All Forum Posts by: Steven Goldman

The mid west is still substantially undervalued and it would not surprise me if it begins to rise and stabilize at a substantially greater median value. But that hardly addresses the central subject of your inquiry. All of the national dscr lenders have minimum loan sizes and in many cases the deflated markets in certain cities or areas will not support their minimum loan. That is one of the factors keeping the real estate values in those areas lower. Brokers are paid to produce results in these types of scenarios. After all if it was easy you could do it yourself?

We find that local banks, credit unions and regional lenders will often be willing to lend on your smaller properties.   We encounter this situation in our home state in North, and north Western Pennsylvania. We are closing two Pennsylvania rentals with a total  loan size around 75,000.00 this month. The secret to success in the low value areas is to build a good team of real estate professional who can guide you through the woods. Good luck.

Good morning:  Where are you looking for a title person?  I generally have had excellent experiences with Stewart Title of Texas. Their agents are well trained and they are a professional organization. In a different life I was a member of a title company who wrote for Lawyers, Stewart and Commonwealth. If you are working in a particular footprint I would ask agents in that location who is a good title choice for investment property and commercial loans. Everyone is not good at everything. Good luck. 

Try Magnolia Bank they have competitive rates. If you are looking for a funding company then they can be any where.

Mike Davis is correct you would benefit by finding a JV partner who is not the property management company. You want a passive partner who is interested in a long term return on capital and short term income. Multi family investors usually attend their own meetups. I would look for a multi family meet up in your area and outline the deal and see if their are any takers.

There are any number of lenders in the market that will do a stated income loan at a higher interest rate for a owner occupied property. You may have to bite the bullet buy with a non conventional loan and than refinance when your income is qualified. Good luck.

@alexhunt is accurate. Remember that the LTV will be tied to four things.

1. Type of property

2. Credit Score of the Guarantor(s). HML will allow you to have only one member as the guarantor.

3. Projected Fair rental value as determined by the appraiser.

4. Debt service coverage

So, someone who has a conforming property; with a 750 or above credit score; with a 1.2 or better debt service coverage; which is dependent on the fair rental value; will get maximum allowable LTV under the lenders guidelines.

That said: This is why you need to consult a mortgage professional, be it banker, or broker. Good luck.

Karen with self employment income the easiest way to finance a rental property is with a debt service coverage lender. You will need 20 percent down, fees and closing costs to qualify. If the monthly fair rental value exceeds the projected principal, interest, taxes and insurance, than you will qualify without considering your income. A minimum 650 credit score is required. The higher the score the better the LTV and rate. If you have a lower score, you will need more down money. These loans are 30 days to process and at the moment rates are rising. The rates are currently in the range of 6-7.5. I wish you luck.

I get it. So long as you can source your funds on deposit as from legitimate sources they will not be questioned. A funding company does not care about sourcing. As long as it is in the LLC account at time of application and you sign a non laundering affidavit they are o.k. with the source.

Hi Michell: So you will need he necessary down money to purchase the vacation property regardless of whether you use bank financing or funding company financing. Your skin in the game can not be financed with a bank or funding company. The general rule is no second mortgages. 

If you do not have the down money, loan and closing costs you can always find a JV partner. As I have said many times on BP it is easier to find money than a good deal. Good luck!

Hi Rich: Be careful about building a portfolio of inexpensive properties.

I know Pittsburgh has opportunities to purchase these types of properties.

Only local banks and credit unions will be interested in financing on a single or portfolio, which is comprised of under 100k properties. If you are buying these types of properties you must be willing to work with a local bank and accept a 5/20 or a flat ten year in this space.  Local bank rates for this size deal are 4.5 to 5.5 with very good or excellent credit. Rates are rising fast. Good luck.