All Forum Posts by: Alex Bekeza

Depending on what type of underwriting method a Mortgage Broker found most suitable for your scenario + your credit score, you could get slightly lower interest rate although 6% is a good number to plug in to be conservative.  

If you wanted to take a look in SoCal, BP member @Jeffrey Isenberg understands the principles and nuances driving long term success in the South Bay market.  Working with Jeff really helped me take a 30,000 foot view of investing in multifamily in Los Angeles.  I recommend reaching out, he has a great way of organizing that market into tiers tailored to investors of different levels.  

@Kim Mitchell One incredibly helpful underwriting method to take advantage of would be "Asset Depletion."  Basically, there are programs out there that will offer great rates with 30 year Amortization and instead of using personal income they will consider the equity you have in other properties.  You don't even have to take this equity out!  But it gives the lender extra assurance that you are a stable borrower.  

Feel free to reach out if you want to talk more about it.  I know for sure this is available in Florida.  Would have to double check on Ohio.  

In the middle of doing a refinance for a client in Encinitas, CA on a 2 unit right now and of course I've had to make modifications to his insurance.  He is insured by All State and it looks like they write umbrella policies.  Have you looked into this?

Our brokerage is based in Los Angeles but we broker financing from several nationwide lenders who extend funds to DFW and Texas as a whole.  

We specialize in commercial style loans that are based off of the property itself rather than borrower Debt-to-income.  Tax Returns not even typically required. 

70-80% LTV. 30 year terms, fully amortized with rates in the 6-8.5% range. Non Owner Occupied Only.

We'd be happy to dive into your refi scenario and lay out some options.  Feel free to reach out. 

Side Note: The biggest hard money lender that we originate for does not require an appraisal. They save the borrower some money by performing their own BPO. It's pretty standard on HMLs under $1 million. A standard appraisal usually doesn't make sense when you're lending based on ARV of a distressed property.

www.landbrothersre.com

I know there are thousands of landlords out there paying over 6% on a commercial or hard money loan they used to purchase and/or renovate their 1-4 unit investments.  

I've been helping many of these folks refinance into a 30 year, fully amortized loan with the rate fixed for the first 7 years in the mid 5% range.  

Whether you simply need a better rate and term to increase cash flow or whether you'd like to access some of that equity to buy more properties or take care of some deferred maintenance, I'd love to lay out some options for you.  

The reason this product is so valuable is because of the variety of underwriting methods we can choose to use in order to qualify.

If Debt to Income has kept you out of a better mortgage because your write offs have thrown off your DTI % then you'll be blown away by how easy it is to qualify for this loan via either:

ASSET DEPLETION 

*If you have another property with significant equity  it can serve as an alternative to a DTI requirement.  The equity in that property stays right where it is!!!  Nothing happens to it in the practical world.  However, it makes the lender feel comfortable enough to lend to you without viewing tax returns*

or

DEBT COVERAGE RATIO

**If your property will debt cover well enough with the new proposed mortgage then that could substitute for qualifying based on income alone. **

In either scenario there are NO TAX RETURNS required. 

Feel free to reach out anytime to have me take a look and see if you could qualify for a 30 year, fully amortized mortgage with the rate fixed for the first 7 years in the mid 5% range on your 1-4 Unit Investment in CALIFORNIA.

All the best,

@Guy Yoes

Sounds like an interesting deal.  Are the 5 duplexes on the same or contiguous parcels?  

Based on the # of units and loan size, this is a small balance commercial loan scenario.  

Even if the interest rate is higher than conventional you still have 30 year term/fully amortized options.  

@Benjamin Schultz

From a financing perspective POHs can be deal killers. Especially when you're dealing with loan amounts under $1 million. Most lenders don't want to see anything over 39% POHs plus they will not consider rents collected from POHs to go towards DSCR.

In order to qualify on the debt coverage side, you need to be doing so via lot rents.  

Also, if you do have POHs, make SURE you can get a rent roll which has lot rent vs home rent separated from one another.

A lot of times these strategies for how to off load the POHs don't do you any good unless you're buying the property cash or using seller financing.  

I really hope that whoever wins this big one is a Bigger Pockets member so that they can chime in on this thread haha

@Tyson Cross Wear that MH Park stigma with pride!  Little do your friends know how much of a cash cow a well managed MH community can be!