All Forum Posts by: Loren Davy

Thank you for your service. As stated VA loans have stricter rules for property condition. With FHA you would have to put down 3.5%. IMO try to find a fourplex, more doors increases economies of scale. If you find a property that is distressed and needs some repairs, use FHA loan and you can force some appreciation which will help increase your wealth quicker.

Keep asking questions and Good luck on your adventure. 

Look into a commercial loan, commercial lenders are more concerned about the property; but they will still look at your credit and income. What type of property are you looking at SFR or multifamily?

it all depends what your long term goals are and your risk tolerance. If your plan is to grow, you can possibly sell one property and buy two at a higher LTV and now cash flow 400. If you don't want that much leverage, keep the property and enjoy 200 a month or save it. You have many options, base your decision on your end goal and move in that direction.

I want to watch this thread.

The hardest part is finding someone to train you. Becoming an appraiser is an apprenticeship program, the only way to do it is to have someone willing to train you.

Portfolio lenders are tough to find, but they are out there so keep looking. Look at credit unions and local banks (2-5 branches). You say each property is profitable, put them through the BP calculator and print them; now you have actual number to show a lender that they are profitable. Also create a balance sheet that shows property value, loan amount, int rate, total payment,principle payment, int payment, insurance payment, and LTV (let me know if you want an example). A lender can look at the balance sheet and make a quick decision, then dig into each property if they want. Also have past two years of taxes and be ready to provide two months bank statements of business and personal checking accounts.

If you can't find a local portfolio lender, there are some national lenders that will lend on 5 or more properties. But, these are commercial loans; higher int rate, lower LTV ratios. Check out RCN Capital.

Let me know if you have any questions. Good luck. 

use the rental analyzer on BP to see what your cash flow will be. Make sure you add in MA agent fees, even if you plan to self manage. Do you plan to outsource management or self-manage? Cheap properties are usually in not so good neighborhoods and need more maintenance. Managing them can be tough. Properties under 50k are hard to finance, and rural makes Financing even worse for you as a buyer, and as a seller when you decide to exit. Ask about owner Financing. Let me know if you have any specific questions. Good luck. 

Hi Jennifer,

Welcome to BP. There is a ton of good Free information here about every aspect of REI. Do not be afraid to ask question in the forums or of individuals. Good luck on your adventure.

Loren Davy

Most HML will require broker opinions, some may want an appraisal to verify the ARV.

Welcome to BP. There is a monthly REI meeting, search Permian basin real estate investors group meetup. There is a lot of information out there, ask if you have any questions. Good luck on your adventure.