All Forum Posts by: Luis Roel

That would be a hard sell to any of my lenders.

Even though it is cash, no one wants to be tied up in the potential litigative mess that it could turn into. 

Most banks (believe it or not) do not understand or follow the concept of real estate investment. It would really ease a lot of your troubles if you worked with a lender who was investor friendly instead of trying to fight banks that don't really do what it is you'd want them to do. 

But as others have said, your debt to income ratio is pretty high. How much do you have in reserves? How much money do you have for a down payment?

Hey Sean,

That's odd. Do you live in any of them? If not (and you own an LLC) then maybe I can help you.

No, there are usually no corporate seasoning requirements for an HML. You could, potentially. But you would have to somehow present reserves. And if you haven't has a business bank account then some lenders will give you trouble. Many of them however, don't care and will just take your personal account as proof of reserves.

@Jill H. http://www.padstyler.com/

It definitely helps to have good credit but as a hard money lender, it's not something we really care about. We're more concerned about what your bank statements show and that your credit history is clean. 

Meaning, no bankruptcies, no late mortgage payments, little to no delinquent accounts, etc. And more than anything we're concerned with experience. Is this your first project? How many flips have you successfully completed in the last six months? In the last 12?

As you develop a relationship with your lender and build a good payment history, credits matters even less.

 15% percent is a little high, even for people new to real estate investment.

Typical rates top out at 12.5% with 5% origination.

Hey Aaron,

Could you come up with 10%? I would advise for an FHA loan but not sure if you'd be living in the property.

As everyone else has said, the best course of action would be to liquidate the home. 

There are lenders that will refinance a mobile home so you might be able to pull some equity out of it but being completely honest with you it makes no sense to get a loan that way when you can just liquidate it and not owe anything. It would be an unnecessary liability on your part.

If you can find a seller that would be willing to collateralize the motor home (which would be highly unlikely) then that would be the other option.

If you have two rental properties and they're free and clear then another option would be to pull out some equity out of those.

Yet another option would be to get a personal or business loan secured by the motor home. But again, it makes no financial sense to do that.

Let me know if there's anything I can help you with!

That's odd. Is the house habitable, does the water run, do the lights work?

If it meets the housing and urban development's minimum property standards and requirements then there should be no problem.