All Forum Posts by: Steven Santon

Quote from @Robert Hicks:

Hi all!

I'm a full time military reservist living in East San Antonio. I've got a small portfolio of investments in the SFR/STR space in other cities. I'm looking for a good SFR or 2/3/4 unit that would be a good candidate to fix up and rent long term. I'm really wanting to invest locally if possible since I will be living in the area for the next 8 years. Thanks!

Hey Robert,

My family and I are also moving to San Antonio here shortly (hopefully for the long haul) as my wife is getting stationed at Fort Sam Houston! 

@Hamp Lee III is a great resource and real estate agent down in the San Antonio area! 

-Steve

Quote from @Verna Barnes:

Hey do you bid you know of any programs to help person who had good income but a credit score of 580 get approved for a loan . 

Hey Verna, 

580 is usually good enough for VA, FHA, and USDA! Would love to assist!

-Steve

Hey Rebecca, 

There is a VA RENOVATION LOAN! It is a little nuanced but similar to the 203k FHA loan!

I have not used a VA RENO LOAN for any of my personal current VA LOANS nor have I lended to anyone yet but it is an option.

Another recommendation and sometimes easier option is to go VA and then utilize a local credit union or bank and see what kind of renovation loans they have to offer. Just another suggestion!

I don't know where you are looking at buying but I can get you in touch with someone who does loans like that! 

Quote from @Steven Miller:

Hey BP, I just got word I will be stationed in southern Alabama. I am looking for an investor friendly agent who has experience in multi family homes. I am primarily looking for a 4-plex to house hack while I am stationed there. I will most likely utilize the VA loan but open to other loans DSCR etc. Thank you all for the help!

Hey Steven, great name first and foremost and thank you for your service. 

Please utilize your VA Loan if you can. Don't know if you have any out already but it makes the most sense considering you won't have any PMI for the life of the loan.

DSCR is strictly for investments!

If possible don't go FHA either because you will have Up front PMI and then MI for the life of the loan!

I have multiple VA Loans out right now and would love to also send you an informative VA Loan presentation!

Let me reach out to my network and see if I can get you in touch with an agent down in southern Alabama! 

Quote from @Victor Reyhlander:

I am relatively new to the investing I don't really have the best credit I'm hovering over mid to low 600 are lenders willing to lend to those who have lower credit scores as investment properties 

Hey Victor, welcome to BP! 

If you are trying to purchase an investment property you are going to want your credit score safely above 640… 

Because the risk of defaulting on a loan is higher when it is your second home or investment property your credit score must be higher if you want to purchase an investment property as opposed to a primary  (occupied) purchase. 

With the government back loans, USDA, FHA, VA… you can purchase with a credit score at 580 and above. Conventional (Fannie, Freddie) loan 620 and above but you must occupy that house as your primary residence! 

I don’t know where you are at in your journey but if you purchase a single family house or multi family house with a government backed loan and house hack, that is an easy way to get started in your real estate investment journey. It will also help build your credit faster as the credit agencies see you are paying back your installment debt (mortgage debt) in a timely manner. Nothing boosts your score more than on time payments!

I hope this is a good starting point for you! Please continue to ask questions! I would love to help out!

Quote from @Account Closed:

Hello everyone, 

I am looking to buy my first investment property this year and looking to focus primarily on HUD voucher holders.

I am inquiring about different financing options that may be out there that I am unaware of. I already am using my VA home loan on my primary but was curious if there was any loan options for veterans specifically for investment properties. If not, what are some ways I could fund the start of my investment journey as I only have about $30k in liquid funds.

Any help would be greatly appreciated. 

Thank You, 

Nelson

 Good morning Nelson, love your enthusiasm about acquiring an investment property.

I'm an Army Veteran of 9x years, a RE investor, and a lender!

@Hamp Lee III provided some great insight and some potential solutions for you in this forum.

A majority of investment property's require you to put 20% down on the property (you can technically put 15% but would owe mortgage insurance). With the information you have provided you are searching for a $150,000 investment property if you can put down $30,000...

A couple of ways you can acquire more capital quickly...

1) Take out a HELOC against your primary property, use some of the funds to provide further funding for a downpayment

2) (if you have money in your TSP) you can borrow against that and set up a repayment plan to replace the funds you borrowed against at a low interest rate... I did this for one of my investment properties and it worked out well

3) Joint Venture / Syndication... just like Hamp alluded to, create an investment opportunity for other investments and raise capital that way

4) Move out of your current residence (The one you purchased with your VA Loan) and purchase another SFH or Multi-family property!

There are no special investment programs for veterans.. however, if you purchase a multi - family property with your VA loan and live in one of the units, you are allowed to do that! ... Depending on what state you live in, you may be entitled to special assistance programs well as an eligible veteran. Remember, if you have a 10% VA Disability rating, then you dont pay that VA FUNDING FEE.

Lastly, don't limit yourself to just the HUD Voucher Program tenants (although a good program and an underutilized one by investors)! Get with a great realtor to assist you in your search!

Let me know if you have any more questions!

-Steve

Hey Mary, 

Great question!

-So the minimum down payment requirement for a second home is only 10%! There are some other stipulations like there has to be a valid reason on why this is considered a second home and it is supposed to be occupied 14x days a year according to the IRS! 

1. Internal Revenue Service. “Topic No. 415 Renting Residential and Vacation Property.” Retrieved May 2022 from https://www.irs.gov/taxtopics/...

-Technically the minimum for an investment home is 15% but the borrower will have to pay PMI on it... so that's why a lot of lenders require 20% down!

Would be happy to talk further and assist on the lending side of the house! 

Hey Raka, 

I live in, and have several real estate investments in Bloomington. I'm connected with the real estate community in this area and also am a lender. Would love to chat and talk B-Town strategy! -Steve

Quote from @Patrick Gilbert:

Quote from @Max Emory:

Do you guys have local REI meetups? That's the first place I would look for experience with this other than these forums.

Yeah, for sure. I’m attending one next week where I plan to ask the same thing. Have also reached out to my agent in addition to posting here just to cover all bases!

Hey Patrick, 
I've invested in an MTR in Bloomington, IN (proximity to IU and the enormous new IU hospital) have helped make it successful. I'm assuming a similar strategy up in Indy will work (near Butler, near a major hospital)... Also what REI are you attending next week? I'm attending one next week as well. Would love to connect there and share my experience. I'm also looking to invest in another one! -Steve

I noticed a decline and interest in my Airbnb / VRBO as well... I paused my availability and put them up on the mid-term rental market utilizing furnished finder and Facebook for advertising platforms and have been successful with far less hassle than a STR... The profitability for me at least is almost as much so it's a no brainer... I know it doesn't help your current situation but it could be a strategy to implement in the future!