All Forum Posts by: Rick Taldykin

@Mike Harris Typically "hard money" refers to something short term and high interest. You'd want to figure out what strategy best suits you. What type of investment are you getting into? Perhaps I can help answer any questions. 

@Jimmie Lloyd Stated income looks like your best bet. Something right before hard money. 

I like what @Dan Weber said -- that would be a great idea. Additionally, if you have it in an entity, make sure that the person with the better credit score retains majority ownership, as he is who will be guarantor. 

Having strong reserves is a huge compensating factor as well.

@Brenda Whittaker  Some lenders, even stated income ones, will not lend to you if you occupy the home.  Given that you have a F&C rental, you may be able to move house and refi afterwards.

What rate are you currently at? I may be able to help. Send DM if still interested

@Ryan Bonheyo Stated income would probably be your best bet. There are lenders that won't require any kind of bank statements at all. Naturally, rates will very based on docs and risk assumption, so just make sure that you understand the terms of the programs.

PM me if you have any questions.

@Paul Alexander, are your rental properties separate properties? If you have a multi-fam of 5 or more units, you can occupy them as an owner. I lend on scenarios like that frequently. Most people don't know that there are ways to O/O your investment property, just as long as it meets the minimum unit requirements -- in our case, 5+ units. 

Hope this helps! 

Hey @Colton Joseph,

Stated income is alive and well, especially for investor borrowers. Typically, 25% is required for down payment, 20% with the option of a 5% seller-carry. 

I see lots of scenarios out of Austin and Dallas, so you should be generating decent cash flow, provided you do all your due diligence and calculate properly. Sounds like you're on the right path for a healthy future portfolio!

Happy to share some more info if needed. 

@Nicholas LaGatta There are ways to get financing without personal income docs. Investment properties are typically lended on based on three factors: property value, borrower's FiCo, and debt service. Usually, if 2 of the 3 are really strong, the third can be overlooked. 

If you can come up with the 20% down payment, and prove that the property cash flows, you should be clear to invest! Just make sure to properly calculate all costs and expenses to ensure that the property is in fact profitable. 

@Ryan Wattenschaidt There are stated income products out there that offer more of a traditional term of financing, as in a 30 Year Fixed option. They come at a higher rate, but that can always be bought down. It all comes down to investment strategy and stability of the property. If a diamond falls into your lap and guarantees a healthy cash flow and you need it fast, sometimes stated is the way to go. 
You'd still need to come up with at least 20% for your down payments, but it seems like you've got that covered with investors.

I see scenarios like this all the time where the investor stumbles upon a MUST HAVE property and doesn't have enough time to pull the resources together. There are many variables to consider when going with stated income, but if you do your due diligence on the subject properties, you can come out on top!

That's not necessarily hard money, @Sam Shueh. It's more like "soft" money.  

However, lots of "stated income" lenders portray themselves as that, but when the time comes to collect docs, they request bank statements with two years seasoning. That's not true stated income. It's important to look out for bait and switch tactics in the beginning, so they don't hit you with it at the end. 

I see scenarios like this all the time from investors who looked for a stated income product, only to be hit with request for bank statements at some point. While it's understandable that these programs are niche and not for everybody, it's important to know that there is a definite need for them. 

@Victoria VanHouten

Really depends on your investment strategy. As the others have said, F&F’s are for the quicker pay day, whereas B&H is long term — think ‘planting seeds.’

With the B&H strategy, once you get it cash flowing, you’ll have a steady stream of income on a hopefully appreciating asset.

If you can part with a chunk of cash and let it work for you, then the long term route would be better for you.

I personally invest in buy and holds. I save up enough to where I’m comfortable parting with and plant that seed.

Also, sometimes F&F's take longer to rehab, longer to sell, thus delaying and likely affecting your projected ROI.

This kind of volatility can be overwhelming if not prepared for it.

Also, managing multiple F&F’s can be challenging, and sometimes hard to get away from if you’re anything like me and are tempted with a good deal.

I deal with investor borrowers on a daily basis and see an equal amount of B&H’s to F&F’s scenarios.

There’s no wrong way, it’s just how much you’re willing to take on.