Has anyone use Launch Financial Group for DSCR on STR?

Question

Looking for some feedback if anyone has used Launch Financial Group for their DSCR loan on STR. I've recieved many quotes and preapprovals and they came back with the most competitive rate and terms for what we are looking to do. I haven't, however, found much info on them as an institution so looking here. Thanks in advance! Here is their link.

https://www.launchfg.com/

Zach Edelman · Answer

I have not heard of them, but I would make sure, especially since they seem to be a new player in the space, to ask them the questions that are outlined on the "Best Questions to ask your DSCR lender for STRs" post on this forum: https://www.biggerpockets.com/...

Sylvie Kuzminski · Answer

Hi All. I buy MF via DSCR loans and I have done 2 deals through Launch Financial so far.

First of all- Launch Financial is NOT a direct lender. They take a comission and are a middle man with the actual lenders. My experience has been less than stellar and my real estate agent is also not a big fan. My main issue is that they misrepresent themselves as a direct lender. When I first spoke with them and asked if they are a lender, the response is "we do make loans," or something along those lines, but it was not disclosed that they are in actuality a broker. Issue two is that because it is essentially a game of telephone, there are delays and many misunderstandings.

My current deal has been delayed for over 30 days because the Launch rep wasn't aware that you cannot wire money from an offshore account- by federal regulation, the money must season in a US bank account for 30 days. This rep boasts about how they close hundreds of loans, etc etc but didn't know about this regulation. That aside, once my funds had seasoned there was further delay because I got more requests for documentation (that could have been requested during the month that we were twiddling our thumbs and waiting for my funds to season). The rep became extremely rude and verbally abusive on a phone call with myself and my agent.. I'm frankly blown away this this guy has a job.

Anyways- the good: For an entry-level investor, you will not have many other options. Most lenders want to see experience. Launch is one of the few who work with newbies. Even if you attempt to contact the lender directly, they will not speak to you- you will be redirected to Launch. So if you want to cut out that commission - sorry, hasn't worked. They do not set the rates or terms- this is obv the lender. In general, the minimum loans I've seen are 100k (individual properties can be lower if you are buying multiples from the same owner but the loan still must total 100k-ish). Down payments are 20-25% (I think I've seen them advertise 15% at some point- but these are for large loans for $1m). Interest rates are comprable to market.

Sylvie Kuzminski · Answer

I believe this. They don't really know what they are doing. Also, for DSCR, they do not use the actual rental income on tenant-occupied houses. They pull their own numbers out of thin air. So while the actual ratio might be 1.8 or 2, they will come back with 1.0- no justification, no comps to show.

Jennifer L. · Answer

These guys are a joke. My customer went to them 1 month ago with property criteria and was told they could do the loan no problem; only to be told days before closing the property does not qualify. Would not trust them! Run!

Nick Belsky · Answer

@Ted Freemyer

Not too bad of terms, but others are similar.  All depends on a lot of things.

No experience with or have ever heard of that lender, but I will look into them as well.  Lots of STRs deals going on right now.

Cheers!

My-Anh Tran · Answer

Hello Ted - I’m receiving similar offer from Launch Financial Group and having the same question. Did you decide to go with Launch and if so, would you mind sharing your experience? Thank you!

Roque Miranda · Answer

Hi, good feed back, I was just talking to JOEL from Launch Financial, for some small deals in Montgomery AL. we want to start doing.

Anyone that you guys can recommend for private lending for this area?

Also, what you guys think about Montgomery, i have been doing some research and so for I like what I see. THANK YOU ALL!

Nick Belsky · Answer

I inquired with Launch and they are a broker, not a lender.  I was contacted by Mike Grimes, whom confirmed they are a broker.

Cheers!

Ted Freemyer · Answer

Thank's everyone! This is our first look at DSCR as we've gone conventional up to this point. I recived 4 other quotes and all others with similar terms were 8%+. FICO is 780+ and currently have 4 other investment properties including 2 STRs in the same market we are trying to close on in West Virginia.

Has anyone use Launch Financial Group for DSCR on STR?

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