All Forum Posts by: Derek Brickley

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! 

Hey David!  For a while at least, you would've seen both those numbers before.  Though the upfront fees are definitely a factor, if I could share my experience (both as a lender and investor)...

APR is meant to be an annualized reflection of the total costs incurred over the duration of the mortgage. So think of it as the total cost of borrowing money. The hard part that a lot of people miss is that this is calculated over 30 years (or whatever your term is for your loan). With rates where they are, I'd expect you don't plan to be in the mortgage for more than 3–5 years (maybe less) depending on where the bond market goes. With that being the case, that APR calculation is SIGNIFICANTLY off. So what you'll want to pay attention to is the total upfront costs and how that impacts your interest rate - I'd encourage you if your lender hasn't already to do a break-even calculation to determine based on your hold and strategy how much costs yield you a positive ROI. With rates being where they are, it's hard to get a positive yield on higher upfront costs over a 3-5 year period.

Hey Abby!

The problem you're going to run into is Fannie/Freddie doesn't allow second home loans on anything but a single family residence (yes can be condo, townhouse, etc. just not 2-4 unit) so you're automatically thrown into the investment loan world.

Hey Zenas! 

Nope doesn't change anything.  Some times you an go 5% borrower contribution, but 10% will open up more avenues for you.  Depending on your deal, reserves may or may not be required to be in your name - although you can use other accounts i.e. 401ks, IRAs, etc. towards that reserve requirement.  Feel free to reach out though if you have questions on how that could work.

Hey Mark!  

Yes we definitely do and you'll probably find a number of us here who could help with that.  Note that the 15% down options of course have higher rates.  As long as credit is good/fair and the debt-service ratio is above 1.0 you shouldn't have any issues with that.  Feel free to reach out if you have any other questions though!