All Forum Posts by: Nathan Caffero

I'm currently at the end of a BRRRR and I am stuck on the refinance aspect. My credit took a pretty bad hit in my credit score is currently at a 550. I have a couple possible cosigners lined up, but haven't found the right lender who will lend to me. The home is in Wisconsin, and is a three unit producing 1900 a month in rental income. I'm under a hard money loan for 47,000. I've had this house for almost a year and really don't want to sell it.

@Nathan Caffero Based on what exactly hit your credit score, you may not necessarily have the time to address the matter and get a score revision with a looming HML to deal with. What was the term and rate of your HML? Would obviously require current deal specifics to know what is feasible from a refinancing standpoint.

I’m paying 15 percent interest only. Plus 2,500 every 3 months. I’m in the loan for 47,500

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Quote from @David Kelly:

Hi Nathan,

Do you have available cash to fix your credit by paying down Liabilities? If so, you may be able to fix it quick and do a rapid rescore. That is one thing I have done for others. Its a complimentary program we can use and usually is pretty accurate. Once the debt is paid all I would need from you is a statement or transaction history to show the new balance. I would then have my credit agency update the report with the new scores.

Adding a borrower may not help. Normally the lower of the two scores are used for eligibility. There is a new guideline that may be coming out (or already is out) that will allow the average of two scores for the qualifying score. So a 550 and a 780 would be a 665.

I have some available cash. I paid off a bunch of things and even got something from collections removed, but my score has stayed the same

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I’m looking for a credit counselor, possibly one that can recommend good trade lines. Any and all help is greatly appreciated.

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San Diego, California

Quote from @Kevin Luttrell:

@Nathan Caffero call up a credit repair company. A decent one will almost certainly be able to raise you up into the 600s within a few months.

Not much chance of qualifying with any lender with a 550 score.

Do you have one in mind?

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Quote from @Gregory Chadwell:

8th and Lincoln seems about the right price.

It’s a few blocks away from eighth Avenue. It needed a lot of love, and I got in at the perfect time (pre-covid). It was on the market on and off for 2 years when I bought it. I talked them down from 50

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Quote from @Doolan Wesley:

Congrats on your first rehab project. What was your ARV? Did you sell?

Right now it’s worth around 180,000. Unfortunately I’m still under a hard money loan that I’m trying to refinance out of. There’s a couple things holding me back from the refi. I really would like to hold onto it because it’s cash flowing well.

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Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $36,000
Cash invested: $14,000

3,000 square foot triplex (studio, 1 bed, 5 bed)
1 new kitchen. Removed carpet and refinished hardwood floors. Replaced rotted outside wall.
New drywall, and plumbing. Fresh coat of paint.

What made you interested in investing in this type of deal?

What made me interested in this type of deal is the passage residual income and appreciation.

How did you find this deal and how did you negotiate it?

Found it on Zillow. It had been on the market for close to two years. They had wanted to 50 for it. I made him an offer at 25. We ended up settling on 36,000.

How did you finance this deal?

Hard money lender

How did you add value to the deal?

Fixed a couple things. Nothing too major was wrong with it.

What was the outcome?

Tried to refinance out of the loan via conventional mortgage, but income isn’t what they are looking for.

Lessons learned? Challenges?

Hire property manager. Be more strict when hiring people. Don’t try to find a cheap contractor, they are cheap for a reason.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Milwaukee hard money has been amazing and patient with me as a first time investor.

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The property is cash flowing 2,000 a month and will be going up at least 400 dollars in the next couple months. I really don’t want to sell. I don’t know what else to do at this point.

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Originally posted by @Mason Hickman:

@Nathan Caffero What is it you're asking for?

I was originally going to refinance out of a hard money loan, but had to evict somebody in the process I missed credit card payments and damaged my credit so I am unable to refinance. I plan on selling the house to my girlfriend which is why we need the money for a down payment in which I could pay back after closing

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All Forum Posts by: Nathan Caffero

Nathan Caffero has started 6 posts and replied 28 times.

Post: Need help with refinance

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Post: S.O.S! IN NEED OF CREDIT COUNSELING! S.O.S

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Post: 802 Lincoln street triplex

Post: 802 Lincoln street triplex

Post: 802 Lincoln street triplex

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Post: Looking for a short term loan