All Forum Posts by: Patrick Roberts

This is a free lunch and learn in Baton Rouge, LA, that will cover the ins and outs of getting a mortgage when you're not paid on a W2. This is especially relevant to any investors who want to understand why it's difficult to qualify for Conventional and Government loans for the self employed (Schedule C, E, K1, etc) and what to do about it. We'll also cover alternative financing options, such as Bank Statement loans, DSCR loans, etc. The event will last approximately one to one and half hours and will include open networking, an educational presentation, and time for Q&A. The attendance is expected to be 5-20 people and will consist of realtors, RE attorneys, tax professionals, investors, and lenders. Lunch will be provided.

Please feel free to reach out for more info. Space is limited so please RSVP.

I've been looking at MTRs myself in the BR area. There is some demand between insurance companies placing insureds after incidents with their houses, as well as around the hospitals in the Essen/Bluebonnet area. I'm also exploring feasibility for this with the LSU system. We have an LTR in the area and have been coldcalled a few times recently by insurance companies looking to place insureds for 3-6 months. They were willing to accept rates that were 10-15% higher than LTR rates was what we found. 

STRs, on the other hand, are extremely seasonal. Autumn (football season) and Feb-April (Mardi gras and St Pats Day) do well. Summer and end of the year are rough. 

I'm originally from BR and still invest there. I'm there every month and will be in town next week. Let me know if you want help with the pre-approval or need any other insight on the market. 

Yes, you should be able to do this, so long as the DTI for the Conventional loan works once the new minimum pmt on the Heloc is factored into your debts. DSCR loan would be the backup plan - many of these lenders will allow heloc funds as a source of downpayment.

One tidbit for your specs for your new loan - the new rental income on the property you're purchasing will be counted at 75%, not at face value. Make sure this is factored into your calculations for whether or not DTI works. I recommend talking with your lender PRIOR to making the offer if you're relying heavily on this financing plan.

It's a combination of three things - rates, prices, and rents. Most of the deals that I'm underwriting for clients or for myself struggle to qualify for DSCR loans or pencil out because there's a misalignment between what a property can command in rent and what the monthly debt service will be. A drop in rates will help somewhat, but I think the bigger issue is that rents and prices are out of balance.

If you already have a first and second lien, a heloc is probably not going to happen. If you have a loan that's not current and in good standing at present, any financing is probably off the table until you cure. 

Given that you'll be moving states and living in it as your primary for a couple years, I would finance as much as possible using a purchase money first mortgage. This will likely give you best terms available, especially over buying with a heloc. From a negotiating standpoint, you could use the heloc to make a "cash offer" with no financing contingency and still get a mortgage during the process as long as your closing timeline provides the time to do this. There's also delayed financing if you buy the property in cash without any financing/liens involved in the purchase. 

Yep. One of the questions on the URLA is "Are you a co-signor or guarantor on any debt that is not disclosed on this application?" If you've PG'd a DSCR loan, you have to disclose it, and it will be factored into DTI by just about every Conventional/govt lender out there. That's literally what the PG is for - if the entity cant service it's debt, you've guaranteed that you will do so personally.

If this is an investment property (it sounds like it is), don't be surprised if any line of credit from a nonbank lender has a minimum draw amount at closing. Local banks tend to be the most competitive with these products because they have depositor cash sitting idle to fund the draws on demand. I would definitely price out a cashout refi option for comparison if I were you. If you're going to make regularly use of the money, a cashout FRM could make more sense. 

See if you can get in touch with Mike Savage. I believe he's the local STR expert.

At least once per week I see this in the FB groups and it immediately gets 40-50 comments with people's emails and asking for DMs. Then you click on the OP's profile and the account was created 4 minutes ago and there's one pic of some generic middle aged person. I'm just in awe at this kind of stuff.

I investigated a lot of fraud when I was a cop and would be dumbfounded by what people fall for. Like yeah, the IRS really wants Walmart and Target gift cards over the phone in the next five minutes to cover your "unpaid" taxes. These kinds of scams remind of that - it's unbelievable.