All Forum Posts by: Michael Glist

The thing you will want to be careful with is how the unsecured line of credit will affect your credit if you are using a HML that has a score minimum. Most lenders will want to see a bank statement to show funds available for closing which means you will need those funds in the account shortly after applying but also making sure that you do not take out to much that it lowers your score below the lenders minimum score requirement. It is a great way to get started just make sure you do it right or you may end up with the cash needed to do the deal but not the credit score needed.

Welcome Brandon. Happy to have you here. 

Rodrigo, 

Congrats on making the transition even through such hard times. Sounds like you have been quite busy and are so far crushing it. 

I think your options at this point would be either to find a Mortgage lender that works with NON QM products which would potentially allow you to accomplish what you are looking to do. 

Your second option would be to find an alternative lender that offers investor loans. This would give you the ability to refinance those deals without having to look at income or time on job. The rates are slightly higher than typical bank rate but with limited docs needed and the ability to do this with little oversight on your personal profile and taking a look at it form an asset standpoint, this would be the quicker, easier route. 

Best of luck!

@Brandon Glass So when going the conventional route is it just credit holding you back? I ask because if your going conventional on an investment loan they require 20%-25% down so if you're looking to go conventional and house hack fha may be an option as I know some lenders go down to 580.

When talking to the lenders are they telling you exactly what's holding your credit back?

Have they mentioned a rapid rescore?

Hard money can range from 0% down to 25% down it really depends on the deal and making sure you have reserves liquid.

Private Money is a great option.

You can also look into partnerships with someone who either has capital or is loan eligible. This does mean you split profit but also means you learn from someone experienced while making money son you can go out on you own soon rather than waiting until you personally have the capital available.

In my opinion I think leveraging is the better way to go. I would rather buy 5 $100,000 houses with 20% down on each than 1 house for $100,000 cash. 

Yes cash flow will be smaller on each deal due to having a mortgage but if you are looking long term than the appreciation on 5 $100,000 houses is worth way more than appreciation on just one. 

But again that is just my opinion and outlook on why I think it is better to leverage instead of pay cash.

My question is what are you looking to accomplish?

Are you looking to flip properties?

Are you looking to BRRRR?

Are you looking to buy turn key rentals?

Are you looking for conventional financing vs hard/private money?

Knowing this will be helpful in pointing you in the right direction. 

So hard money would be an option. 

I think the only issue I potentially see is on the selling end. Some loans require there to be 180 day period for the title to season before they will lend on it. Some will do it 90-180 days but may require a 2nd appraisal. That would be the only thing that I would see as a potential issue. 

Are you looking for a conventional mortgage (assuming you qualify for one) or are you looking for an alternative lender that can help you if you cannot qualify for a traditional conventional mortgage? 

If you are looking for a Line of Credit tied to the LLC that may be hard. The reason is that most lenders/banks would be looking to review your LLC revenue over the past 3 months (typically) in order to determine how much of a Line of Credit you would possibly be eligible for. So since it it new and you do not have a trachrecord of revenue if any at all that would be a problem. Now getting a Line of Credit either unsecured or secured, that is tied to you personally that would be likley your only option at this time in my opinion.

@Bruno Nunes That's shouldn't be a problem getting hard money or a non QM loan. And if all else fails and you're not fond of the terms you can always refinance once things go back to norma in the lending world.