The property was in Napa and I'm not sure if they have guidelines where they will only lend in the Napa/Sonoma/Marin area, but I see you're in CA, so it's worth a call if you are still searching.

Hi there! I was hoping to find someone my husband and I could shadow while you are out and about looking at properties and doing your rehab estimates for flips or BRRRR. We have a real estate background, but this would be our first venture doing flips and/or BRRRR as a business. Before I take the leap and buy a property, I'd like to have more confidence in estimating so when Irun my numbers I have more certainty. We're in the upper west side of Peoria, so anything on this side of 17 or north of Bell would be ideal, but we're flexiable!

Hey there! I as a lender, would recommend talking to your trusted lender about a 203k and look at the costs. While the 203k has its place for some, it is also comes with a lot of expenses. You are required to have (pay for) a 203k consultant, then add in all the normal costs and it adds up quick. As others mentioned, a 3 or 4 unit project is pretty close to impossible to do in a lot of markets since the projected rents have to cover the entire mortgage payment (of all the customers I have worked with, not a single one has been able to do the program on 3 or 4 untis). There is another low down payment option, depending on your income, that doesn't have as many restrictions or costs. With that said, if you are set on the 203k, hold tight if you can. FHA is expected to lower it's UFMIP and/or monthly mortgage insurance here shortly, so I would check the news. It could make your cash go farther. : )