Represented here in no particular order is one national lender, one that lends in lots of Southern states including Texas, and one local to Dallas. 

What made you interested in investing in this type of deal?

There isn’t much to be made in terms of commission so many loan officers don’t want to mess with them, and any loan is going to have fees associated with it of course…how high the lender’s fees are and how low the loan amount is will factor into whether or not that loan is compliant and can pass as a qualified mortgage. 

I consider myself small potatoes in terms of property management: I just got my first two units in March and I am technically a property manager in that I am managing my properties that I bought; I haven't yet worked with clients or made business arrangements outside of my own interests.

So if something ever happens and the loan goes delinquent the only recourse is the subject property, but if the delinquent property is in an LLC with let's say 4 other properties then those assets are exposed to the LLC debt holder - if that makes sense.But they will ask to see personal liquidity all the time so they can feel comfortable with the payments being able to be made for 9 months.

We’ve been visiting Maui since 2001 and although we’ve made several offers over the past years (mostly in Kihei), we don’t currently own in Maui.

What made you interested in investing in this type of deal?

What made you interested in investing in this type of deal?

One of them has never once made the pref in almost 5 years, yet in every quarterly update they are singing their own praises about how well everything is going.

If you are buying with financing, and not cash, you will need to have anywhere between 3-6 months reserves leftover in order to meet lending requirements.