All Forum Posts by: AJ Exner

Hey Charlie, 

Its good that you are looking into the numbers ahead of time, especially in calculating what your payments are going to look like and what kind of rates you might be looking at.

I think that estimating a 9% puts you in a good place, hopefully by the refinance it might even be lower. My clients over in NC are seeing a cash flow issue based on the full DSCR in the area (rate + taxes + insurance), so I would make sure that the numbers you are seeing are correct.

The only kicker might be some of the closing costs/fees. Are you planning on using Hard/Private financing? You might need even less money at purchase then you think.

Hey PJ,

There are still a few great lenders who can help like something like this, but you might run into some loan minimums with groups who can maximize leverage.

How much is the ARV? And how recently did you purchase it? You might also deal with some seasoning issues as well. And I'm assuming that you did some rehab to the property as well?

70% is certainly doable with the right group, and I actually think there are a few that can do 75% if the seasoning is there. 

@Shuvrajit Mukherjee

There are a few lenders that can close a 30 year fixed in your personal name. There is obviously the liability risk of doing that, but there are still some great options for either bridge or long term debt in your personal name with non-conventional sources. 

@Holly Barrett

How much equity do you currently have in the property? I know that there are a few lenders looking into this in the short term, but there needs to be enough equity in it for them to lend to to make it happen. 

Spoke to quite a few investors at BPCon that feel the same way though, almost trapped by how good the rates are. 

Hey @Sol Naim

Do you know if the condo could be acquired with conventional lending? If it is, and is classified as 'Warrantable' then you might have significantly more options compared to if it is 'non-Warrantable'. If it is non-warrantable, then your options are reduced, but certainly not obsolete. 

Also, with the numbers you provided, I'm seeing that it doesn't DSCR at 450k which will certainly hinder what you would be able to get out. With that monthly lease, it looks like it won't DSCR, or cash flow, until you get down to around 40% cash out (~$344k)

Having the equity that you do will certainly help, but I would be cautious trying to get more. With rates where they are, it will be tough to cash flow on a single family condo with long term leases. 

Hey @Nick Garcia, are you looking to do conventional or Hard/Private money? Do you have renters in there already or is it vacant?

I have a client that is doing some great work in STL and, especially if you are doing any rehab, its good to have a few lenders who don't have minimum loan amounts and are okay working in the area. 

Hey @Milissa Kernahan,

There are definitely a few lenders doing long term financing there, hopefully you were able to find them.

There are also some lenders doing cash out bridge loans that, if you are in process of repairing your credit or are thinking rates will stabilize/go down, it is a good way to get money out now and continue to build your portfolio in a tough market. Those lenders doing that may also have some more lenient requirements allowing you to get out what you need.

Hey Shakeh,

My clients that are doing those kinds of transactions, I normally recommend doing it as a portfolio. As a portfolio, you will still have minimum property value requirements, but there is a bit more flexibility based on what the total loan amount would be. 

Hello Melissa,

Second what @Magnus Wikström said, I have some clients that use HMC for below 100k loans, but they can be a bit pricey on fees/origination (but some creative intricacies to help get deals done). What in particular are you looking for? I'm guessing it is a rehab loan, or are you needing a DSCR program below 100k?

ROC Capital is a good group for deals below 100k, as they also have a Snap Draw process that is pretty solid. 

Agree with Robin here, there are certainly options for lower FICO borrowers in the Hard Money space. Or have you considered bringing on a credit partner within the LLC to help with the refinance? At least for the short term?