All Forum Posts by: Steven Goldman

Good Morning: Slaiman: If you are not reporting that income then it will not be accounted for in a full document loan. DSCR lenders do not care about your income. So long as you have a 650 or so credit score and the rent covers the principal interest taxes and insurance and condo fees than they will lend you the money. They do require 6 months cash reserve. Also the better the credit score and coverage ratio the better the rate and LTV. Good luck.

So if you use debt service coverage financing your LLC has nothing to do with it. It is based solely on credit score and debt service coverage. D.S.C.R. is calculated as follows: RENT/P.I.T.I .= D.S.C.R.                                                                                                        Some lenders reduce the rent by management fees and or 5 percent for repairs and vacancies. So unless you are trying to borrow money for the LLC as a business loan you need not worry about its credit rating. You will also need six months mortgage payments in reserves in some type of account. It is not escrowed but it is a requirement. You should form a partnership with a mortgage broker and run your ideas and deals past the broker before you commit to them. Good luck.


 

Buying a pre-foreclosure property is about coordinating the sale with the owner and the bank. Any good loss mitigator would advise you that if you are willing to payoff the owners mortgage in full, pay the tax and other liabilities that the bank upon being informed of a sale which covers their mortgage will delay foreclosure to allow you to close. 

here is my advice about the order of tasks:

1. get an immediate title search to find out if their are other liens or judgment's or tax liens.

2.If their are not: Draw up agreement of sale. When signed:

3. Advise the lender that you are in need of the payoff and are buying the property and request a postponement of the foreclosure.

4. Settle on the property. Make sure that the owner has moved out prior to settlement. Do not let the owner remain in possession after closing or you will have a big issue on your hands. Good luck.

Jennifer I believe you are asking if you can directly finance a purchase from a tax sale. The answer is no. Their may be other ways to raise capital such as a HELOC on your home, or a J.V. partner. You can refinance the property after one year of seasoning at its market rate. If you make improvements you will be able to refinance in six months with a funding company. That assumes the title is fully marketable. I wis you luck.

Welcome to the party! Attend the local meetings. Many of them reserve a portion for investors to pitch the properties they have for sale. Join the local real estate investor Facebook group Lehigh Valley Real Estate Investor create a post  looking for a.................... it is another source of off market properties. Connect with wholesalers in the valley. If you use a agent and the m.l.s. you ill just be another buyer at the declared day to submit highest and best.Good luck.

Hi Justin I am going to sound like a broken record: Whatever you represent to your mortgage company in order to obtain financing must be correct, accurate and the truth. That protects you from a free stripes sui, three hots and a cot. 

Sourcing and seasoning are news to me. As @Andrewpostell said, you will have to refinance to change from personal to LLC. You can change your title in some states without paying significant taxes but that would violate your mortgage. Good luck.

Hey Gabriel four things to keep in mind if you choose to purchase a 4plex with DSCR money:

(1) You can not live in it.

(2) You need six months reserve in a liquid or retirement account to qualify. 

(3) You need a good credit score to get a decent rate which will be in the mid 6 percent range right now. 

(4) You need 20 percent down. *

With those four things in mind a DSCR loan may be your best option if you are not working. You should run any property past a mortgage broker before making an offer to purchase. Good luck

* Also no lates on your current mortgage or other mortgages last 12-24 months.

Erika there are stated income DSCR loans available. So you will need no proof of income. The rate will be higher. Just a suggestion.

Hi Erika in order to get started you may want to look at a stated income loan. You will need 20 percent down but no proof of income. The rate will be higher than a conventional or Govt. but it will get you started. Quontic Adaptable Digital Bank does stated income loans for owner occupied. Look them up. I do not know if their footprint extends to Tulsa. You can try Kurt Robison at 317-993-3908. I hope that helps.