All Forum Posts by: AJ Exner

Hey Teri,

So the smallest I know is 50k that they would lend, do you have another property that you could bundle it with to get to a loan amount of $75k?

Amby,

You could either Quit Claim it, like @Remington Lyman suggested, or refinance if you are in a position to (don't have a 2020 rate and have some equity in it). The kicker for a lot of folks is giving up a 3%-4% rate to do that which makes Quit Claims a little more effective.

You just want to make sure that the title is done properly to avoid any downstream concerns

Sean,

There are some lenders that are okay with closing in your individual name, and some that will do a rate adder if you do, and some that can only do it in certain states. Connecting with the right one would be a big part of it, on top of finding the right, cash-flowing property of course.

Happy to connect and help if you would like!

Correct, I was referring to DSCR loans as a delayed purchase.
Some of the lenders that I work with treat the rate as they would a straight purchase as long as they fall within their timing, pricing, and regional parameters, which is why I requested some more information.

It really shouldn't, if its a true 'delayed purchase' then from the lender's perspective it should be the same as a purchase. The issue is that you won't get to capitalize on existing equity (ie, getting a 'good deal on it') for being able to maintain some existing capital. 

Just shot you a DM, would love to connect and talk through it to make sure I'm not missing anything.

Hey Catherine,

We classify it as a 'Delayed Purchase' and set it at 80% of purchase price. 

So if there is built in equity in the property, you would be missing out on it because of a presumed prepayment penalty, but its a great way to leverage the bargaining power of cash while still maintaining capital to buy multiples at a time.

Would be happy to help if you would like to take a look at what you would qualify for.

Hey Andrew,

Just shot you a DM, but low-seasoning with properties below 100k is tricky. Happy to connect and help!

I'm sorry, isn't that the premise of DSCR loans? To funnel properties that are hitting your DTI into an LLC for business purpose so that you can keep it separate?

My recommendation is to keep his duplex and refinance others to clear up DTI, how would you recommend?

@Joshua Voigt

Yeah, don't sell a cash-flowing property if you don't have to. DSCR loans don't count against your DTI so keep house-hacking if you would like, but don't 'step over dollars for dimes'.

If you need to take a bit of a hit in the short-term for long-term financial stability (more doors/cash flow/equity) then I would recommend exploring options in that way.

Good luck!

Hey @Jace Perry

What I've found is the best HML tends to be pretty subjective on the deal itself.

For example, the right HML for a heavy rehab in Detroit is likely going to be different than the right HML for a cosmetic rehab out in Greenville. As you start to scale, knowing and understanding the nuances of the deal and the 'boxes' that the lenders tend to operate under is really important for the market that you are wanting to invest in.

For example, I know ES and Conventus will hit you with either shorter terms (6 months) or minimum purchase price amounts that might dictate whether you have to say 'no' to a deal whereas another group might be a better fit. 

I have found that this is why having a good broker in the space can be advantageous, especially before (or if) a PML comes into play. 

Obviously having an individual who will fund whatever deal you want to pursue is going to be WAAAAY better than anything you will find anywhere else. But as @Andrew Syrios states, it is definitely worth it, but it takes time.

I hope that helps, good luck!