All Forum Posts by: Sina Bigdeli

Question:

What happened to your mortgage / loan when you finally get the house, and how is it related to the federal funds effective rate? 
my very base level understanding is that your mortgage lender sells the loan and it changes hands over and over until it ends up as govt bonds sold to private investors. 
but it’s not sure about the details or accuracy here. 
a detailed explanation would be super useful 

not in an LLC yet. but was planning on putting it on after refi.

Hello folks, 

I'm looking for a lender recommendation to do a cash out refi on an investment SFH property I have owned for ~3yrs in Placer County, CA.

Looking for 30 year fixed, 70-80% LTV.

in my honest opinion, credit score is not that important. What's critical is the tenants credit history. things like:

- % of on time payments (I like this to be 90% or more)

- debt to income ratio (how many open credit lines i.e. car payments, child payments, etc they have) and compare that to their income .

- any defaults, liens, etc on them. 

- duration of open credit lines. If they have consistently showing credit line for a month or two open, then they close it, it tells me they are not really an established creditor. 

Generally I am looking to answer "where do they prioritize their payments" in the financial life. Do I have to chase payments, or do they consider paying their bills and rents before going on vacations, etc. Credit score alone doesn't tell me this story. 

in my honest opinion, credit score is not that important. What's critical is the tenants credit history. things like:

- % of on time payments (I like this to be 90% or more)

- debt to income ratio (how many open credit lines i.e. car payments, child payments, etc they have) and compare that to their income .

- any defaults, liens, etc on them. 

- duration of open credit lines. If they have consistently showing credit line for a month or two open, then they close it, it tells me they are not really an established creditor. 

Generally I am looking to answer "where do they prioritize their payments" in the financial life. Do I have to chase payments, or do they consider paying their bills and rents before going on vacations, etc. Credit score alone doesn't tell me this story. 

I personally love using Zillow rental manager. Basically everything through Zillow Rental Management. You can get credit report, national background check, tailor a lease application, and even collect rent through it. 

It's beneficial to tenants/applicants too because they pay a 1 time fee of like $30-$40 and can apply to many properties as opposed to ~$30-$50 per application.