Seller won't accept offer with EasyStreetCapital. Why and what are the options?

[Yanina Panfilenka]

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

[Nate Herndon]

Hi @Yanina Panfilenka - that is too bad that they aren't accepting! That's a tough one to overcome though if they had an experience that did not meet their personal expectations. Sometimes there are issues with appraisal, title, insurance, or underwriting - but it all typically gets blamed 'on the lender'. I have worked with EasyStreet in the past and have closed loans for my clients using their program.

At this time, I am currently using a different program for short-term rental purchases and it has been performing really well this year. I think I've had 8-10 short-term rental and long-term rental deals close with this other program in the past two months alone.

If you are in need of a new prequalification letter and a different look at the deal from another program, I would be happy to help before we hit the weekend. I will send you a quick message.

[Erik Estrada]

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

[Russell Brazil]

Large non-refundable EMD will often overcome this issue.

[Yanina Panfilenka]

Quote from @Russell Brazil:

Large non-refundable EMD will often overcome this issue.

 Thanks, Russell. I guess, all the trust issues and emotional instability could be settled with extra deal protection. 
I'm not sure if that helps much having a financing contingency.

[Yanina Panfilenka]

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

[Theresa Harris]

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

[Yanina Panfilenka]

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

[Theresa Harris]

Quote from @Yanina Panfilenka:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

 I'm still a bit surprised.  In any of the sales I've been involved with (I'm in Canada), neither side ever knows where the financing is coming from. No where in the offer do we ever write down which lender we are using.

[Brittany Minocchi]

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

 I'm still a bit surprised.  In any of the sales I've been involved with (I'm in Canada), neither side ever knows where the financing is coming from. No where in the offer do we ever write down which lender we are using.

 The name of the lender is usually shown on the pre-approval letter. In my case as a broker, the name of my company would show - not the name of the lender I'm brokering to. That offers my buyers a little bit of protection in instances like this. 

[Yanina Panfilenka]

Quote from @Brittany Minocchi:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

 I'm still a bit surprised.  In any of the sales I've been involved with (I'm in Canada), neither side ever knows where the financing is coming from. No where in the offer do we ever write down which lender we are using.

 The name of the lender is usually shown on the pre-approval letter. In my case as a broker, the name of my company would show - not the name of the lender I'm brokering to. That offers my buyers a little bit of protection in instances like this. 

 In GA they name the lender with the contact person and details of the loan. In WA we just put it the downpayment amount and type of the loan.

[Jay Hurst]

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

Lots of DSCR lender's out there that have better products then Easy Street, so why not switch lenders? Either the seller or listing agent has likely been burned by Easy Street.

[Jay Hinrichs]

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

 I'm still a bit surprised.  In any of the sales I've been involved with (I'm in Canada), neither side ever knows where the financing is coming from. No where in the offer do we ever write down which lender we are using.

Theresa that is because your banks make the loans directly.. in the states we have a million and one  Brokers  who are not direct lenders.. very very different in CA compared to US..

[Jay Hinrichs]

Quote from @Yanina Panfilenka:

Quote from @Brittany Minocchi:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Theresa Harris:

Quote from @Yanina Panfilenka:

Quote from @Erik Estrada:

Quote from @Yanina Panfilenka:

Hi,
I'm trying to invest into short-term rental in Savannah, GA. And now the offer is not accepted because of the personal issues of the seller with EasyStreetCapital.
How was your experience with them? Why would anyone decide against the lender? What are good lender for DSCR loan?

 Interesting! I wonder why. Easy Street is good and they get the job done, but I will honestly say they can make it a very tedious and long process compared to other lenders. I don't know if that has changed now since I have not sent them a file in a year now. But I would definitely get your loan officer to contact the seller's agent to go over the loan process with them. I would also work with a lender that can get the job done quickly as it is common in this space for lenders to take forever to close. 

 it's so sad the lenders can't close the deals on time. Giving more work for everyone.At the moment, I don't want to make another offer on the property, looks like the sellers won't negotiate on anything including the roof that needs to be changed. Feels like no deal at the moment.

