Advice on hard money loan duplex purchase

[Kevin Rock]

I bought my first duplex using a hard money loan. Does anyone have any advice on the best way to shop for a mortgage to pay off the hard money. I know I may need to start securing that first in the future, but I am here now. Also interested in DSCR Loans.

[Erik Estrada]

Quote from @Kevin Rock:

I bought my first duplex using a hard money loan. Does anyone have any advice on the best way to shop for a mortgage to pay off the hard money. I know I may need to start securing that first in the future, but I am here now. Also interested in DSCR Loans.

 Hi Kevin, 

I would recommend looking at reviews, online presence, and responsivness . Don't fall for the term sheet. Look for quality lenders that actually close deals. 

[Ko Kashiwagi]

Is it under an LLC? Conventional is an option but conventional have longer seasoning requirements and won't allow LLC vesting. DSCR would be a good option and it would be based on the rental income rather than personal. Make sure to check reviews and that you clear the seasoning requirement

[Kevin Rock]

Quote from @Erik Estrada:

Quote from @Kevin Rock:

I bought my first duplex using a hard money loan. Does anyone have any advice on the best way to shop for a mortgage to pay off the hard money. I know I may need to start securing that first in the future, but I am here now. Also interested in DSCR Loans.

 Hi Kevin, 

I would recommend looking at reviews, online presence, and responsivness . Don't fall for the term sheet. Look for quality lenders that actually close deals. 

 Erik thanks for that advice. 

[Kevin Rock]

Quote from @Ko Kashiwagi:

Is it under an LLC? Conventional is an option but conventional have longer seasoning requirements and won't allow LLC vesting. DSCR would be a good option and it would be based on the rental income rather than personal. Make sure to check reviews and that you clear the seasoning requirement

Ko, I closed with the hard money lender in my personal name. But I definitely intend to move it to my LLC. Not sure if I should move it first or refinance first.

[Conor Deasy]

Hi @Kevin Rock 
Thanks for your post. Using an LLC is very easy and should be seamless with a DSCR refi loan. Highly recommend DSCR in refinancing from a hard money loan.

[Robin Simon]

Quote from @Kevin Rock:

I bought my first duplex using a hard money loan. Does anyone have any advice on the best way to shop for a mortgage to pay off the hard money. I know I may need to start securing that first in the future, but I am here now. Also interested in DSCR Loans.

 Are you doing large scale renovations for the property - or did you just use Hard Money for a quick close?

[Mark Munson]

Hi @Kevin Rock

Use the Find a Lender search on BiggerPockets, then call each one and get a term sheet. If they give you a soft quote, ask for something formal on their letterhead. Then compare a handful and make your decision. Just make sure they lock your rate upon pulling your credit, if they float the rate then go elsewhere, as that opens the door for a bait and switch. You can refinance into the LLC name at closing, no need to move it prior. Lastly, it will be important to each lender as to when you bought the home. Each lender has different ownership seasoning requirements, so if you have owned it less than 3 months, your choices are limited for cash-out refinances. Feel free to connect if you need more advice and best of luck!

[Kevin Rock]

Quote from @Robin Simon:

Quote from @Kevin Rock:

I bought my first duplex using a hard money loan. Does anyone have any advice on the best way to shop for a mortgage to pay off the hard money. I know I may need to start securing that first in the future, but I am here now. Also interested in DSCR Loans.

 Are you doing large scale renovations for the property - or did you just use Hard Money for a quick close?

 No renovations. Just did a quick close. 

[Kevin Rock]

Quote from @Mark Munson:

Hi @Kevin Rock

Use the Find a Lender search on BiggerPockets, then call each one and get a term sheet. If they give you a soft quote, ask for something formal on their letterhead. Then compare a handful and make your decision. Just make sure they lock your rate upon pulling your credit, if they float the rate then go elsewhere, as that opens the door for a bait and switch. You can refinance into the LLC name at closing, no need to move it prior. Lastly, it will be important to each lender as to when you bought the home. Each lender has different ownership seasoning requirements, so if you have owned it less than 3 months, your choices are limited for cash-out refinances. Feel free to connect if you need more advice and best of luck!

 Mark, 

Thanks so much. That was great information.