All Forum Posts by: Scott W.

@Asher Anthes might be time for you to consider the commercial or private money lending options to help you acquire the amount of properties you want.  There are options to get long-term financing once you get to the 10 properties but you have reached the part where you have to change the game up a little.  You could also look at partnering with other people that do not have 10 properties in their name and leverage their credit to help with getting more fannie mae properties.  Partnering brings a whole new dynamic that it might be better to go down the commercial/private money lending route.  If your wife can start getting W2 income this could help down the road if you want to add 10 properties in her name as well.   

You probably already know this but you are doing great as most people don't have 1 property and you already have 10 and moving to 10 more!!  You got this!

Send me a private message if there is anything else I can help with and good luck!

You could look for a private money broker who could help with finding different hard money lenders depending on the property and need.   Depending on the loan the hard money process should be much simpler than your traditional financing option and you could also look at a getting a line of credit that might help before you have the property under contract.

If you want to raise a lot money and capital then you start getting into syndication and making sure you have the right legal team advice and then you will also need to be careful to only "solicit" money from sophisticated or accredited investors. 

@Chris Mason is right that cash out refinance is still in play.  Find a broker that can help work with you on your deal whether that is a private money/hard money broker or a traditional mortgage broker based on your circumstance.

Hi Russ!  You definitely want to ask the conventional lenders what options you have for the refinance and if you need to rehab you might consider doing a hard money loan so you can finance the rehabs now and not use all of your capital.

One other consideration is that the lender will either provide you a portfolio loan (blanket over all 8 properties) or individual loans for each one.  You’ll want to know if they will allow you to refinance individual properties or if you have to do all of them at the same time.  One last thing is the process of selling one of those properties if you want to.  Will they allow you to do so or will that affect all properties you’ve financed.

Sounds exciting and good luck!

@Dave Spooner makes a good point and your stepdad will probably need to be the one that gets the hard money or HELOC on the property if he is not selling to you. It also might be a good idea to setup an LLC that a hard money lender can lend to so you can clearly distinguish the property that you guys are partnering in with. Finding a lender is a little crazy so look for a private money broker and/or other sources of money.

One key point is that you and your stepdad should clearly define who is doing what and what are the expectations from both sides. Creating the LLC usually "requires" you to figure this out and this would be a great time to make sure you both are on the same page. Will it be a long-term rental or will you sell once you have enough appreciation. What happens in the event that one of you passes or is disabled. Will your spouse or next of kin be a part of the partnership? Don't get too wrapped up to not do the deal, but definitely make sure to take the time to figure out the end game.

In my business when I’m connecting money with investors I’m always asking myself and the investor what is the end game.  “Begin with the end in mind”  

Good luck!

Hi Ed,

If you want to avoid going to family, you might want to seek out a private money broker who can connect you with different lending sources.

Ouch! That’s not a good situation!  The best news is that you’ve hit 12 months and the property is season.  I would recommend you look at private money to help you get out of the residential mortgage and extract some of your equity.  You’ll be paying more in interest but it will give you the flexibility you need!

Hi Jonathan!  The beauty of real estate is the ability to leverage other people’s money (OPM) and allowing yourself rental passive income and long-term appreciation.  It depends on your risk tolerance, but I believe it’s a fine balance of leveraging a little and using some cash equity so you aren’t upside down.  It’s also important to have cash reserves in case the world goes into a pandemic!  I personal believe that it’s a more prudent to have 3-4 properties that are leveraged vs just one fully paid off property.  I hope that helps!

Are you trying to refi on a house that you are living in or on a rental property (non-owner occupied)?  

Hi Clifton, if you find the right deal you can use hard money loans to reduce out of pocket money so that you can invest in more real estate deals.  Use a broker to help find the right lenders, and/or see about owner financing from the deals you are looking at.