All Forum Posts by: Sam Burnoski

Seeking $35k (could be pieced from multiple investors potentially). Turnaround should be 5-6 months.

Return on investment would be set at 20% ($42,000 returned).

I have been renovating properties for 5 years (30+ properties completed) and am seeking this investment for my latest deal under contract.

I have taken in more than 50 such investments over the years and every single one has been returned with the agreed upon profit.

I have a crew of full time guys that work on the renovations.

Message me for more info.

I have a 4 unit in a bridge/rehab loan that I need to refinance. The property is in IL. The property numbers are excellent. I am a very experienced real estate investor and house flipper.

I'm having a hard time finding a lender that doesn't have crazy terms and requirements that will do a 75% DSCR cash out.

It's frustrating because I have the perfect lender for this scenario in WI, but they don't lend on IL properties. I know there has got to be other options out there than what I have found so far.

Maybe there is a bank, credit union, or a private lender that will hold the loan on their own books? 

@John Wijtenburg thanks for the reply! That is helpful.

@Michele B. Are you able to connect me with any of the lenders on these deals? It would be greatly appreciated!

Are there any lenders out there that would refinance up to this ltv? Property in question is a mixed use investment property, not owner-occupied. Good credit score. Old property. High cap rate.

@Andrew Postell Thank you for all your help.

You guys don't even know the property I'm looking at. You know no information- not where it's at, not market prices, not anything. And you have no idea how I run my systems. You cannot make a judgement. It is laughable that you are calling this a bad investment with zero information.

Also, $550 mortgage payment already included the taxes and insurance in the escrowed mortgage calculation. Tenants pay all bills, too. I have money saved for reserves and maintenance, but this is a very low maintenance place.

I am well aware of the expenses incurred in a rental property investment. I have some myself (and cash flow pretty well). Actually, I calculate everything very conservatively, and I only pursue something if I think I can get it below market value. I don't have to prove this to you. I simply wanted a question about loans answered.

And the bank account analogy? Seriously? Is someone going to sign a binding contract to put money into my bank account each month? because that would be a more appropriate analogy. Say I owe $800 a month (for the first 3-5 years only, mind you), I would bring in $950-1000 a month, then I would have someone PAYING THE MORTGAGE AND EXPENSES (minus repairs/maintenance) for me. And if an expense pops up or I have a vacancy or eviction (unlikely because of the area and because I have good tenant selection criteria), then I will take the negative cash flow for a month here and there. 

That is basically one of the foundational upsides of rental property investing- have someone else pay and build equity for you. I am not banking on appreciation, but I know this property is under market value as it is. If it doesn't increase in value when the time comes and I do want to sell it (I plan to hold this one for possibly decades), I've just paid down thousands and thousands on this loan on someone else's dime.

I'm not gonna give out any more personal information or hints at what this property might be. And I'm probably not gonna respond to subsequent posts unless someone wants to help me achieve my loan objectives- which would be greatly appreciated. I've already gotten needlessly worked up and wasted too much time on this reply.

Jason DiClemente thank you for the input. That is a good point. On this property I am not overly concerned with cash flow as much as building equity, though. Andrew Postell do you think an LLC would be the best business entity to use to achieve what you mentioned above?

@Andrew Postell thanks a ton for that response. Very helpful. This is an option I have not explored. 

Would an LLC be the type of business entity that would work best for this?

Also- I have about $20k in equity between 2 properties. I probably won't be approved for a HEL or HELOC because my LTVs are high. Would a portfolio or commercial lender allow me to borrow against my combined equity if I wanted to take out the aforementioned loan for $10k-11k even if I have a high combined LTV?

I really would like to find a way to keep building my portfolio.

Here's my situation: 

I want to buy an investment property at 20% down (which would be $10k-11k).

I can get a loan for the down payment (talked with a credit union already). If I choose 5 years for repayment of this loan, it will be about $210 a month. 3 years would be $320 a month.

Are there lenders that would approve me for a mortgage if I used this loan to pay the down payment? i.e. I would have a $210 or $320 monthly payment in addition to the mortgage payment of around $500-$550?

The property would bring in about $950-$1000 a month in rent and it's in great shape. So it will cash flow a little bit even with the 2 payments.

Would it come down to DTI ratio?

This is a great investment opportunity I don't want to pass up, so I want to explore all my options for financing.

Secondary question- would it affect my mortgage approval chances if the loan for the down payment was a home equity loan vs. an unsecured loan vs. a private money loan?