All Forum Posts by: Alex Bekeza

I'll say this. Most commercial lenders do not lend in such low amounts. Figure $75-$100k is a typically minimum loan amount requirement. However, they are the ones most likely to be flexible with foreign investors/foreign nationals with US credit history and bank accounts. Typically, they want more skin in the game 50%-65% LTV is common.

@Nancy Webb my advice to you would be to go on google and call every single local bank that comes up for Pontiac and the few neighboring cities.  You may find flexibility in something hyperlocal.  Local banks in Pontiac link

Another thought, if nobody will lend on the property you have under contract, then maybe consider cash out refinancing the properties you already own and use the proceeds to buy the Pontiac property cash assuming you have enough equity and the seller will wait that long. 

Best of luck to you and I hope you close on the Pontiac deal!  

@Hunter Byler

A minimum of 6 months seasoning before lending off an appraised value is a form of risk management that the vast majority of lenders have written into their guidelines.  

Many lenders say they don't have seasoning requirements which is there competitive advantage but they will only lend based off of the purchase price + renovation costs until you've hit their 6 or 12 mo min.  This is fine if you just need to get into a better interest rate and are worried the property could sit for sale for many months.  However, I know of 1 in particular who is willing to consider using the appraised value after 3 months of seasoning so options do exist.  This distinction if of course most important when you need to use cash out proceeds to pay down credit cards used for rehab or keep the ball rolling and re invest for more flips/investments.  

Do you mind sharing the interest rate your paying with that HML currently?

Do you feel that the property will most likely sell to primary residents or perhaps investors?  Either way, in order to get REFI and potentially take cash out now, before most bank's 6 or 12 month marks,  you'll need either a tenant in place or at least a letter of intent from a future tenant with a lease agreement and start date.  

Hope this helps.  

All the best, 

@Anshul Jain Welcome to BP!  If you're looking to connect with experienced Multi family investors who work in and outside of CA but live in our area I highly recommend the new meetup @Jeffrey Isenberg started in Sherman Oaks.  They hold it at a cantina on the private patio and it's just a great place to talk shop and learn.  You can find it here under the networking tab followed by "events" or look it up on meetup.  "Sherman Oaks Multifamily Investing Meetup".  It's free but I recommend buying some happy hour tacos!  Hope to see you there sometime.

All the best,

With over 80 Lenders within our database. We can confidently offer custom tailored financing on SFR 1-4s, Multifamily 5 + Units, Mixed-Use, and Commercial Properties.

No Tax Returns? No Problem.  We offer asset based programs for investors who have been turned down by the banks because of Debt-to-income ratios or maxing out their mortgage limits.  

We offer everything from 1-year interest only fix and flip loans to 30 year, fully amortized mortgages for your long term buy and hold rental properties.

We can assist with every stage of the BRRRR strategy and keep your portfolio growing at the speed you want. We can acquire the property with hard money very quickly and have solutions to overcome potential seasoning requirements when it comes to refi.

Feel free to send any questions to my email at [email protected]

Additionally, here is a link to our borrower questionnaire.  A completed questionnaire, schedule of real estate, and a copy of a recent credit report (credit karma ok) would give me everything I need to generate a specific pricing on a given scenario. 

https://forms.zohopublic.com/landbrothersrecom/for...

All the best,

Alex Bekeza, @Loans_By_Alex

Hard money for the purchase may be necessary depending on how distressed the property is but once its stabilized you could refinance into a lower interest rate, longer term commercial loan.  In either event, expect lenders to require 20%-30% of your skin in the game. 

With 30K you could find a hard money lender that would do 75%-80% LTV of the purchase as well as lend you some renovation costs which would typically be dispersed in draws. Keep in mind though most first time investors take a 5% LTV hit from lenders so 75% may be more realistic. But remember you'll need to save funds for not only reserves but closing costs which can tend to be a little higher in the form of origination charges when it comes to HML. Hope this helps a little.

 Good luck on your first deal! Looking forward to you posting the progress!

@Michael Glotfelty

A belated welcome to BP.  Just came across this and thought Id' mention that @Jeffrey Isenberg and his multifamily investment group just started a great meetup in Sherman Oaks. 

 https://www.meetup.com/Sherman-Oaks-Multi-Family-R...

I highly recommend checking it out.  Hope to meet you there next month.

All the best, 

@Marc Sinnott Congrats and looking forward to the pics you post in this thread!    

Feel free to reach out with any fix and flip financing questions in the future!

All the best, 

@Alfredo Martinez , my pleasure.  I agree with you.  I would just scrutinize the docs myself and address any question you have with your loan officer/mortgage broker.  It's their/our job to make sure you fully understand the terms.  Don't be afraid to push them hard on any specific issue because they definitely want your business and should be able to explain anything that seems iffy to you.  

As with any refinance, 2 things I'd just like to point out that you'll want to full understand or ask detailed questions about are:

1.  ADJUSTABLE RATES- If its an adjustable rate mortgage at some point during the life of the loan, you want to understand which index they use and what the margin/caps are.  

2.  PREPAY -  You definitely want to understand the prepayment penalty system for the new mortgage as it could dictate your future plans with the property.  

Hope this helps a little.

@Alfredo Martinez Of course it couldn't hurt but are there any specific provisions of the docs that are a red flag to you?  Maybe the BP community could chime in if you give a little more info.  

Best of luck, 

Most likely, the lender will not consider that basement as a 5th unit even if it is used as one.  It will come down to exactly what the property is legally zones as.  If zoned single family, they won't count more than 4 units.