All Forum Posts by: AJ Exner

As long as it cash flows and you have a decent credit, should work for most DSCR lenders. Is there a cash flow issue?

Most groups I work with would just ask for a Property Management Contract of some kind and would get that done for you.

Sent a DM, would love to connect and see if we could help.

Good luck!

Hey Sean,

Should have quite a bit of DSCR options at 90 days, or even less. Especially if you have done even a little bit of work to the property.

Just keep good records/Scopes of Work on your rehab as some groups might limit you to a certain percentage over your cost (say 120% of cost basis), but still enough usually to get DP back.

Happy to connect to talk through it if you are interested.

Good luck!

@Chris Seveney they have a VERY aggressive buy-down but generally keep it close to their chest. I had heard the same from some colleagues that the rate is possible on paper but you are definitely paying a lot and working hard to get it there. 

Hey Nick,

Congrats on taking that first step! Is the property there in Madison, or did you track one down elsewhere?

As for your question on Hard Money Loans, yes they will generally cover a portion of the purchase price (say 80-90%) and most will do 100% financing of the rehab based on a reimbursement/inspection schedule

That is usually the toughest part as you get started, most will want to see you do the rehab first, and then do a 'draw' in order to get the funds back. This usually does not include ordering the supplies, so they like to see it completed before the full funds are reimbursed.

Most HMLs for first timers will tweak initial leverage based on FICO and the area you are investing in. If its a good area, a good deal, and your FICO is good, then that will put you in the best position for most groups.

I hope that makes sense, happy to connect and discuss further.

Good luck!

I think a lot of gotten burned out there from the last few Hurricane seasons and with some revamped FEMA replacement guidelines it really has impacted the coastline, i.e. all of FL.

Combo that with insurance difficulties out there, I think there is a LOT of reconsideration from capital markets that are going to impact it. The Kiavi decision could really shake up things up, either as a precedence or to open the door to new lenders to take their place out. 

For the groups that do stay, it wouldn't surprise me to see leverage-based changes to their lending policies specifically for FL properties and maybe capping Loan-to-ARV?

*Insert Shrug Emoji*

Hey Emmanuel

Have you considered treating this as a modified-BRRR strategy? Attack it with a small rehab-bridge loan (coat of paint, fix some drywall, clean up landscaping/curb-appeal, etc.) to increase leverage and reduce your down payment.

Then refinance it after a couple of months at the true "ARV" where you should be in position to at least rate and term at 80%. It could ensure that you've minimize your cost-basis while getting what sounds like a good property that should give you some good equity for a long time.

That seasoning period should suffice in letting it 'appreciate' to its actual value and put you in a great position.

'Best' terms will vary pretty considerably based on your experience, FICO, and the numbers themselves. Is this your first flip or have you done a few of these already?

Are you doing it in cash or are you using a lender to help with the purchase/renovation? If you are using financing, ask your lender if they have a template they prefer.

Some groups don't care, but some can be very particular, so I would ask them if they have one.

Good luck,

We were taken aback as well, but they are a premier lender in the DSCR space and have maintained that. Plus, with their rewording, they have even somewhat reinforced the program as the needs have continued to develop.

Happy to provide more information if you are interested and would like to connect!

Yeah, they had some wording during 2024 that made it "non"-recourse (my wording, not theirs) but had some limitations even with it being eligible through an SDIRA. 

That being said, they shored up the language and have made it a great SDIRA non-recourse option that is top of the line at maximizing that kind of leverage.

And we definitely agree, I wish I had more clients that knew of the kind of benefits something like this provides!