All Forum Posts by: Rafael Ortega

Rafael,

After the hard money loan I would suggest closing them under your LLC using a DSCR loan or portfolio program. These two programs allow for an LLC refinance from hard money with no due on sale clause issues. Rates on DSCR are lower and they offer ARM and I/O interest only options.

DSCR is going to want to make sure the loan amounts are over $100K in most cases. Feel free to email me if you have any specific questions. I enjoy helping and talking REI!

Hi Rafael,

Some hard money/ business purpose lenders have better pricing if you close in an LLC (me) so that's one factor to consider. As for the refinance aspect, if you're going from LLC to individual (or vice versa), at my shop you would just transfer title into (or out of) your LLC at the close of escrow, so that part is no biggie. Hope that helps!

If your looking to do 2-4 unit properties then the 5% Fannie Mae program is perfect for you. It's a conventional loan and we can use 75% of the rents to help you qualify. Sounds like the next step for you would to get preapproved that way when you see the right place you can make an offer before it's gone. I'd be happy to help you with that and also run you through closing costs here in the city of Chicago as well.

Hi Rafael and welcome to BP. When starting, save 10% of every paycheck for your first down payment. While doing that, start reading. I like The Millionaire Real Estate Investor by Gary Keller. Find some local meetups in your area and diligently go to them. I recommend finding a mentor in your area whom you can meet with.

@Rafael Ortega welcome to the forums. Biggest piece of advise is to take your time and really understand the ins and outs of who/where/how you'll be investing. Like Joseph mentioned the southern/middle part of the country is great because the price points are much easier and the laws are landlord friendly. If you have the right team in place it'll make for a very passive investment. 

Best of luck on the journey! Feel free to reach out if any questions arise 

Hello Rafael and welcome to BP and the world of real estate investing!

The main piece of advice I like to give new investors is this, don't get stuck in analysis paralysis.  This is where I see so many people get caught up and are never able to actually pull the trigger on an investment property.  Be ready financially and educate yourself thoroughly, then just do it.  I know I'm oversimplifying, but that's the basic formula.  I'm in Jax as well, let me know if I can help.  Good luck!