All Forum Posts by: AJ Exner

Non-recourse SDIRA notes are really tricky to find, and even some of the programs I've seen that "offer" it still struggle with the legal-ese that backs it up.

I do know of a group that just revamped their language and would do purchases at 70% leverage. Just shot a DM, would love to connect and help!

Quote from @Axel Scaggs:

Quote from @Patrick Roberts:

Couple questions -

What's the rate and remaining life of the $130k first position?

For the closing costs, how much of that was escrows? If you're currently escrowing with the existing first lien, you would be refunded the balance of that escrow account about a month or so after closing on the new loan.

 The original loan rate was high, at 8.75%, new rate is 7.5%. House was purchased in 2017, so restarting it has certainly affected things in that regard. I attached images of the closing costs. 

$10k in Origination is tough, ~3.5 points + lender fee sounds like did the heavy lifting, plus title/prop tax in TX can add up quickly.

As for the numbers, I think its easier to regret not selling in the short term, but the hope is for long-term gains/appreciation. If they can cover your mortgage and you can slowly payoff a 350k property over time, that should give you a good equity position in no time.

Plus, if rates get better that will always help. 30k-40k + Cash-out proceeds should put you in a great spot to snatch up a few of those 30-50k properties to fix up and scale.

I wouldn't be upset, sounds like you are in a good spot.

Hey Charles,

I actually have a few programs that specialize with that kind of project, do you want want any initial money out as well as the rehab? Just shot a DM and would love to connect

Thank you,

Nissan,

Yes, there are a few and being up front and submitting them that way should help keep you from wasting your time.

Just sent a DM, as long as the numbers work, you shouldn't have an issue.

Good luck!

Juliette,

Seeing rates right around 7% right now pretty consistently, even on investment/DSCR notes. I guess it just depends on what you are looking to do.

My two cents, if it's even worth that, is that we'll see more of a slow burn and it's hard to imagine rates really plummeting.

My recommendation to my clients is to not step over dollars for dimes. If you have a good opportunity in front of you and it can put you in a good position going into the year, I wouldn't hesitate too long.

Good luck! Happy to connect and help where/if I can. 

Elias,

My recommendation is using a lender that utilizes the value of the lot to start a rehab escrow that can help you to finance the new build. Given that you've done it already you shouldn't have too much problem getting the financing together.

You just want to make sure to have your soft costs in place when you apply. There are plenty of groups that will help if you don't, but having the project be shovel ready will ensure that you get the type of financing you need.

Good luck! Happy to connect and help if you need it. 

John,

So it can still be in a 'rural' area, but it really comes down to what the appraisal itself says. I've had deals in small towns that were able to get full leverage on a refinance because the appraiser said it was "suburban" instead of "rural" on the appraisal.

Otherwise, there are a few groups that would still lend to about 65% of a fully leased rural property, but it would be very difficult to get more than that.

Good luck! Happy to help if I can

Very few options utilizing IRAs from the non-recourse side of things. I do know of a group doing it with reduced leverage (70%) so as long as you are comfortable with that there is a good option with qualifying credit and everything.

It would still have to follow general DSCR guidelines for values and amounts, but it's certainly doable.

Would love to connect and help if I could.

Good luck! 

There are a few that I know but usually comes with experience qualifications, FICO/reserve requirements, specific lending regions, or all the above. I would think if the numbers line up and you have some experience that there should be some options available.

Plenty of options available for you!

Play around with the Find a Lender option here on BP, or reach out to any number of people who I'm sure will respond to this post

https://www.biggerpockets.com/business/finder/lenders

Your partners licensure should help overcome any hurdles, just make sure they are Non-Dutch and make sure it's not too rural, and you should be great.

Would love to connect and help either on the rehab or refi when the time comes!

Good luck!