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All Forum Posts by: AJ Exner

AJ Exner has started 1 posts and replied 504 times.

Post: First time investor looking for lenders

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

Hey Kevin,

I think having a clear understanding of what you are looking for is a great first step. Try not to modify or tweak your buy-box too much on behalf of what fits for the lender, but find lender(s) that can come alongside what you are doing and help make it happen quickly and efficiently.

If you are investing in OH, I would be conscious of minimum loan amounts and how they feel about 'rural' areas. OH can get rural-ish pretty fast, so have a clear picture of what you are looking for, and maybe work with a reputable broker who can help manage that for you and find the right fit there.

A lot to consider, but do your research, build a good team, and start taking steps. You should find there are a lot of different ways to make it work!

Good luck!

Post: Looking for hard/private money lenders

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267
Quote from @Lucas Vanroboys:
Quote from @AJ Exner:

Hey Lucas,

Not seeing much in regards to LOC offerings these days, but a lower leveraged DSCR loan could be a good fit to draw out that equity. I'm guessing that you have the property rented out currently? And is it 4 units or less?


 It is single-family condo (3 bed, 3 bath) and yes it's fully rented even tho it's technically my primary residence.


So if you went in that direction, the first step would definitely be to establish residence (via utility bill/ID/etc.) somewhere else so that you could leverage Investment Property loans of some kind (DSCR/HML/etc.). Then you should be good to go.

Otherwise, if you were to find a local bank, they might be able to offer up a nice little HELOC of some kind. That is where I had opened one up for myself, was a local bank/CU.

Would be happy to point you where I could on the IP loan side of things if you were interested in going in that direction.

Post: Looking for hard/private money lenders

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

Hey Lucas,

Not seeing much in regards to LOC offerings these days, but a lower leveraged DSCR loan could be a good fit to draw out that equity. I'm guessing that you have the property rented out currently? And is it 4 units or less?

Post: Debt Service Coverage Ratio

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

Hey Ann, 

You'll have good ones all over the board, so nothing too crazy there. I guess my question(s) would be what market are you looking to invest in, what values are your deals going to be around, how many units will you generally aim to have, and what is your ballpark FICO?

All of these things would play a KEY role in which lender would actually be the best. Region is big because most DSCR lenders focus in different areas and might avoid other areas all together. Plus, some might avoid 'rural-ish' markets and they might have property minimums that certain regions just can't offer (see Ohio and Alabama markets)

Most will go up to 4 units with no problem, but if you are going to start looking to do DSCR for properties with 5+ units, then you will certainly run into plenty of DSCR lenders who won't touch it.

And of course, any DSCR lender will wildly differ based on what your FICO is. From leverage that they will give to the rates, whatever your FICO is will dictate a lot of the innerworkings of a loan. On top of that, some DSCR lenders might charge more in fees and points, while providing quality service, so finding that sweet spot is key.

Long winded answer to an open-ended question, but (biased opinion) that is where a broker could come into play. Good DSCR brokers know the ins-and-outs of the DSCR programs and can get you the best rates/terms.

Good luck in your hunt! Happy to connect and help if I can

Post: Looking to obtain a DSCR Loan

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

Hey Eric,

Just shot you a DM, and I'm sorry you've had some issues with this. I guess my primary question would be, in a perfect world, do you want to sell it or keep it? I think you have some options either way, but they would vary pretty considerably based on which way you wanted to go.

Good luck!

Post: Moving Forward. Grow my portfolio.

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

Hey Jesse,

Yes, DSCR loan is definitely the way to go, especially to actually grow your portfolio. They will not be concerned by your W2, and will be driven by that rental income.

They will also be credit-informed, so it would be good to have a good grasp on your credit as that will impact the rate and how much that monthly cash-flow will be.

Happy to connect and see how we might be able to help. Keep an eye on values, rates, and even if your property might be classified as 'rural' on an appraisal. This could be a deal-breaker with some programs and could slow you down a bit in the process. There are lenders that will work with 'rural properties, you just need to know what to do and where to go.

Good luck!

Post: Hard money lenders

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

What part of IL? A lot of lenders have policies to their lending in different parts of IL and might even say they will lend to most of IL except Chicago.

Post: Is it impossible to cash out refi a TX rental property if you live out of state?

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

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!

Post: No seasoning cash out refinancing

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

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!

Post: Conventus left hanging at closing table

AJ Exner
Posted
  • Lender
  • Springfield, MO
  • Posts 522
  • Votes 267

@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.