All Forum Posts by: Sterling Pompey

@Jason Wray, thank you for taking the time to respond this makes a lot of sense. Are you aware of any lenders that specialize in working with Travel nurses/PTs of the such that we can connect with? Also, if you were in our position, what questions should we be asking the lenders to make sure it is a good fit? Thanks again for your time and expertise. 

My friend and I are planning to buy an investment property (My second his first). It would be his primary residence so most likely a duplex or triplex house hack. We are running into a roadblock of him getting approved for a loan. He is currently a travel PT that makes $37k pre-taxed but after including all his stipends, his annual earnings are  closer to $95k-$97k. The issue we are running into is that lenders are not recognizing the excess amount he earns as income, therefore it looks like he will not be able to afford any loans that he would be approved for. Are there any other Travel PT’s or people that have faced a similar problem like this before? How did you over come it? 

For further context, we are trying to have him be the name on the loan because he would be able to utilize his first time home buyer loan to take advantage of the lowered offered interest rate. Is there anything I can do as a partner in the deal to help in this situation while still having the loan in his name? If anyone has any suggestions, that would be greatly appreciated! 

 @Carlos Ptriawan Thanks for taking the time to respond. This make a lot of sense, I appreciate your insight! 

@Matt RuttenbergThis was a great explanation, thank you for taking the time to respond.

I was approached with this concept recently. From my understanding, it sounds like you take out a life insurance policy and take out loans against it to fund your deals. I haven't heard it discussed on any of the Podcasts so I'm curious as to if anyone in the BP community utilizes this strategy? If so how has it worked out for you? 

Thanks in advance for your insight! 

@John Warren Thanks for the info. I've heard that it was a go to from other lenders in BP too. I'll keep that income bit in mind as well. Thanks for taking the time to post! 

@Chris Mason Thanks so much for the in depth response! During my initial call with the lender, he had mentioned some of these points if not all but as always, it doesn't hurt to hear/read it again as there were certainly some aspects that I missed after reading your review. Thanks for taking the time to reply it is much appreciated. 

 Got it, thanks @Devin Peterson for your insight, well received and I will be sure to keep those points in mind! 

Hi All, 

Has anyone heard of the "Home Possible Loan" from Freddie Mac? What are some Pros and Cons of using this method as this is the first time I'm hearing about it. I've never heard of it mentioned on the BP Podcast but one lender suggested it to me today as a way to scale a multi-family portfolio (buy first multi-family with the first time home buyer's loan FHA, then buy the second multi family with the Home Possible loan Freddie Mac.)  

For context, I'm a single 27 y/o working for an Industrial REIT as an Asset Manager and am blessed to make decent money for my age. No kids, living at home with my parents to pay down my car and student loans. These properties that I'm planning to purchase, will be my first two in the next coming years. My original plan was to buy a single family/condo live in that for a year or two while I fix it up then rent it out and move on to a multi-family next. This conversation was prompted when I asked the lender (who explicitly works with investors) "what the biggest mistake is that new investors make?" The lender said, you just made it with that plan.

The lender (been a lender for 25 yrs) said the investors he's seen have the most success utilize the strategy I mentioned in the beginning of this post. The lender said I'd be able to utilize the down payment characteristic of both loans to essentially get into the real estate game and be on a good track to start scaling. Obviously, the lender mentioned all the good sides of the loan so I wanted to do some due diligence as this is the first I'm hearing of this. Does any one have any experience with this loan product? 

Thanks in advance for any and all insight.