 If they aren't willing to negotiate on other things, then walk away.  You can put in another offer a month down the road it if is still for sale.

 Yeap, that's the plan. Or wait for a better deal coming along.

 I'm still a bit surprised.  In any of the sales I've been involved with (I'm in Canada), neither side ever knows where the financing is coming from. No where in the offer do we ever write down which lender we are using.

 The name of the lender is usually shown on the pre-approval letter. In my case as a broker, the name of my company would show - not the name of the lender I'm brokering to. That offers my buyers a little bit of protection in instances like this. 

 In GA they name the lender with the contact person and details of the loan. In WA we just put it the downpayment amount and type of the loan.

its common though on the West coast for the listing agents to Ask for pre approval which will then list the lender.. I dont know any agent who would not insist on this.

I know as a Seller on my new construction I will not sell to anyone using Rocket mortgage and am careful with well fargo. Rocket is ridiculous for new builds so I would be like your seller I would reject the offer if they insisted on using Rocket

[V.G Jason]

Please don't tell me you're the goofball buying the E harris str one. And doing this to "avoid" taxes.

Either ways, are you buying DSCR to show net positive over 1 or because you want to close in an LLC? Just get a conventional lender if it's the former one, better rates too. If it's the latter, then yeah you're going to have to shop lenders.

[Yanina Panfilenka]

Quote from @V.G Jason:

Please don't tell me you're the goofball buying the E harris str one. And doing this to "avoid" taxes.

Either ways, are you buying DSCR to show net positive over 1 or because you want to close in an LLC? Just get a conventional lender if it's the former one, better rates too. If it's the latter, then yeah you're going to have to shop lenders.

'Avoid' taxes? Sounds illegal.
 I need a DSCR loan to purchase house(without LLC) to make an AirBnB as can't get another conventional loan because of the limit of debt to income ratio and because you can't use the income from short-term rentals as the income up until they are at least one year in service. And I added 2 BNBs in the fall of last year. 
But of course, conventional lender will give better rate.

[Jay Hurst]

Quote from @Yanina Panfilenka:

Quote from @V.G Jason:

Please don't tell me you're the goofball buying the E harris str one. And doing this to "avoid" taxes.

Either ways, are you buying DSCR to show net positive over 1 or because you want to close in an LLC? Just get a conventional lender if it's the former one, better rates too. If it's the latter, then yeah you're going to have to shop lenders.

'Avoid' taxes? Sounds illegal.
 I need a DSCR loan to purchase house(without LLC) to make an AirBnB as can't get another conventional loan because of the limit of debt to income ratio and because you can't use the income from short-term rentals as the income up until they are at least one year in service. And I added 2 BNBs in the fall of last year. 
But of course, conventional lender will give better rate.

 You cannot use "short term rental income" to qualify on the subject property BUT you can use 75% of the appraiser's rent valuation on the 1007 market rent schedule. That might not be enough but you can use that.

[Simmy Ahluwalia]

@Yanina Panfilenka - that's unfortunate with ESC. I've closed several STR loans with them. If you are seeking a new lender/quote, we are happy to review your deal. We are also ATL based.

Also, is your DTI is high, then you have to Close in an LLC, you can't Close in your personal name.

[Yanina Panfilenka]

Quote from @Simmy Ahluwalia:

@Yanina Panfilenka - that's unfortunate with ESC. I've closed several STR loans with them. If you are seeking a new lender/quote, we are happy to review your deal. We are also ATL based.

Also, is your DTI is high, then you have to Close in an LLC, you can't Close in your personal name.

 Thank you, Simmy.
The point to take a DSCR is because of high DTI. Nobody told that they are checking the DTI at all or the fact that they will close only in an LLC. Is it a rule for every lender?