I am newlywed and we just bought our first condo (primary residence) in the Boston area. We got a loan from a lender who was a nightmare to deal with, but managed to get what we wanted at 80/15 with 5% down.
Now we want to start buying investment properties. Should we go with the same lender since we have history, or pick someone else? We have great credit. Are we going to be able to get 100% financed for a second mortgage? Average cost of a condo in Boston is $300k. (No way we could buy it for cash). We want to flip, not rent as we have NO experience with property management.
Sorry for jumping around so much, but I am excited about rei! Thanks for your replies!
It is unclear what your plans are. When you say flip do you mean buy and rehab and then resell or do you just want to wholesale. Making almost any sort of offer these days you will need a pre-approval letter from a lender or copy of your bank statement if paying cash showing you can close the deal. $300,000 condo wow that is rich, What is the rent?
If the nightmare was the lenders fault I would find another, however the whole process is a nightmare and may not have even been your lenders fault at all. Why was the dream so bad. It is not a Row Row Row your Boat Gently Down the Stream deal ever. There are water falls and waves and even hurricanes all the time in getting financing. I was approved once to build my dream home all but the final i and t crossed. I went to their office numerous times and saw the book they put together on my deal. One day it was get ready to close next week and the next day I was declined because the neighborhood did not have curbs and gutters. Anyway enough stories and similes. You may want to use a hard money lender if you are getting involved in major rehab. If you are just getting under contract and flipping you might only need a pre-approval letter. Several Hard money lenders offer these on line without too much hassle. LOL on your next venture.
You need to know why your first loan was so hard. What were the issues that the lender had. Was it the property? Was it the amount of money you had in reserves? Did you have a newbie for a loan officer? Once you know that then you can decide if you want to choose another lender. Just because that lender already has your documentation is not really a big deal. We have done loans from start to finish in under 7 days.
As far as going forward in investing, you may want to go slow to start. Maybe buy a hud home and do a re hab loan when you do the purchase. Find a lender that will help you buy the property and then do a remodel loan based on the new appraised value.
It is like a construction loan except you will have already owned the property.
Well if your lender now is offering to give you 100% financing for the second home then you should stick with them since they know your financial situation and hopefully wont make the second time around such a bad experience for whatever reason. $300k for a Condo in Boston is a very good deal. Best of Luck to you.
Flip? arer you flipping at the table or are you doing a rehab. If youre flipping it at the table just get the contract a down payment and dont even worry about financing. Do a dry closing on your purchase of the condo and 5 minutes later have the title closer close on the sale to your buyer…checks get made out to the original seller…you pay the transfer taxes, and everyone goes home happy. A walk in the park…