All Forum Posts by: Rico Nasol

@Thornton Drury are you trying to do 100% financing with rehab included? That would be a tough loan as any lender would want you to have some skin in the game. What amount do you have to put down? Do you have working capital for rehab? As long as the debt ratio is in the 1-1.25 range, you should be able to easily fund this with a down payment. DM me if you'd like to talk it through. Best of luck.

@Naresh Maragh are you still looking for investors? where is the property located? @Daniel H.

@Abraham Kaplan never heard of them. what is it that you are looking for?

@Dylan Boyd if you know you are going to invest the funds for sure and since rates are so low right now, I would do the cash out refi if I were in your situation. Having a HELOC is helpful, but after 5-10 years (depending on the terms) it turns into a "second mortgage" and at a higher rate typically. If you plan to invest with your cashout refi, if you make more than 3% on your investments, it's the right move. My partner and I look for at least a 12% ROI which isn't insane. Some folks look for 8-10%. It all depends on your goals and risk tolerance. Just my 2 cents.

@Suzanne Lewis I might be able to help you if you're still looking. You'll definitely have to look in the commercial loan space to get this done.

@Khizer Husain I can definitely help you out with that. DM if you're still looking for funding.

@Bryan Doan it might depend on what your current rate is on your primary loan and how you plan on using your HELOC. If it were me, I'd want to be able to stay liquid and a HELOC helps me do that. It is how my partner and I started. We used a HELOC to buy properties in cash, rehab them and then we'd refinance them. When we did that, we'd pay back everything we took out of the HELOC and if we bought right, we'd add to our cash stores. The big question for you is... if you keep the HELOC, will you use it for investing? If the answer is yes and you're ROI is greater than 2-3%, you'll be making more in cashflow than in lowering your interest rate. That HELOC can help you grow your business. If you don't have that, you would then have to rely on saving cash each time you want to buy an investment property. Just my 2 cents. Ultimately it is up to you and how you plan to use that money.

@Kenneth Burdick I'd start with the bank that is carrying your note today. They may have some good rates and could get it done quickly since they already know your loan and payment history.

The other thing you can do is look at the rates at local credit unions. I've found some really low rates there. This is how my partner and I started. We use a HELOC to fund cash deals, rehab and then we refinance them at a profit. We then payback the HELOC and build our cash stores for the next deal. It's a great strategy. Best of luck.

@Chris Potter congrats on building up your rental portfolio. Sounds like you've been finding great deals.

Just a point of clarification. You can have individual properties with individual loans on them with a portfolio lender. What a portfolio lender is is a bank or credit union that carries the loan themselves. That means it isn't backed by Fannie or Freddie so they are not limited to any specific number of properties. Because they are not backed by Fannie or Freddie, these lenders can be a bit more strict on their qualifications since they are assuming some risk. They also typically have higher rates. Right now, my partner and I have stellar credit and typically hit a 1.2 minimum debt coverage ratio. We can get portfolio loans with our lenders at 20% down, but our rates are between 5.25-6.5% right now. I know it's high, but we analyze our properties with these rates so we work it into our deals up front. 30-25 year amortizations and terms are pretty easy to find as well, but I think the sticking point for you might be the rates. 

Adding your wife might be a good option, but at some point you'll grow past 20+ properties. Looks like you're finding deals and that is a good problem to have.

DM or email me if you want to chat more about it. Best of luck.

@Account Closed you should have no trouble finding financing for this. Why not just go straight into a conventional loan? You'll have to pay title fees when you pay cash and you'll have to do it again when you refinance. Is it that your family member needs the money ASAP? If you don't need an inspection because you trust your family member, you may be able to find a local bank or credit union that can give you an amazing rate and close quickly. With you putting $90k down the information you gave here, you should have no problem getting this loan done.