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All Forum Posts by: AJ Exner

AJ Exner has started 1 posts and replied 454 times.

Post: Hard Money Recommendations?

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

Hey Kevin,

Is this your first time rehabbing in IL, and is it in/around Chicago? You might run into some issues if this is your first foray into that area as most lenders are going to either cut leverage, if they lend there at all.

You will inevitably find someone who can help you, just make sure to vet them as much as possible going into the deal to ensure that you don't get down the road and something that could have been avoided keeps the deal from happening.

Happy to help if I can

Good luck!

Post: Flip won’t sell!

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

Hey Jesse,

There are a few programs that you can refinance into a bridge loan (1-2 year term) with no prepayment penalty where you can payoff the HML and get some more time to sell/unload.

Just shot you a DM, would love to help you walk through the process if you would like.

Good luck!

Post: Private Money or DSCR Lenders

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

For sure, plenty of options up there.

Just keep an eye on loan minimums up there because depending on what part of STL you're in it might come in below. 

Post: Guidance on refinancing from personal mortgage to an LLC

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235
Quote from @Charles Wade:

Greetings and thank you in advance for the assistance and advise

I purchased my first STR using a conventional loan and in my name two years ago. The loan was 90% LTV with PMI. The property is now a STR for a year and it has already been transferred into a land trust owned by my LLC.

What I am looking to do now is to refinance the mortgage and remove the PMI as well as have the loan under the LLC and not me personally

1) Is this possible?
2) How?

3) Who?

Hey Charles,

I would certainly lean DSCR as well, as mentioned above. The biggest factor that you need to take into consideration is that wherever you go for your refinance, that they are comfortable with two elements of your deal; the trust inside the LLC and the fact that it is a STR.

The land trust shouldn't be too big of an issue because it is owned by an LLC, but you definitely want to ensure ahead of time with the lender that they are okay with that kind of entity structure. The last thing you want to do is get an appraisal, move into final underwriting after weeks of work, only to get denied because of how things are structured.

Secondly, and almost more importantly, you want to make sure your lender is comfortable with it being a STR. The biggest part of a Debt-Service Credit Ratio mortgage is that they want to calculate the income of the property vs. the debt on the property incurred and there are a decent amount of lenders that are not comfortable underwriting the income of a property as a short-term rental. There are plenty that do, especially in showing a year of income production, but you want to absolutely make sure before you get in too far.

I'm happy to give some recommendations if you would like, shot a DM and would love to connect.

Good luck! 

Post: 100% vacant multifamily rehab

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

Hey Rebecca,

How many units are they? Shouldn't be too much of an issue to find funding if they are 2-4 units. 5-8 unit rehab deals are trickier, but anything running at or above 10 units definitely becomes trickier, especially in 'undesirable' areas and depending on the specifics of the financials.

Is this their first time taking on a project like this as well?

Post: BRRRR - Small Towns?

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

Hey Drew,

You're right, a lot of opportunities. The biggest thing is finding lenders/programs that are good working with those lower amounts and understand the opportunities that are there.

I have a lot of clients doing it right now, and depending on that number I feel like those rent numbers are even pretty low. A lot of mid-sized towns offering up great, stabilized rents that produce great cash flows, even at higher rates. 

Post: Refinancing an investment property

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235
Quote from @Ben Gradert:

Hi, I'm in the process of purchasing a home for all cash (100K), 80K rehab, and then a post ARV of 315K. Is there any way to cash out refinance a home where you can leave something less than 20% in the home?

Thank you!


Hey Ben,

Sounds like you are needing to refinance to be able to purchase this new deal. Is there a way to refinance at 'normal' max (75%) and find a purchase/rehab lender that is more flexible with reserve requirements or is better at creative financing (ie seller financing, etc.) that could help you make that deal happen without over leveraging your other property?

Post: Refinancing step in BRRRR

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

@Jerry Zigounakis

The high rate environment is going to make it tougher, but it also makes it a unique time for investors. It hinders home buyers and will begin to drive prices down a bit as well.

What I've found is that it hinders cash flow right now, but I'm excited for the long-term. Personally, I am willing to sacrifice the short-term cash flow for long term gains.

Right now I have a property that I'm paying 7.99% on that is cash flowing just a little bit. But here in the next year or so, I will refinance it, make a little more every month, but draw out that cash to find another deal or two. Sure, its not the 3-4% from a few years ago, but it keeps enough people in the back seat to make a few more deals available that might not have been.

If it "works" now, it will be awesome later. It just might not be the crazy deal it was a few years ago.

Post: Down payments in Texas?

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

That sounds like a lender-specific rule, or potentially a requirement based on minimum DSCR needs (maybe 1.2).

If you have a deal, I would maybe check with a few other groups. Are you going conventional or trying to do DSCR?

Post: Refinance dscr loan

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 470
  • Votes 235

Hey Antoine,

I do know of a few, but you will generally see a bit of a rate added and fee "minimums" that you need to keep an eye on.

Is it for a residential property (1-4 units) or commercial?