All Forum Posts by: AJ Exner

Hey Tom,

As you can kind of see from the responses, there are still plenty of groups doing these, however Underwriting for them is still pretty tricky and you are going to run into minimum property values as well as minimum loan amount(s).

Most groups want to see properties all worth at least about 100k, but if they are below that and still cash flowing, you might still have a couple of options as long as the total loan amount meets certain thresholds. 

I will say, if you go in the direction of individual mortgages, you might be able to get higher leverages on each property (most blanket loans cut back leverage a bit even if you meet the thresholds) while also providing more flexibility in downstream options to sell/rehab/refinance each property without additional financial implications.

Good luck, if you need any help, would love to connect and talk through options!

Hey Anna,

I can see why it has been tough to acquire financing, but I'm glad you reached out to BP. The biggest thing I'm seeing actually isn't his residency status, but I think you'll have the biggest issue with the value of the properties you are looking at. It can be tricky to find loan programs that will lend on properties below $100k, but I do think I have a program that can lend below $100k, and if you had a 50-50 LLC, you would be good to move forward at 80% LTV.

If you have a project that is more 'BRRR'-centric, there would be a few more options, but regardless I would love to connect and help!

Sent a DM.

Good luck!

Man, unfortunately its a tale as old as time. My gut says you would be best served ordering another appraisal and staying far away from that appraiser. You could provide comps nearby and try to dispute but it can also be a losing battle. I've had clients that we've disputed, got low balled again, and just ordered a new appraisal and got what we expected. Hate that it happens, but it definitely can.

Might need to calculate what your time is worth and deciding next steps from there.

Good luck!
 

We are seeing a lot of movement downward within our firm and with our clients. Obviously based on your FICO, but seeing 6s pretty consistently with some programs with qualifying FICO/values.

You could refinance at less leverage, which should lower your rate and lower your total loan amount which would, in turn, lower your monthly payment and cash flow a little better.

Question just becomes a 'cash now vs. cash later' situation.

Hey Darian,

There are a few, how many flips/properties have you worked on in the last couple of years? Will likely dictate the leverage you would get with those groups.

Hey Elias,

They do exist, but often times (as the other Elias pointed out) the fees will be a flat rate which you feel a little deeper on smaller loans. 

That being said, I do know a few that will do that, so if the property cash flows well and you want to leverage that for a few smaller ones, then I would be happy to point you in the right direction.

Good luck!

 Hey Piper,

Just shot you a DM but there are some good programs down there but the fees are something to be aware of. Often times when you have minimum loan amounts you also have minimum fees that look fine at $200k-$300k, but at $50k those flat fees are a bigger chunk. 

Good luck!

Reid, 

Sent a DM and happy to recommend. As a heads up, without knowing too much, I know my portfolio clients up in OH need lenders that can do loan amounts below 100k, so if you have any of those, make sure to tell them going into it.

Good luck!

Did you purchase it with all cash or with a loan?