All Forum Posts by: Zack Karp

Thanks @Paul De Luca, I appreciate you!  @Rafael Nava let me know if I can help in any way.

@David Niu you won't find a lender to do more than 70% cash out on a investment property 2-unit, because that is the max LTV. This is set by Fannie Mae & Freddie Mac. You will not find a different answer from lender to lender. Your only option for a higher LTV is a different loan...other than Conventional. Period.

Best of luck!

@David Trujillo I don't think anyone actually understands your question.

Are you asking about doing a cash out refinance? (pulling out cash on top of your existing loan amount)

If so, then the answer is yes, the rate will be slightly higher than doing a rate/term refi.

If that's not what you are asking, then please clarify.

And call your loan officer.  Don't rely on BP members to answer an unclear question.  Garbage in, garbage out.

Best of luck!

@Jonathan Klemm thanks for the tag!

@Alex Doty I'll DM you, it is absolutely critical to map out your gameplan and strategy here so that you and your GF can divide and conquer, and maximize your lending power.

@Matthew Dembski not anymore. Freddie Mac announced in December that the Home Possible max LTV for 2-4 units is now 85 LTV (15% down), effective 4/1/21. All loans using 5% down must close by 3/31.

I have helped HUNDREDS of investors house hack a 2-4 unit with 5% down Conventional using this program.  Trust me, I am super bummed that Freddie nerfed this.

@Jaston Robinson you can't get a Conventional loan with 5% down anymore on a 2-4 unit.  There is a program called Home Possible that allowed 5% down, but that program has been nerfed to 15% down now on a 2-4 unit.

Your only low down option is FHA (or VA for our Military). You would need to refi that first one out of FHA into Conventional in order to free up your FHA eligibility. Or move 100 miles away and you can get a second FHA loan.

Hope that helps.  Best of luck!

@Mark Kemink the only bank I know of in IL that does investment property heloc's is First Midwest Bank.

Reach out to @Michael Barbari here on BP and he can take care of you!

@Ralph Pombo a portfolio loan is based on the LENDER'S portfolio, not the borrower's portfolio.

Hopefully that is the confusion that you needed cleared up.

@Ralph Pombo LOL was just making a point.  It's because then I am the lender.  It's my money and I can lend it to him as I see fit.  It's part of my portfolio.

@Ralph Pombo a portfolio loan is a loan that any lender can make using their own money and guidelines.  Period.

That term can very often be misused, 100% agreed.

Hard money is a type of a portfolio loan.

Cross collateralization can be a type of portfolio loan.

A commercial loan is usually a portfolio loan. (commercial loans can be done on residential properties to a LLC)

Me lending my Uncle $10,000 is a portfolio loan.

What you are looking for is a loan outside of Conventional guidelines.  This can be performed as a commercial loan through a small/local bank or credit union, by a hard money lender, or by many other lenders as a rental property loan.  Brokers who do commercial or specialize with investors can be of great help to you here.

If you are trying to get 1 loan to buy 4-5 properties, that is a cross-collateralization loan, aka blanket loan.  Very difficult to find and execute.

If you are trying to get 4-5 separate loans at once to buy 4-5 properties, that is much easier.

You can apply the 1031 either way, you just have to identify the properties that you are buying.

Hope that helps and best of luck!