All Forum Posts by: Herndon Davis

I just sent you a PM

 Just sent you a PM

Just sent you a PM

 Diana, I just sent you a PM

I just sent you a PM.  

I just sent you a PM

I understand, but the same rules would apply if you were doing Hard Money. It's an asset based decision. So no day job or tax returns requited. You just have to show you have the funds to close, liquidity after it closes during the remodel and an appraisal showing an ARV that makes the project work.

You can then refinance through a Non-QM product as well all without showing a job, revealing taxes, or pay stubs.  However if you decide to refinance using a Conventional Mortgage (Fannie Mae/Freddie Mac) then you will need to show a job, taxes, pay stubs etc.

This is GREAT!! Congratulations!  I would love to connect with you as well.  I"m based in Houston.  I will PM you!

Not to worry, that's specifically why Non-QM (Non-Qualified Mortgage) loans are created for. The primary decision approval is based upon the asset's ability to generate income or to appraise at an ARV that is profitable if flipping. You don't need to have a job, don't need to show personal income, don't submit personal taxes and don't have your personal debt ratio calculated at all!! You can buy in a company's or a Trust's name and you can consolidate any future mortgages from future rental property into ONE portfolio Loan.

 You simply need to have a strong credit score in the mid-600s, a 20% down payment and be prepared to pay an additional 2pts or slightly more in Lender Costs PLUS closing and realtor costs.  Yes, these loans are more expensive BUT with your high credit score you can get pretty close to low prime interest rate for an investment property.  Still slightly more than what you could get from Conventional but still relatively low based upon your credit score. 

I will PM you if you want more detail.

@Austin Works

Pulling equity out is a really good viable option BUT only if you can do it in the following manner:

1-Buy deeply discounted property and do the BRRR strategy. Deeply discounted is key, so put on your wholesale hat looking for distressed properties.

2-Also the trick is to find a property that has a large ARV relative to what you bought it in spite of any substantial rehab costs. This is very important for last point.

3-Pull out ALL the Equity from the property.  Max it out.  Accept that you are reducing your cash flow to almost break-even point. Be okay with it to prepare for the last point.

**4-Split the equity you've taken out 2 or 3 ways and use it as a down payment across 2 or 3 cheaper properties.***
This KEY.  Yes, you are buying cheaper properties but you still have multiple cash flow from 2 or 3 properties. 
All properties should have either potential for increase of future cash flow or appreciation should you want to sell.
There's no additional borrowing or out-of-pocket costs for your next 2 or 3 purchases because you're using the equity from your highly valued ARV property from step #1.

Over time you could even combine the 2-3 properties and pay with ONE mortgage note with a Non-QM portfolio loan if you like or keep them all separate.  Either way your portfolio just increased by 2 or 3 overnight.