All Forum Posts by: Yoav Gilad

Hi Donald, the only difference that we see nowadays for Foreign Nationals in a 30-year, fixed-rate Debt-Service Coverage Ratio Loan (DSCR) is a slight decrease in the Loan-to-Value (LTV) ratio; there is no penalty on rates or points.

Additionally, if your wife is a US Citizen, there shouldn't be a decrease to the maximum LTV, either. Another benefit to using a DSCR loan to your entity is that there is no limit to how many mortgages your entity can rack up, as opposed to an individual (10 mortgages) or a married couple (20 mortgages). I hope this helps! Feel free to reach out if I can answer any other questions!

I love it! Yeah, we're playing with our referral system, both for properties and loans we originate. But being clear on your buy box is crucial! Thank you, Shawn!

Hi new FLIPPERS!

Are you having trouble finding good investment properties? Given the decreased inventory, what is your plan to maintain or increase your growth?

Have you ever tried buying from distressed sellers? Not distressed properties. Distressed sellers.

You need to find people who WANT to sell. Who NEED to sell. If you could help them by buying their house, treating them fairly, and providing the cash they need, doesn't that sound like a win-win deal?

This means looking through public records for probate cases and divorce cases. It could mean talking to folks who lost their job or need to pay medical or car bills. It means speaking to people whose homes are in pre-foreclosure, foreclosure, or are behind on property taxes. You could even offer a lease option for when they're back on their feet... get creative and generous!

The key is that inventory is slim and you need to WORK for good investments. They won't come to you. Go find those WIN-WINs!

And please share how you're maintaining deal flow with other new investors in the comments below! Thank you!

I would think of this problem differently: I might encourage them to explore ADUs... this would give them an additional stream of income and would likely only require a relatively small chunk of money in their savings (relative to the total cost).

If they could partner with someone that has experience building and/or flipping (to qualify for the construction loan), then cash them out with a 30-yr DSCR loan (and use that as the builder's profit), then they could rent the property and enjoy the cash-flow. I'm not saying this would be easy, but if their credit is high enough and conventional loans are a no-go... it's worth exploring.

Also, how do they have no income if they're hardworking?

I take exception to part of your post, Mr. Buxton. Specifically, "...find a strong appreciation market." If you're relying on appreciation to float your non-cash-flowing investment, you're in trouble. What if the market turns before you need to cash out?