All Forum Posts by: Derek Brickley

Hey Michael! 

Not uncommon, not sure what program you were using or what you're looking for but definitely a few alternatives.  Feel free to reach out if that might be helpful for you though!

There are some options for purchasing/cashing out on a primary that don't look at Debt-to-income ratios.  With the cashout option though, you would need to take the full amount upfront which might not be as beneficial but if you have an immediate use for it then it could be an option for you.  If you have questions on that feel free to reach out!

Hey Elan!

You'll definitely find a ton of people who can help here, hard to say which options could work best but feel free to reach out if it might be helpful for you to look at some of those.

Hey Juliette!

The age old question hahah is your primary residence an FHA/VA/USDA loan or a conventional loan? Conventional I'd argue it doesn't make sense to refinance in most cases unless you qualify for subsidized rates through some sort of program. If you're at 7.25% on FHA/VA/USDA it might make sense depending on your situation. For the rental though there isn't a strong advantage to waiting. As you already know rates would be significantly below that and if you expect rates to drop further you can take a higher rate on the refinance to get a credit to cover all of your costs.

If rates continue to come down, great you can refinance every 6 months (more or less).  The unfortunate aspect we see all too often is when people miss their opportunity to refinance because rates spiked back up and they're forced to keep paying the higher rate.

The way a lot of people right now are balancing this is doing a longer-term rate lock on a refinance - say 45 or 60 days.  This way you're protected from rates increasing over that time period.  Though if rates do improve anytime between when you lock and when you officially close on the refinance, you can get lowered down to the better rate once and that doesn't cost you as a borrower to do.  If it's helpful to go through how that works, feel free to reach out!

That's not too far off unfortunately, we wouldn't even be able to do that on DSCR. Though there is another option we actually just closed for someone in Montgomery with on Friday that gets rid of those costs. Not sure if it would work for you specifically or not but feel free to reach out if it might be useful.

Hey Monica!

Definitely great questions and the short answer is 'it depends' hahah

1. Unless it is absolutely needed, I'm never an advocate for putting more money down.  Even if your rate was 8% (it wouldn't be) you could still invest those additional funds into the market and average out a better return.  Mortgage insurance probably isn't as costly as you might think

2. Seems like only you would know the answer to that question - if you can work an hour of overtime at your job and get $50/hr, if a deal requires you to mow the lawn or something for an hour shouldn't that be valued the same way (I would argue yes).  Consider how much money you could be making doing something else (or how little money you would accept/hr to do something) and compare that to the actual time spent.
3. Vetting the tenants is always talked about in length but it's going to be so important if you or your sister live there.  It's important to find a place you'd want to live (since you actually will) and then that also tends to be important for marketing it as a rental.

Hey Robert!

Looks like you've gotten some good responses, unfortunately that's the risk of non investor friendly lenders.  Just to confirm is it an 1120 or and 1120-S? Income is considered differently for both.  

Either way there are ways to account for that income within guidelines for a few different programs, but if it would be helpful to go through some of those to see if that might work feel free to reach out.

Hey AJ!
Pretty common actually, sounds like you'd be possibly looking for a form of delayed financing. That can be done DSCR or conventional but it just depends on the exact details of your deal. There are conventional options as well to keep it in your LLC if it's vested in one now.

A few differences than just a traditional cash out refinance but if it's helpful to look at that feel free to reach out.

Hey Mike!

Yep actually pretty common depending on what kind of deal you're looking at.  Feel free to reach out if you have questions on how that works or the tradeoffs!

Hey Aswin!

I might be biased, but I think you'll love it.  My background was in data science, statistics, and economics (mainly econometrics) and I couldn't have landed in a better place.  A lot of carry-overs that make it easier for us to understand the markets and pricing (the numbers tell a story).

You may want to work to find a company that will bring you on as an LOA for a short time while you're getting licensed (and maybe they can help sponsor your testing).  If not that works too, highly recommend MLO Study Buddy as a resource but any and all practice exams you can find will be helpful.  I'm up in Michigan, but we do have a few branches in your area I believe so if it's helpful to connect with someone local happy to make that connection.  

Biggest challenges: ...everything haha, even if you're a quick learner and can adapt on the fly building a book of business takes a lot of time and effort (still working on it).  Leverage your network and the knowledge you have now to set yourself apart in some way.  Once you get a basic understanding of the concepts, make sure you have a team who can support you and then hit the phones!