All Forum Posts by: Account Closed

For fix and flip, it is a short-term loan. After fixing it up, you want to keep as a rental. If you go to the same lender, they usually don't need the seasoning to refinance you to a long-term loan. If you go to a different lender, it normally requires 3 months rent income.

Commercial loan is a good choice. Usually the lenders require minimum value for each property is $75k.

You can find a hard money lender to finance the purchase + renovation. This is a short-term loan. Right after the renovation is done, you can refinance to a 30-year fixed rate loan for renting. No W2 paystub needed. 

Vacation home or secondary home is on personal name as the mortgage is different from investment property. Investment property can be put under an LLC for sure. And there are commercial loan lenders out there prefers to close with an LLC.

You don't have to open an LLC until you have a property in the process of closing. After financing is approved, you can start to open the LLC to hold the property and close the commercial loan with the new LLC. LLC is just holding the title, the owner behind and the collateral property determine the eligibility of a commercial loan.

If you want to live in one of the two homes, this is not feasible. Because the one you live in is a primary home, the other would be investment home. The interest rate for primary home and investment home are totally different. And of course you cannot claim two primary homes. You cannot claim the other as secondary home because secondary home needs to be 50 miles away from your primary. If it's a duplex, you can get primary home rate. In commercial world, I mean you buy residential properties for rental, you can buy multiple houses in one loan as long as the houses are in the same county. But commercial rate is even higher than investment rate.

I think 2.5 points finder fee is too high for a $475k property. 1 point would be acceptable.

Are you talking about house value $40k-$60k? It will be very difficult to find some one can finance on such cheap houses. The best bet would be a local small bank. Good luck!

For a vacant office building, you can only get bridge loan to acquire it, which means high interest rate (9-12%) and short terms (1-3 years). In additional, you need to have good track record of managing office buildings and net worth at least approximately equal to the loan amount. Your down payment could be 25-30%. The good thing is that you can do interest only payment. After you fill in with tenants during the bridge loan period, you can refinance to a long-term (25-30 years amortization) loan.

Paying processing fee upfront for a hard money loan is a no-no-no. 4% is impossible for a short-term fix and flip loan. 4% for 30-year long-term may be possible, needs  to look at the points/origination and other fees.