All Forum Posts by: Ryan Muska

Quote from @Joseph Fenner:

Do hard money lenders offer DSCR loans?

 Yes, but they will have very high rates. Better to just go with a traditional lender.

Go to investor meetups.

Read the forums

Reach out to people who are also investors

Talk about it everyday

Ask realtors you know/work with who they know that owns properties

If you have cash in the bank or other types of assets, there are typically other loans that you can get. Not every loan out their requires a two-year work history

Welcome back to the REI Community!

Welcome to the REI community! I look forward to hearing all about your success in the field!

Welcome to the BP Forum and the REI Community! Very excited to read about your growth and progress in the coming future!

Welcome to the BP forum and the REI Community! I look forward to reading about your success and growth in the future!

Depending on the occupancy of the property you may be able to refinance up to 75%-85% LTV. That being said, if you seller financed the property and have less than 15-25% equity you may not be able to cash-out refi. If you have more than 25% equity then you should be fine. The bank/lender will pay off the seller finance loan and move into the first and sole position on the property.

Quote from @Zachary Cain Humphrey:

Quote from @Ryan Muska:

They are adjustable rate.

Typically need to be in second lien position (there are exceptions).

They are like a credit card (pay it off and use it again as many times as you like during the draw period).

There may be a required initial draw amount you may not be allowed to payoff for a certain period of time.

Blended rate with a first mortgage and a HELOC in second may be higher rate than just cash-out refinancing. So, don't be bound to the rate of the first mortgage!

 You said, "They are like a credit card (pay it off and use it again as many times as you like during the draw period). What do you mean by paying the heloc off during the draw period? Do you mean progressively pay off the heloc so it stays perpetually open for use?

Great question! 
For a 30 year HELOC, there may be 5 of those years where you can actually use the money (this is the draw period) whereas the rest of the 25 years are used to paydown the remaining balance at the end of the 5yr draw period. 
You will also be required to make some sort of monthly payment during the draw period if you have a balance left on the HELOC. This may be principal and interest or it may just be interest-only. 
But if you were to payoff the balance on the HELOC before the draw period is complete, you can use it again since there is still time remaining on the draw period.
Further, if you have a HELOC for $100k and need to use $50k now and the other $50k 6 months from now, you can do so! As long as you are not going above your draw limit, you can use it and pay it off as much as you want. Just like a credit card!
I hope this shed some light on the situation!

Good luck. Life Estate Deeds are rarely accepted by lenders. May have to change title first or have to change title at closing