All Forum Posts by: Matt Nico

@Matt Nico I would suggest a Refi with Hard Money. A 30yr fully amortized Portfolio Loan on the properties you already have. That way it wouldn't affect your DTI, no need of proof your income, etc. and you can go ahead with your strategy. BTW it can be done with an LLC.

@Matt Nico lots of good stuff.

You can go to the commercial loan origination route this lenders focus on the income of the property and your fico score. Low fico is ok just LTV and rate adjustments on a scale. You can close title to a LLC and you could be asked to be the guarantor on the loan but won't be reported in your credit. This will clear your DTI and may reset to get favorable terms again.

Also there are bank statements loans available for self employed if you pass most income through the LLC.

Hi everyone,

Prior to the crisis of the pandemic really started to take effect, I had a 2 bedroom apartment up for rent.  It was listed at a competitive price and I was getting a good amount of interest.  I actually had to deny 3 applicants.  I wasn't worried that this was going to sit vacant too long.  However, once panic set in a bit more, I haven't had much interest (as expected).  I'm wondering if others are in this situation and what you plan to do?  Are you planning on dropping your price to aggressively pursue occupancy still or are you going to just wait it out (assuming it was and still is competitively priced).  There is a piece of me that thinks that even if I drop my price, people still won't show interest because of fear of coming to a showing or other interactions associated with getting a new apartment.

I was also kicking around the idea of an "adjustable rent" type of strategy where I offer rent at say $500 per month for three months to weather this storm, then it jumps back up to market price (defined in the lease).  I would still underwrite the tenant based on the market rent. 

Just looking to get others thoughts and idea on this whole situation!

Matt, I was in your shoes some time back. My wife and I had two good paying W2 jobs in the 1st case, and I had a business in the second case. Short story, I got my mortgages. I was a credit manager involved in credit and lending in the commercial area and understand the world of ratios, like DTI, how it's applied, how rules are bent.

Traditional lending has their own kind of criteria.  You might want to look into private lenders if they haven't ceased operations since the virus started.  Look for non institutional private lenders.  They will likely still continue to operate.

Call @Melvin List. He is in Florida. He will EITHER tell you "yeah you're good to go, these clowns are clowns," or he will tell you what is "really" going on so you can adjust aim and fire for effect. Either way, you win.

@Matt Nico This is kinda where it gets complicated. It's nice to have a relationship with a lender so they know your situation. The title being in your name and the payments being made in the name of the LLC are enough evidence to show the lender that you are not getting that income and paying those expenses, your business is. The mortgage will still be in your name, but it's still up to the lender how they want to consider those numbers financially. They have the ability to manually separate business debt from personal debt if they choose to.

There is the option of completely refinancing the note and putting it into the name of the LLC that way, but as it was mentioned in your initial post, and again throughout here, it's not the best option because there are many regulations you have to abide by. And the rates are usually higher.

Hello BP Community!

I am in the early stages of learning about Real Estate and the different strategies investor can follow to reach their goals. I have been very interested in the idea of house hacking because it is a great way to save money in rent, generate some cashflow, pay-down the home using tenant dollars and potentially home appreciation. 

For those investor whom have followed this strategy or have studied it, what would be your best advice in order to be successful? what would have have done differently? or done again?

Thank you BP Community for sharing your knowledge!

@Matt Nico Not if you specifically use a quitclaim deed. Its only purpose is to transfer ownership of the property, not the note. A quitclaim deed doesn’t show any intentions to transfer the note. It assumes, legally, that the persons on the note will continue to be responsible for mortgage payments.