All Forum Posts by: George Despotopoulos

@James Gilpin. Start with rich family members or friends that understand the real estate market. If this is your first property, it probably makes sense to buy it in all cash and then refinance or sell the property when the work is completed and pay everyone back. 

If you want to do it solo, there are Hard Money Lenders out there that will be able to give you a loan for 80% of the purchase price (approx $35k) and then a $30-40k in rehab to fix the property. The rehab money will be disbursed to you in different phases as the work is completed for the property. Keep in mind they usually charge 10%+ and 2-3 points upfront. Loan is usually for 6 - 12 months. 

Once the work is completed, you can think about refinancing the property and taking some of your costs out through a rental loan. There are private/specialty lenders out there that will give you a 30 year loan for the property. Keep in mind, rates will be 6.5%< but the lender will look at the rental income of the property rather than your personal income (which is great for you based on the potential rental numbers above). 

Let me know if you have any other questions. 

@James Gilpin. This looks like a great deal based on the fact that your potential rental income is significant based on the value of the property. I would expect a property that is at least double in value to get that kind of rental income. Is the rental market strong in the area? high vacancy? 

@Troy Cole. Congrats on the deal so far. I would say if you feel strongly about the housing market in the area and want to build a portfolio of these loans you should try and get a rental loan. There are lenders out there that will give you ~60-70% LTV on the value of the property as long as your rental income is able to servicer the monthly payment on the loan. In your case, you can get a loan on your current property and get some cash so you can continue buying other properties.

Good Luck with the property. Did you have a number of options to finance your property? Is it a bank or a specialty lender who gave you the loan? 

@Devan Mcclish Congrats on the rental properties. In terms of financing, would you look to get a loan for each individual property from a specialty/private lender that looks at the rental income of each property? Would like to hear your view. Thanks 

@Wes Shaw. Realty Trac and Core Logic are probably your best bet. They both collect this data and can share it for a fee depending on what you need. I suggest you explore their sites and I am sure you will find whatever you need.

Happy to help if you have any other questions.

@John Clark. Congrats and best of luck in the future. 

@George P. Congrats on your Rental Properties. We think this is a great market and a big opportunity to lend on these rental properties. We are excited and wish you the best of luck going forward. 

You should look at some of the private lenders out there who will give you a single loan for each property you own. The rate is usually 6.5% - 7.5% but can usually close within 3 weeks.

Happy to help with any other questions.

@Bony Mathew

I would always recommend a refinance. You will be able to get a lot more cash out for the subject property. This will allow you to grow your portfolio much faster with a "healthy" amount of debt. If you are looking for a single loan for each property you own, there are limited avenues out there, but we are diligently trying to change the landscape.

Some important things to ask yourself about each property before pre-qualifying for an Investment Property Loan are: 

a) Is the DSCR greater than 1.25x for each property?

Private Lenders offering this loan review the actual property's rental income and not your personal income to qualify you for the loan 

b) How much are you looking to get a loan for? 60% LTV? 70% LTV?

c) How quickly do you need to close? 

These lenders often close within 3 weeks but usually charge a rate that is >6.5%. 

Feel free to reply here or reach out to me directly if you have any additional questions.

@Dustin Beam. I think you let her out but have her give you at least a one month notice so you can start marketing the unit as soon as possible. A lot of times the actual tenant may have other friends looking for a similar place to rent...which can ultimately be a good outcome for you, 

Remember a month-to-month is better than no monthly income for the property. Take what you can get.