All Forum Posts by: Zachary Dosch

Im guessing you have free and clear property in the $300K range so I would just take out a line of credit against that property and advance money off of it as needed. Qualify for the loan off of your personal income.

Keeping it simple is going to help you with the banks. They will really drag their feet if you get into cross collateralization.

I actually do this to a degree. The LOC just greases the gears for your RE investment machine.

BA in Business Admin, Finance, & MIS and a MBA from The University of Mary

Certification in Executive Education from Notre Dame

Did residential mortgages right out of college then transitioned into Business Banking/Commercial Lending/Advising.

Like others have stated, I don't think there is one right answer. It all depends on where you are at in the investor life cycle and what your portfolio looks like.

New properties that I could see myself holding for 15+ years Ill put on a 15 year loan because I want them paid off asap. Properties that cash flow great but I only want to hold onto for around 5 years I will put on a 30 year loan to squeeze all the cash flow out of that I can.

Right now Im about 80-20, 30 year loans vs. 15 year loans because in still in the accumulation mode and the increased cash goes towards the next down payment.

The fact that banks are willing to lend money fixed at 3.5% for 30 years might be one of the dumbest moves by any financial institution ever. Watch what happens when the rates go up. Major incentives for extra principal payments which we should be in position to make after all this increased cash flow.

Yeah, there's nothing wrong with asking questions. Getting around the down payment is the age old question. Once you have a couple properties, coming up with 20% will be much easier as you can use a portion of the positive cash flows untill it snowballs into a really profitable situation.

Is moving into the property an option so you can do owner occupied financing? Some people do this 5 or 6 times to get their RE portfolio going.

The mortgage company is going to write the loan at 80% of the lessor of the purchase price or the appraised value. Really, the only way around that is to buy the property from a relative and have them "gift" you the equity but that doesn't usually go over so well. You could also get a loan agreement with a commercial banker to take all your properties as collateral so you can use the equity from each property and turn it into a mini mutual fund of investment properties. Thats fairly tricky and you will have to catch a business banker on a really good day to get somewhere with that idea.

@Rich Weese some day you will have to explain this "pickleball" to me.

Thanks for the correction - Ive been out of the conventional mortgage loop for a little bit!

Just another reason why I like working with one national bank and one regional bank.

Here come the Irish!

Welcome to the world of Frank Dodd.

What about taking out a HELOC on the property. The interest rates might be a tad higher but some of the banks I use can go up to 90% LTV.

I have one property that is financed by a 15 year loan that has amortized quite a bit. I have a HELOC to pull out the equity for the downpayment on the next house. Once I get it paid down, I pull out the money to rinse and repeat. Thoughts?

I personally pick up the rent checks for the SFH. Gives me an opportunity to glance in the house to make sure everything is under control.