All Forum Posts by: Ramon Purifoy

@Matt OConnor LendingOne seems to still be in business... lendingone.com

You could also try MoFin if you haven’t already mofinloans.com

@Henry Derbes
I've had a bit of a different experience with VA. My understanding is that you have to have the INTENT to stay in the home for at least one year. If you get reassigned or have to move after that year, there is no requirement to refinance. I have not heard of any other VA loan recipient being required to refi either.

One thing I've noticed people are not aware of is your additional entitlement. You a can own more than one home that are both on VA backed loans. There are a few nuances, but I've down that as well.

@Wesley Stewart

Thanks for the info. I think the biggest thing to address first is that you likely would not be able to use a VA loan on this deal. VA Loans are intended for owner occupants and only useable for 1-4 unit homes. Unless you are able to split the deal up into individual units, it wouldn't qualify and even then, it sounds like there would be difficulty in financing the remaining properties.

For future reference, you can probably estimate 2-3% of the purchase price for closing cost (separate from your down payment) on the buyer side.

There are VA rehab loans but they have limitations and stringent paperwork to utilize. You would likely want to make sure you identify a contractor that has experience with these types of loans. You can call around to different local lenders to see if there is one in the area with experience.

You could reach out to a few local property managers to get a general idea of what the area vacancy rate is. Always be weary of the sellers numbers. “Trust but verify”

Find out what kind of work is needed for 50k. If it's bad/unloveable condition in some of the units it may be difficult to get traditional financing on them until they are fixed up. Having to go hard money on the front in with significantly change your numbers as the money is expensive to borrow. If you were to go this route you can refinance to VA after the repairs are completed (assuming whichever target property qualifies).

Hey @Wesley Stewart,

Glad to see your potential deal. It may be helpful to write out the scenario in your post so ppl don’t have to guess (and less barriers for them to help). 

Add info such as why you think this is a good deal (amazing numbers, great location, schools, amenities, etc) and what concerns you as well, getting rent, tenant base, etc). 

Give us a little backstory so we understand the situation and your personal thoughts on it. 

Also, what is your strategy? (Flip, long term rental, AirBnB, wholesale, etc.)

@Kristen Nguyen They aren’t local but I’ve had a positive experience with LendingOne. I’ve been working with Justin Seiler.

There is a  monthly meetup at the Fayetteville IHOP on N Jeff Davis Drive. It will likely be the 2nd or 3rd Thursday of the month.  

Request to join the Facebook group for more info:

https://www.facebook.com/groups/141770776514773/?ref=share

@Ayne C.

For rentals, consider taking a look at Rental Hero https://www.rentalhero.io/Home.asp. I use a version of their software that they have for Real Estate Agents and I love it. They give a free trial so you could play around and see if it is of use to you. 

@Anna Curtis

You can begin to fill it out. Just don't hit submit.

@Coya Stewart

Lots of great advice here.

One challenging part can be handling all of the admin. Realtyzam.com has been a great tool for managing my Realtor finances. This is great for saving receipts and being prepared for tax time. (They have a free 30 day trial, but if you use 16115 for the referral both of us get a $10 credit.)

I use YNAB for my personal budget, but it allows you to create multiple budgets and I use one for real estate as well.

As you go through the process of working with clients, think about how you can create a repeatable system to streamline the process (Think Checklists). 

As you business grows, consider passing along some of the tedious administrative work to free yourself up to be more productive.

I'm relatively new as well, but these things have helped me along the journey.

If the traditional banks aren't working out, you could consider one of the hard money lenders that also does rental financing such as Finance of America Commercial or Lending One. These will likely be higher than a traditional bank (starting at 6.5% and up) but it is a backup if all else fails. They usually base their financing on the rental income and property value without consideration of your personal income.

https://www.foacommercial.com/

https://www.lendingone.com/rental-loans