Has anyone used Lending One?

[Mythaniel Mix]

Im Investing in Florida and currently have three properties and i am now running into problems with my debt to income ratio with my lender. I am considering using Lending One and was wondering if anybody has any experience working with them?

[Caleb Jordan]

Originally posted by @Andrew Cheek:

@Caleb Jordan Hello,

I have one duplex and am considering researching HML for the purpose of BRRRR, maybe fix and flip, or buy an auction property, fix and rent. My basic understanding is that if the interest rate allows for the loan payment + mortgage payment to be less than your rent, your are technically in the money.

Underwriting seems tricky and I'm a bit unsure how to build my case to a lender. Could you offer any guidance? Thank you very much.

-Andrew

Hey Andrew, most hard money lenders will frown on putting a tenant in a property with fix n flip loan on it. 

But some hard money lenders have special fix and hold loans, but once property is fixed up there is usually some sort of restructuring to convert it buy and hold loan. 

Other hard money lenders can refinance you out of one of their  fix and flip loans into a buy and hold loan. But it is a full blown refinance, so It is new appraisal title work, closing costs etc. 

This is because the way fix n flip loan is underwritten is usually totally different than a buy and hold loan. Fix flip is an ARV appraisal ( called subject to) with rehab funds in play. buy and hold has an "as is" appraisal and cash flow analysis.

On a buy and hold loan HML usually wants to see rents 15% to 25% higher than monthly interest, insurance, taxes. Often these are 2 to 5 year terms interest only payments. They can often just look at market rent if the property is vacant.

They will also look at ltv. On a refinance HML usually wants to see 75% to 60% ltv. HML lenders usually have their own underwriting criteria already established and they can quickly tell you borrower and deal requirements they need.