All Forum Posts by: Miranda Holland

Comparing lenders could be very exhausting for an investor due to that fact lenders vary on almost everything from the type deals they fund to how much they will fund and rates and terms. I recommend you consider working with a private money broker in that case.  They already have a list of lenders and their criteria.  Brokers can get you a quote, or several quotes alot faster in most cases.  

I've learned that if your bank is not offering you a mortgage rate and terms that fits your needs, you should go to a mortgage broker.  Whenever you are in need of purchasing insurance, see an insurance broker. Same thing in the private/ hard money world

When you say 2nd vacation home, it sounds like it might not be an investment property.  If that's the case, you might have to go with a traditional lender.  But if it's a property that you don't live in at all, that opens the door for you to work with private lenders.   

Other People's Money. When you cash out refi, you should do it to increase your liquidity and working capital.  The more liquid you are, the more money lenders are willing to loan you. You shouldn't be using your own cash for anything more than a down payment and holding costs. But you can even find secondary loans that will cover those expenses for a 2nd lien position on the property.   That's how investors are scaling at a high rate. They're borrowing the money to do it. 

You can possibly do cash out refinances on Properties you have equity in so you can increase your liquidity. Depending on property values, you may qualify for 30yr term even with private lenders.  But it's hard to say without your numbers in front of me

While 100% financing is possible, most of the time, there is fine print. If someone was offering me 100% financing at 4%, the first question I would ask them is how. Who qualifies for these terms? How is it you're able to offer 100% financing? Are there points and broker fees added to the 4% rate? I would pick it apart. 

You'll find that most of the time lenders who legitimately offer 100% financing are actually brokers/investors who want to use their privilege of 100% financing they've earned with one of their lenders to partner with borrowers on deals they're financing. That way borrower don't have to come out of pocket for down payment cost in exchange for giving broker 10% or more of the deal as well as a broker fee for financing the deal.  That's just one scenario. Another fine print is that you might qualify for 100% financing after you've done 15 or so deals with certain lenders at 80% to 90%. Another way they offer 100% financing is they have a network of secondary lenders willing to take a 2nd Lien position to cover the closing costs 

Try private lending Facebook groups. They may know something 

Technically, no you don't need a pre-approval. You can always get a proof of funds letter to make your offer. However, conventional mortgages tend to take a long time.  You don't want to get into a situation where you get your offer accepted and you run out of time looking for financing from a traditional bank.  So yes, find a bank that will pre-approve you first 

However, with private money/hard money, things are sort of reversed. As long as the deal is good, it will likely get funded regardless of imperfect credit 

Seems like private and hard money loans might work for your situation.  Most of the time, approvals are mostly based on the strength of the deal. Different lenders have different lending criteria but if you get a good deal under contract, you should be able to get it funded.  

I recommend calling title companies.  Let them know you're raising private money for investing in real estate and ask if they would hold the private money in escrow. Once you find a title company who is investor friendly and willing, your friend can send the money directly to the title company.  I think the title company will then do a closing with you to transfer the money with your friend being the lender.  They might also do a draw schedule for rehab.

@Saurabh Kukreja

yeah you gotta remember, renters are checking out several properties when they're shopping for the right one. It'll be hard to compete in any USA market without a fridge and full stove at least. I'm surprised the property manager took this on without letting you know how hard it would be to rent without basic appliances.