All Forum Posts by: Tristan Pearrow

It's not out of the realm of possibility to both invest in real estate and pay down your student loans. You might not necessarily pay them off as quickly, but you can still come out ahead of schedule. If you make good real estate investments and the interest on your loans isn't too high, you could easily cash flow enough to continue to pay the loans down. 

There's also the equity you'll acrue via your investments to to consider. That's future money that you can pull from your real estate investments to then generate more investments, and pay down the student loan debt further. The goal would be just putting off student loan payments long enough to get the investment ball rolling. 

Hi Anna, there is a possible alternative to having the interior appraised. You could take out a renovation loan - the bank will not care about the condition of the interior of the property. As a matter of fact, they expect it to need work, because the loan product itself is designed to get the house "up to appraisal" - therefore you could close with everything just as it is. 

Not all lenders or banks do these loans or know how to do them, but there are both FHA and Conventional renovation products available with 3% - 3.5% down for first-time home buyers just like a regualar purchase.

Hey Ron, there are a few options that come to mind for you. The Portfolio option listed below is one, if you were wanting to take cash out of your all your properties. That being said, you'd fare much better, especially in the non-QM world, with a little improvement to your credit score (Ideally find a lender who can run a credit simulator to see what steps to take to raise your score quickly)

Non-QM lenders tend to either only lend to credit scores over 700, or hit really hard with interest rate for lower credit scores when allowed. If you're planning to refi a big part (or all) of your portfolio, you'll probably want to stay away from what's being offered at a score of 625. Of those I've worked with, there is one that does go down into the 600's on DSCR and possibly portfolio.

There are also some conventional products that might work well too, it really just depends on your goals and what can be done to boost credit. Has anyone mentioned a credit rescore to you?

If you aren't just looking at condos a multi-untit/Single family may be an easier investment option, especially in Florida. Something a lot of my clients have been taking advantage of lately is conventinal renovation financing to get investment properties AirBnb ready without coming out of pocket for the work. 

@Virgil Gonzalez

Also, HELOCS usually have prepayment penalties, so paying them off early over and over could get expensive. 

You'd also be incurring 3 sets of closing costs for one transaction - the HELOC, the refinance, and the purchase which would get expensive as well.

A better way to access capital might be to do one or two refinances on properties with the most equity/no mortgage at all. That would cut down on how many transactions are being done, and the funds from the cash-outs could be used strategically to buy multiple properties rather than needing a new 3-loan process for each one.

Hi Carren, it sounds like you would benefit from a lender running a credit simulator and telling what exactly needs to be done to raise your credit score. Has anyone offered you that yet? It's something I do for my clients and it does wonders for credit, sometimes in a matter of weeks. 

For sure. Yes I do, what's the best way to get in touch?

It sounds like you would benefit from a bank statement loan. This would purely look at your cash flow rather than having to have the income looked at through a traditional underwriting lens. You could also go the DSCR route, which would completely eliminate your income issues becaues you'd be qualified off solely the rental income of the prospective purchase. These are not commonly known programs with your average bank or credit union, but loans that I do all the time as I work with investors regularly. I think either of these would eliminate all your issues.

I'm a senior loan officer, and there should not be a reason that you can't take out another mortgage after a HELOC unless for some reason it is going to effect your DTI due to the payment, and a credit pull for a mortgage/HELOC should not have much of an effect on credit, especially if your score is near 800.

Are you trying to take out a mortgage on the same property you're taking the HELOC out on? The first thing you need is a good loan officer who knows what they're talking about - not a bank or credit union. They have tons of overlays and rules and will tell you no about everything.