All Forum Posts by: AJ Exner

Hey Natasha,

It is a great place to start, plenty of inventory whether its for flipping, BRRR-ing, or holding at affordable prices while still having decent rents (with or without section 8)

With that, it is a pretty competitive market. I would make sure you have a good team ready to go and be ready to pounce whenever the opportunity presents itself.

From the lenders perspective, it can be kind of tricky because there are plenty of properties that cash flow well, but even fully-rehabbed they are less than 100k, which make them difficult to lend on. I am aware of a few options, but you would need to be aware before you get in too far to level with expectations.

Good luck!

Hey Jake,

You'll definitely have some options with DSCR lenders, but you'll need to be really sure that the lender you use is okay with underwriting STR income as well as with the ADU as a mid-term as they are kind of tricky.

With DSCR loans, your credit score is going to be a big determinate to where you will lend. If you are just doing a lower leverage (compared to a full 75% cash out) then it will save you on the rate as well.

Happy to connect and talk through some options, but it would certainly be feasible to Quit Claim your property into your LLC and do the HELOC from there, but it is up to you.

Good luck!

Hey Dan, 

Would recommend looking into lenders with optimal rehab financing (BR...) and then maybe a different one for the -RR part. Especially up in MI, there can be groups that operate differently based on what parts of Michigan compared to others.

Happy to connect to discuss more if you have some time.

Good luck!

Hey Joel,

If you are tight on PITI, then I usually recommend looking into an interest only loan, maybe on a 5-10 year IO plan, to lower your payment and see if you can squeeze it in.

Plus, rates are starting to dip a little bit, so it makes it a little more doable, especially if you just do a rate and term refinance to help keep your rate lower.

It depends on the program, the two that I am most familiar with will do 100/100 at 70% ARV but will underwrite pretty heavily and will treat it almost along the lines of a non-QM lenders and might even underwrite the builder/GC. Plus, they are picky on what regions that work in, which is another layer to look into.

The second group, with the right experience, does 10.5%-11.5% Interest only for 90%, and if the values come back in their valuation, will do a second on the down payment at about 17% IO so it balances out at 100% LTC. 

Its pricey in both time and money, which is why I usually express my hesitation to my clients with these programs because many people are willing, but are not able.

I know of 3, 2 that I work with the most for my clients, but what I have found is the inherent issues that come with them. 

There tend to be two big issues with 100/100 lenders that I have seen, the first is working with/being a borrower that is okay with the heavier lift that these types of lenders require. For a group like this, even with experienced investors, you have to prove that you have that experience which can take some time, and on top of that they tend to need a certain experience threshold within a certain period of time (usually 3-5 years). Those factors, plus the work needed to underwrite something like that, tend to make them trickier than say, a 90%/100% lender.

The second thing is ensuring that the values that they are operating under will work with 100% financing. Most 100% lenders will lend at 100% UP TO 70% ARV, which is tough to secure. Not only are those deals tricky, but you also need an appraiser to agree with the values needed to make a deal work, which, lets be honest, can be a bit of a crap shoot.

I know of a few doing it, but preparing yourself for the work of getting it is usually tricky.

Otherwise, **Following** to see if there are any others out there that I don't know

Hey Norma,

Have you done some rehab to it? What kind of leverage are you needing?

Hey Michelle,

Are you looking at 75% ltv on this loan or something a different? And are you hoping for a reduced PPP? You are right, there is some issues there with PPP in PA, but I do have groups with the credentials to have it. 

If you do go with them, you’ll have pretty competitive rates I would assume. 

Let me know if I can help, have a few different programs that could be helpful. 

Thank you,

Hey Wil,

A lot of information to sift through, but honestly I think your toughest element is the 'at or around 8%' right now. Yes, your standard mortgage rates are dropping, but most of your true commercial lending options are always going to be slow to react so I'm still seeing commercial rates higher than that.

Sent over a DM, but would love to talk through some options if you are interested.
Good luck!

Hey @Karolina Powell

When you are doing a handful like this, and to be clear I am 1,000% biased, but it might be good to utilize a broker. A good broker can communicate between multiple lenders and often times has established relationships within the C-suite levels of multiple lenders that they can make calls on your behalf to "shake some trees" and get things processed not just in a timely manner, but in a manner that is on time based on what you are trying to do.

Unfortunately it is not uncommon per se, but knowing where these hang-ups tend to happen and how to time everything based on lenders timelines and processes is where it can be helpful to have 'go to' lenders that you are familiar with, and they are familiar with you to help get things done.

Good luck though, happy to help where/if I can.