All Forum Posts by: Logan Drew

Yes, capital gains count as income and can be used to qualify for a conventional/ conforming mortgage.  You may run into an underwriter that wants to see a 2 year history of that type of income, but there are operations out there that can possibly approve you with just 1 year tax returns.  When contacting lenders/ mortgage brokers in your area, please be sure to mention your exact scenario up front so that you don't waste time with a lender that can't help you.

Hmmmm... how's your track record? Do you have a list of recent, successful projects over the last 24 mos? I have seen these get done with a JV or on a very strong ARV appraisal if you have a well outlined, line item pro forma construction budget and very good credentials. Is there any chance you can get plans and permits during your contract period? You can usually get 65%-70% of the $600k ARV if you have all of your ducks in a row. Can you locate the $30,000-$60,000 to close the gap? I'll message you if you want to talk in more detail.

1 year is the general rule for owner occupancy. If keeping the owner occ loans long-term and moving on to the next deal(s) as owner-occ, you will run into tougher guidelines on your 5th property and then you are cutoff from conforming financing after your 10th (as was mentioned above. You are usually capped at 6 properties if your middle credit score is below 720. I just had to deny a refi client who has 7 properties financed because his credit score was 682. There are alt-QM (alternative documentation or portfolio-type) products for anything that doesn't fit the usual Fannie/ Freddie/ FHA mold... but your approach will get you the best rate/ lowest down.

I agree with Don.  I think your father-in-law's attorney is mixing up something he read about the new TRID rules that started 10/3 that relate to consumer loans/ mortgages and is mistakenly applying what he read to all types of real estate financing.  Most private lenders certify that their lien is for 'business purposes', at which point you are not making a 'consumer loan' and you do not fall under the same rules.  There are concerns though with making these types of loans against a primary residence and probably in the process of aiding someone in their search for another primary residence.  I would consult a different attorney who has experience is this realm or one that specializes in real estate or lending.  You should be able to put a lien against your father-in-law's home for money that you loaned him, but you should be careful about the rate and fees you charge and you should consult with an attorney.  In short, if your rate and fees are in line with the market or below market for what is considered customary on primary residence lending, an attorney will probably say you are fine (again, consult with an attorney as I am not one). 

Will the seller carry until you sell the property?

@Anna Greer If you are not in an FHA loan currently, there are portfolio lenders out there that will refinance your condo into a 30 year fixed or a fixed period ARM if the LTV is less than 80% and if you don't mind a higher than market rate.

Absolutely... Looking forward to helping in any way that I can.

I can.  Prefer to keep it in CA, but if it's a major metro area, I can facilitate funding in most cases.

Let me know if you need me to look at anything.

If you are searching for private money or hard money in California, please give me a call or email. I can source rates as low as 6.99%-7.49% with no or minimal documentation required.

I am a direct lender lending to real estate investors and primary homeowners and can provide full doc, conforming rates to those who qualify. Turn times are less than 2 weeks for conforming purchases and refinances. Business-use/ private/ hard money also available for more difficult or no/ low documentation scenarios.