Need help with Lending Knowledge

[Fallon Gilbert]

Hey all!

Everyone here has been super helpful with answering any questions I have and I appreciate you all for that. I do have another question which pertains to lending that I'm not sure the best route to take.

The area I'm looking to invest in has low priced SFH and MFH (low like ~$60k or less) and I would like to put them in an LLC. Since the purchase prices are so low, I don't necessarily need 20/30 year mortgages on them but I'd also rather not lay out $60k cash that way I can do more deals. I've heard of portfolio loans but I'm unsure of how that works and same DSCR loans.

Basically, I'm looking for a loan (or lender) that will lend to an LLC and I don't know what they base it on. Would I be able to show the calculator for previous deals plus the new deal to see the CoC return?

Any advice appreciated!

[Robin Simon]

Quote from @Fallon Gilbert:

Hey all!

Everyone here has been super helpful with answering any questions I have and I appreciate you all for that. I do have another question which pertains to lending that I'm not sure the best route to take.

The area I'm looking to invest in has low priced SFH and MFH (low like ~$60k or less) and I would like to put them in an LLC. Since the purchase prices are so low, I don't necessarily need 20/30 year mortgages on them but I'd also rather not lay out $60k cash that way I can do more deals. I've heard of portfolio loans but I'm unsure of how that works and same DSCR loans.

Basically, I'm looking for a loan (or lender) that will lend to an LLC and I don't know what they base it on. Would I be able to show the calculator for previous deals plus the new deal to see the CoC return?

Any advice appreciated!

Your best bet to qualify for DSCR is going to be able to bundle at least 3 at once into one portfolio. If you can do that, the economics can work for the DSCR lender and the minimum property values can be pretty low