All Forum Posts by: Marques J.

 It's a sfr. Leased with 1 year. House is zoned commercial residential but at this point it's just a sfr resi rental.

Hello,

I have a free and clear property in a high quality Ohio location. I have owned it since May 2016. It is tenanted and performing very well. Just found out my conventional refi is dead. My foreclosure seasoned off my credit but what I didn't know is it is still about 6 months shy of 7 years. So I have been looking for some alternatives that have manageable interest rates and terms.

Does anyone know any options that can handle a 6.5 year seasoned foreclosure and will do a cashout refi with "decent" rates on a NOO, owned since may 2016. I know I am not going to get a 4.5 percent but 9-12 is also not an option when I only have 6 months to wait for conventional. I would like to refi on appraisal of course but purchase costs and rehab could work.

Any leads or advice would be greatly appreciated. Currently I have talked with Lima One and Mofin loans.  I have a few others I could blanket but I do not have 5 properties.

I will entertain ARM, 30 year, I/O, commercial, residential. I plan on refi'ing so I can get some more MRR via rentals. Business purposes.

Hello,

Limaone is great. I have closed 2 loans through them recently. 10 percent of purchase price down. 100 percent rehab covered in draw system. Arv appraisal is required. 2.5 points with 9 to 12 percent interest. You need 12 or more deals done to get 9 percent so most likely 12. 11 month no PPP loan.   I highly recommend them.  

Well they start with Pre approval letter based on your liquid reserves and misc.

With that you can get an offer accepted and a Purchase Agreement.   Then you have the typical docs, rehab budget, entity info (they require entity closing), proof of funds for liquid reserve 6 months interest only payments and rehab amount I believe.

They require an After repair value appraisal that must meet certain LTV's. Also your interest rate is adjusted based on LTV and experience.

They also required a rehab budget inspection. I had one inspector require a electric panel replacement. Glad he did as I just threw it in the rehab budget. 

I would say the process went great and I will use them again. They helped rush an appraisal out in Oregon where they are 4 to 6 weeks out. I had sellers with cash backup offers (so they said). I didn't want to lose due to delayed appraisal. It all worked out.  

@JC Jensenundefined

Here are some of my recommendations.

Cut your debt load to as much as possible. Living with low debt and liabilities is the first step at freedom. I hate debt that is not making me money. Money = freedom to me. I would not overlook diving into your finances and trim the fat. Do that along with building some passive income via some rental investments. You will have more to invest with low debt therefore speeding up your plans.  I would make low monthly output(and I do) my primary goal while still working. Then the passive income you build could be the safety net to make the plunge of leaving your day job.    I have done exactly this and as I need my job less and less I am starting to see the exit at the rat race of life.

I happen to have high paying skills in computers. I am doing W2, 1099 and investments. I happen to enjoy my job but I do not enjoy having to have a day job. So leverage your job and income now, cut bills and debt to minimum, build some passive income as a safety net and the financial freedom you desire is right around the corner.

One other thing. If you have a end game and a plan and if you realize your job can be used as a tool to get to where you want. You might not despise it as much.

From my perspective, a landlord banning marijuana is more legally dangerous than banning tobacco. Marijuana is a legal medicine in Oregon and has been for many many years. Tobacco has no medicinal benefits. If landlords are required to allow "Service" animals for any reason with no pet deposit. Banning the lawful use of a patients medicine might just become a lawsuit. I don't want to be the precedence case. It's tricky but I am not going to put my neck/wallet on the line when someone can just close their window or door. I know farms in my are pump a fertilizer mixture in spring that fills the whole valley with the death smell of animal feces just to make better pumpkins or corn. 

Also banning weed and not tobacco could be considered discrimination. Not a protected class but clearly the policies are not being applied equally.   Oregon is tricky.   Off Duty smokers are a protected class in regards to employment so some protection has been given in the past. Of course, so are people who had wage garnishment. Interesting.

I can recommend LimaOne Capital. 10% down payment on purchase price with rehab covered 100% in a draw system, 2.5-3.5 points depending on experience. 9-12 percent depending on experience and LTV.

Great way to leverage your own capital. I have successfully closed 2 loans through them.   Lending Home would be a 2nd option to look at. I have not actually closed a loan from them though.   Good luck..

5 plex turns into commercial property. Have you checked on actual commercial lending and insurance costs in your area? Some issues you might face are 25 year amortization and balloon payments. 

Good afternoon to all.

I am working on a multi unit distressed condo project in Oregon.  I have multiple exit strategies identified but preferably, I would like to keep them in the hands of veterans/low income as rentals or purchases. The units need work but that is reflected in the deeply discounted price. 

Oregon is in a housing crisis and the low income, bad credit and vets are being hit the hardest. I created a non profit to run them through if I needed to. I have not got as far as a 501c3 yet.

Are there any parties that might be interested in a project like this? I am open to how these are purchased and ran but my goal is to get them rented to vets and low income families and keep the HUD renters that are already there (3). Please private message me if interested.

This is a win win. Even at Hud-vash rates these cashflow well. ARV gains are outstanding long term. Not to mention these units would be rented in 1 hour if I opened them up for Applications.

Anyone? Time is of the essence.

Thanks

Welcome to BP. You made a good choice in my opinion.