All Forum Posts by: Rico Nasol

Agree with @Tarik Turner there are so many 25-30 year products out there. Rates likely won't be this low again so locking it in for the long-term is the smart move.

@Shawn Wainsely I can help you shop for refi rates and loans. 

@Eduardo Caballero you should try America First CU. They have been great for me. 

Agree with all. We use cash and the BRRRR method. Buy value add and close quickly with cash at usually 60-70% ARV. We'll typically put in $25-35k of rehab into it and when we refi 6-7 months later we usually pull all if not more cash out than we put into the deal and we roll it into the next. It works well for us and it has allowed us to take down bigger properties because we keeping building our cash position while still building our portfolio.

@Henry Bass with cash you can get away with 6 months of seasoning. best of luck. you have the right idea to scale quickly.

@Lear R. I can help you shop for multiple loans to find the best to compare. DM me if interested.

@Ify (Bobby) Anizoba you can as long as it appraises for the loan amount you are looking for. If you are trying to roll the rehab costs into the loan, you may want to look into an FHA 203k which will let you roll the purchase price and rehab into the loan. Will you be using cash for the rehab or would you want to roll it into the loan?

@Jack B. I think if your cashflow is strong enough it is considered income. As long as you have at least 2 years of taxes showing profitability and consistent income, that should work. Banks will look at it as your profession. So if you profit $50k a year for example from your portfolio, it'd be the same as having a $50k/year W2 in the eyes of the bank. The only downside I've seen with this in my own investing is that we depreciate assets and take advantage of tax deductions so we are not as profitable in the eyes of banks right now. This is ok for our investing right now since we have other income to make up qualification needs.

Hope that makes sense.

@Quintin Green HML is primarily for real estate. You may want to look into an SBA loan or commercial loan since you are essentially buying a business. That way they can actually look at the annual receipts/sales from the business and take that into account. There may be some options there for more financing.

@Wyatt Short you should look into the FHA 203k loan. This is exactly what you are referencing. They roll in the price and rehab into one loan. This link will give you most of the info you'll need. 

@Kendric Ng I started investing from the bay area and move out of california this year. I would check with your local credit union. Many of them have business banking servics and they do portfolio lending for real estate. You want to find a bank or credit union that can carry the loans for you so you don't have to worry about Fannie and Freddie. I'd also try to understand their lending requirements and rates. They vary between different credit unions. You may have to understand what you are willing to work with. For our portfolio, we pay slightly higher rates, but our lenders work quick and aren't as strict as some you'll find out there. We're still able to do 80% LTV post-COVID. It also helps to understand what their minimum debt ratio is for rental properties. We also prefer 30 year loans. Some banks only do 5-7 year terms with 30 year amortization with the balloon payment at the end.

At the end of the day, pick which bank best suits your goals. If you end up finding a bank that does everything you need, but the rates are a bit high (like ours) just write it into your offer analysis. There are always ways to make sure you account for the terms. The beauty of working with the same lenders is that you will be able to learn how they underwrite and you can optimize your business based on that.

Best of luck!