All Forum Posts by: Javier Mercado

Short answer is yes. I just sent you a connect request. Lets chat more about your plan.

Slaven, we have some lenders in our network that will provide a HELOC on investment properties.

The fastest I've closed a HELOC recently was 5 days. I can help give some options if you're up to it.

Hey Aldo,

The Credit score looks like you're in the right range to get pre-approved for FHA/Conventional depending on downpayment

Auto loans long term can help diversify your credit accounts and the longer you have that loan the better it would be for your credit. But short term an auto loan will only take away from your income/ability to afford a mortgage.

Most lenders will allow for a credit score as low as 580 for FHA and 640 for conventional loans. If your goal is to purchase a property, it would be best to speak to a mortgage professional like myself to dial in on your situation to figure out your next steps.

I think it just depends on the deal & cap rate. It’s tough to make multifamily cashflow with rates as they are if you’re financing. If you’re getting a 6 cap when rates are 8%+ those numbers may not make sense. I would argue that it also depends on your goals as an investor.

I love multifamily because you can scale much quicker with buying multiple doors in one transaction. If you have the capital and you’re looking to build the portfolio make, sure you have enough breathing room to account for any short term corrections & you’ll be ok. Residential commercial (5+) has peaked IMO but with the housing demand so high and prices stabilizing, more people are being pushed towards renting which should keep your vacancy rates low. 

Underwrite extra conservatively upfront and you’ll save the headache down the road.

Best of luck!

Hey Shai,

Congrats on completing college! When did you graduate? There are conventional/FHA guidelines that allow for less than 2 years of work experience provided you were in school. These loans will offer the cheapest interest rates, especially if you're going to occupy one yourself.

My advice, if you have the downpayment + income to support the loan, speak to a loan officer to review your profile and see if it makes sense before exploring non-conventional methods (more expensive rates & bigger downpayment/reserve requirements). You can also get a cosigner to help bridge the income gap if you need it.

DSCR's are also tricky if you dont own a property yourself (risk of occupancy fraud). Lenders impose restrictions to first time investors/homebuyers that have not previously had a housing payment.

Best of luck!

What do you think about the new reserve law for HOAs? Are low rises exempt from the requirement? If so then it could be a solid brrr strategy. I'm finding the HOA fees getting bumped especially in the older buildings to keep up with the new requirement.

It’ll obviously take a good team to help strategize exits due to the challenging financing on the backend for the end user. 

Demand is still insane with net migration upwards of 250k/yr for the entire state of Florida, Miami is a big chunk of that.

Good luck on the pitch

Hey Anthony, HELOCs have changed. I can get you some options on tapping into the equity of those properties. I just sent you a DM

There aren't any lenders giving out money for down payment. The only way to bridge the equity gap is to come up with the cash yourself or use OPM (other people's money). Your own personal circle of influence would be a good start if you have a deal. 

But there's a crucial piece needed to be successful... know the numbers and have multiple exits... Using other people's money is a big responsibility. Especially with friends and family, a bad deal can cause tension on your relationship. It's important to approach this as a business and explain your plan in great detail anticipating any concerns with a contingency plan already in place. Like any investment there are risks and your investors will need to understand that. If you have a good deal and provide a good return in a predetermined time frame, I'm sure it wont be the last deal they help with.

Eventually you'll do it enough where you will have the capital and wont need OPM. By then if you're successful enough, they'll want to proactively invest in your deals because you make them money! It isn't for the faint of heart but if you keep a narrow focus on your buy box and know your numbers, it'll give you the confidence you need to take the next step.

There are hard money lenders that are more lenient on the source of funds. They mostly care about the deal. If there's enough skin in the game and it's a solid deal, hard money lenders will back you. So in short. . . you can either raise the money, or save the money yourself. 

Hey Yusimay! Congrats on the big steps further into the business. 2023 was a pivotal year to say the least in RE. Miami has shown amazing resiliency and stays hot! I'm also starting to become more active in the BP community. If you would like an extra local resource to help compliment your business, I'm happy to connect.

I wish you the best of luck!

You will likely end up being a guarantor on any loan you take, so your credit could be impacted. If it's ownership you're concerned with, you can place properties you buy with conventional financing into an LLC after closing to limit your exposure (consult with your legal professional).

Otherwise, everyone above pretty has it covered. Hard Money or non-Conventional financing will allow you to close in an LLC

Best of luck!