All Forum Posts by: Luis Astudillo

Hello Iris, How are you? I am a licensed mortgage broker for residential and commercial mortgage loans. Based on the information that you have given, the loan application would be in your name since you seem to be the only one employed and use the rental income (75% of rent) to fully qualify you using your employment income, rental income versus your liabilities. On the other hand, DSCR loan programs have become very popular mostly because no proof of income is required and the qualification is based on the cash flow of the property. I will be happy to help you and your husband throughout the loan process let me know when will be a good time to chat.

I would have to agree with all of the people that have replied to your post, and I think you may be  referring to other people's money" There is a reason that they are called private lenders, their qualification approval guidelines are based mostly on the amount of money one puts down. Fairfax County is among the most expensive counties in the USA behind Loundon County and Arlington County. What do you have in mind? 

As far as I know, you should be able to pay down the principle amount without any penalties. 

Costin, 

A prepayment is an interest-based: The lender charges a specific time period's worth of interest—say, 6 months' worth—if you pay off your loan early. DSCR loan programs have pre-payment options from 0 years to 5 years. With a 0 years option more than likely your interest rate will be higher than it would be for a 5 years pre-payment option. Now, whichever option one chooses the rate is fixed for the next 30 years. The pre-payment option; is my understanding, that the pre-payment option is only executed when the loan is refinanced or the property sold.

Hey Hakim, 

Sure thing, one of the main things to understand is that you have to know how ready are you to purchase the business/property, and you do that by providing all your financials to see if you have enough capital and reserves. Let me give you an example, I believe the asking price is $3 million, you will need anywhere from 20% to 30% downpayment between $600K and $900K ( private lenders may ask for more downpayment) Then you will finance between $2.4 million and $2.1 million and your payments could be $20k a month which a lender could ask for 12 months reserves. Once you know how much you qualify for, then you can either move forward with your current capital and reserves. If you are not quite ready then you can do a lease option where the majority of the lease payments will go towards your downpayment that will be applied towards the "future purchase" two or three years down the road. I don't know where the bar is located nor do I know if the property is worth $3 million, you have to do your homework on this project. Legitimate hard money lenders and private lenders may not ask for business taxes, bank statements, or other documentation but they will ask for much more money down, their terms are usually 12 to 24 months loans, and higher interest rates. You have to decide how you want to approach this and what type of financing is best for you, commercial financing, hard money, private lending, and/or seller's financing (owner). Let me know if you have any questions. 

Hello Larry, 

How are you? I see that you did not receive any replies from anybody. I am not an investor but a residential/commercial broker; I am new in BiggerPockets I was just customizing my preferences and Richmond is one of the areas as I do loans for primary, fix and flip, and rental properties. Basically; there are loans for consumers looking to buy and hold a real estate dwelling as a "rental home" for the long term. Let me know if you are still interested in the topic you posted a while ago. Thanks. 

Luis 

 Good morning Hakim,

My name is Luis, I am a residential/commercial broker. If you are to make an offer to purchase the property the seller in this case has the option to honor your offer to purchase and not lease the property while your loan to purchase the property is in process. With the lease to purchase the seller more than likely would ask for a deposit that can be applied toward the down payment when the actual sales take place or the seller can "finance" a certain portion of the down payment. What I think is important is to know what your financial strength is purchase the property to structure a loan to best fit your needs or come up with a strategy to allow you to buy the property say in a lease with an option to purchase. You could have several alternatives as to how to purchase. Let me know when it is a good time to chat about your real estate needs. Thanks.

Luis

 Hey Gustavo, 

DSCR loans do have pre pay penalties from 0 years to 5 years. With 0 prepay the interest will be much higher than if you were to choose a 5 year pre pay. Your loan officer should help you decide which pre pay option is best for you.

 Hey Brandon,

How are you? I am a mortgage broker, I saw most of the replies, have you been pre-qualified?, second home could be a start, $50K for downpayment may not be enough. Now, if you are getting a job in Florida doing the same thing you are doing then you would only need 3% to 5% to purchase a primary home; assuming that your credit score is over 620. Shoot me an email to discuss your real estate needs. 

I am a mortgage broker; I haven't done any loans in Detroit but this is where you do your due dilingence by calling the title company and finding out what their cost/fees for doing the settlement will be; you would have to give them the subject property address, and tell them that is an investment property. Once you have found out what their fees are, you need to find out how many months of property taxes you would have to pay as a buyer, then call your insurance company to find out how much your annual premium will be; there may be aditional fees in Detroit that I may not be aware of. Add all those fees plus however many points your lender is charging you. In a DSCR loan, a lender/broker would charge an average of 2 to 3 points of the loan amount.