All Forum Posts by: Zach Adams

 Thanks! This wasn't the case last year, but will check them out now if they're offering.  

Zach

Thanks so much guys.  Love BP!  Will investigate these options

 Great rob thx so much.  Will look into this tmrrw 

I'll be concise.  Looking to buy a MFH in the $450k-$500k range in north San Diego.  It will be owner-occupied.  I have been W-2'd for 13 years, but the last 2 couple of months started consulting and am now a 1099 contractor.  FICA 800ish.  All real estate properties/taxes look good and no past issues.

I was told by a mortgage broker that since I'm not W-2'd anymore and don't 3 years of schedule C from 1099 that I won't  qualify for conventional fannie program.  I sought private money and sourced a non-QM at 5.75% up to $500,000 with 20% down.  I looked into selling a property to get the downpayment and for reasons I won't go into, that may not work.  

Now I'm thinking two things:

1- Is anyone doing HELOCs on investment properties right now? I looked a lot last year with no success. I have a property valued at $210,000 with a $105,000 note. A 75% LTV HELOC could give me $50,000 for a downpayment. Could bring another $20,000 to the table for a total of $70,000 downpayment, but would need have a loan in the 15-20% downpayment range to meet my market. Again this is Owner Occupied.

2 - Is my broker correct about my loan limitations given that I'm 1099?  

Any help or suggestions are always appreciated from you guys!

Zach

 Sounds like a deal!  Does your guy do out of state?  

 Thanks Preston!  

 Guys thanks so much for the input - I just love the BP community.  I've got a small portfolio lender working with me on this.  Definitely trying to get the seller as much cash upfront because I know he's looking for cash.  If he's interested I'll post the details here.

Been working on this deal for a Triplex and heard from the son of the owner (who is the agent) that they would be open to seller financing the property. I can't qualify for a conventional/FHA right now (not enough cash) and was super excited about my first seller finance deal. But the father decided he needs the cash now and is already involved in another seller finance.

How can I arrange this deal to sweeten it for the father? To get a conventional on this I need 20% down. I don't know if between the seller carry and some additional cash I can get a conventional at 80% LTV and get him paid out at least 80%. Would this work?

This cannot be an owner occupied deal for me right now.  

Any advice is appreciated!

I decided to take out a LOC on a rental property I own with a 0.57 LTV. The lender at BofA assured me I could use an investment property. I found a deal for a triplex locally and trying to purchase as Owner Occupied using FHA and close the HELOC before opening escrow (if I got that far).

BofA called me this morning and said they don't do LOCs on investment properties. There goes my downpayment. I have cash but not quite enough to make it work when I run the numbers. Called Wells Fargo and they said they would do it, only they do up to 60% LTV, so I'd virtually get no money.

Thought about a loan from a friend with real contractual terms.  I've heard if you can provide documentation some lenders and underwriters will accept this.  Is this true in your experience?  The other option is to bring a couple of friends in on the deal which I may look at doing.  

I can wait for the next deal, and more cash on hand, but this was a good deal and I was pumped!  Hate to let this one go...

Am I missing anything?