All Forum Posts by: Naveen Kumar

@Russell Brazil is your man.

You can use the Delayed Financing exception to get a loan of 70% ARV, based on appraised value, upto the purchase price and closing costs.

That is the FM guideline - a loan at 70% of the purchase price is a lender overlay. Call around to find a lender that will get you the results you want.

Check with Penfed Credit Union. They do HELOC on investment properties in second position.

I would pass as a first time investor - you might find surprises in rehab and get too close to the ARV.

Too many unknowns, imho.

@Sean Gallagher - call up PenFed Credit Union. They lend upto 80% LTV for non-owner occupied homes.

@Jiro O. If you are able to buy cash, look at properties that are auctioned at the courthouse steps. You might be able to find something there.

@Christopher Winkler - the refi upto the purchase price is in case of a purchase less than 6-months. If you have held the property for more than 6-months, you can do a cash out refi based on the appraised value.

Here is the strategy that works best, if you are eligible for conventional FM loans, and can buy cash:

- Buy and close as a cash purchase - lets you get to Rehab right away;

- Get Delayed Financing (pull out 70% of appraised value, upto the purchase price) and potentially get all your money out;

- Rehab the property and Rent it out

- Refinance in 6-months 

- and Repeat...

You can register your LLC in any state, but in order to do business in your home state, you will have to register as a foreign entity with the division of corporation in IL. And a litigation in IL will use IL laws.

To me, all this does is add to your bill every year and give you no real protection.

The FannieMae guidelines currently require you to hold the property for 6-months before you can do a cash-out refi into a conventional mortgage based on the ARV.

Now, if you want to pay more, you can look at portfolio lenders that lend in SC, and you will be able to refi sooner.