All Forum Posts by: Account Closed

For second home, I recommenda Tony Xie in Raleigh. He is good. I will PM you his phone number.

3% on 8-plex is awesome deal for commercial loan if they don't charge you crazy points. 

Is he purchasing primary home or investment home? For primary home, he can show the business tax return to prove steady 2-year income. For investment property, he can go with commercial loans. No W2, tax return needed. Qualify a loan based on the cash flow of the property.

If you still qualify for a conventional residential loan for your investment property, go for that. Call a couple of mortgage lenders should give you an idea of the current rate. If you can't qualify that, commercial loan would be your second choice for investment properties. Current rate is around 4.5-5.5% for 30-year fixed rate loan, depending on your credit, experience, and leverage you want.

Second home can go under your personal name. Investment property can go commercial loan if residential mortgage lender denies your loan. Commercial loan can be used to purchase investment property and it will not go to your personal credit report, so won't affect your personal DTI.

What are the numbers? I know fix and flip lenders can do up to 90% of purchase price plus 100% of rehab cost. Are you looking for even higher leverage?

What kind of property is that? Commercial lenders look at the cash flow of the property. Do you have the past financials, ie rent income, tax/insurance/other expense?

Hi Kayla, you can do a construction loan first. After building, then refinance to a rental loan. Construction loan is short-term loan, usually 1-2 years. Rental loan is long-term loan, which needs the house to be move-in ready. So combining these two loans should fit your needs.

Are you fixing them up and keep as rentals? Usually lenders only do 75% of ARV if you need to finance the repairs portion as well. If no renovation is needed, 80% of purchase price is doable.

@Jigna Thakkar What kind of business loan exactly do you need? Is it for property purchase or for your business operating? If it is for property purchase and rent out, new LLC is totally fine. If it is for property purchase and for your own business use, then SBA loans would be the best option. If it is for business operating, then local banks and credit union would be a good start to ask.