All Forum Posts by: Rick Taldykin

@Neil Garceau

There are lenders that will give you 75LTV cash out, without even requiring a DSCR. Not necessarily hard money either, as you can get a long term / 15-30 year fixed term for a fair/lower rate than hard money.

@Matt Arden When you do find a lender, make sure check whether they will allow for partial release of properties, in the event you want to sell one or several. Some lenders don't allow for partial release on blanket/tape loans, as it will typically be tied to one loan number. Just be sure that you're clear on that from the start so you don't run into any issues down the line, should you decide to leverage/sell portfolio.

Generally speaking, the more information you have, the better. 
If you haven't already been pre-qualified, you can always inquire with a lender/broker to see what rates you'd be up against and what your possibilities and limitations are. 

@Johnathon Kim yes, they are technically commercial loans, but that does not limit you to "traditional" commercial properties. Investor 1-4's are still considered commercial loans, although they're a residential property. You'll be OK with SFR's.

@Stephanie Reynolds Will you be physically managing/building the property or delegating? 

Depending on your budget, there are many variables and strategies that can be implemented--it just depends on the investor. 
While you may be OK with less populated areas, you must consider the lender and be sure to vet the market well enough to ensure stability. Lenders often turn away properties that are located in a "rural" area, so it's important to know the population and the liquidity of the market in the areas of consideration. 

That being said, there's opportunity everywhere, and depending on your budget, you can get away with some pretty sweet deals. If your budget is on the smaller end, consider branching out to the mid-west where you can buy houses for $25-30K which you could recoup after a few years. However, some lenders may not lend on homes of little value, so you must also consider the minimum loan amount a lender may require. 

There's potential everywhere, so keep your eyes out, research as much as possible, and weigh out all of the factors before pulling the trigger. 

Hope that helps!

Rick

@Johnathon Kim Have you considered other forms of finance? With a 750 FICO, you'd be sitting in the top tier programs of most asset-based / stated income lenders. 

You can get you the loan you want, WITHOUT the need to verify your tax returns, bank statements, or income. Provided the property is in a liquid and desirable market, all you'd need is to have is enough for a down payment, usually 25%. 

Your FICO is already there, so all you'd have to worry about is the down payment. 

Great property. 

@Francisco Lara

Some private money lenders do not require bank seasoning at all--rather they just want to source it to see that you'd have the funds to close, not caring about where they came from. There are programs that require no bank statements, no tax returns, and no verification of income or employment.  
Have you considered finding a partner with cash that would invest in you to get your head start? There is plenty of deals out there that can get you in at 20-25% down. If you were to have a financial backer that would help with your down payment, it would provide a good head start. 

@John Anderson 

There are lenders out there that don't even debt-service residential investment properties under a certain loan amount. With your cash reserves, you can use that as an exception to override any guidelines a private lender might have. 

Even with no experience, assuming your credit is good, you can get up to 75% LTV or 80% CLTV on most residential or mixed use properties. With only 25% required for a down payment, you can diversify your investments across multiple properties and get a head start on your portfolio.

The greater your schedule of real estate, the more a lender will be inclined to fund your investments. 

@Chris Conde Have you ever thought about blanketing this property with 1 or 2 of your other ones? Yes, most lenders will require a minimum of $50-75K, but if you blanket several properties, that minimum drops significantly. 

If you blanket, minimums go from $75K in LOAN AMOUNT to a $50K VALUE. That's literally cutting minimums in HALF. 
One property at 75LTV / minimum loan amount ($75K loan on $100K property) would be the same if you blanketed two properties at $50K (value) each.

Does that make sense?