All Forum Posts by: Alex Hunt

Hey Kim, I've worked with kiavi before, but I haven't heard of the other 3 honestly. Kiavi is a large company, smooth portal & nice reps! Sent you a message as well!

Hey @Sean Spagnola a lot of lenders will say no, almost all traditional banks are saying no! Need a good DSCR lender for this, it is doable for no seasoning especially since you are doing renovations, more than $25,000 right? Then you could get a 75%LTV cashout refinance for that next down payment!

Happy to connect on this. 

Hey @Troy Smith Yes check with your current lender as they give you more favorable terms being your 2nd loan, but if they mainly do fix n flip loans, they're DSCR will most likely be expense. Shop around and see what's out there, getting a quote doesn't cost anything! As other investors who their using right now, ask not just about rate but also the quality of service! Finding your own strong comps can help, make sure they're usable.

Happy to connect!

Hey Kyle, since your long term goal is to continue to purchase homes while having some cash flow. I believe the best way to do, would be to if the amount you can take out of the primary residence is enough for 2 rentals or 1 larger maybe multifamily then do that. As this will get you the most assets for you buck. If you buy in cash, from day 1 of closing you can do a cash refinance, which is like a rate n term refinance. You get 80% of the cash purchase price back on a 30 year fixed & then can use the cashout as down payment on rental #2

You can either buy it in cash, then you are just paying the HELOC/ 2nd & generating more cashflow. Other option is to use the HELOC/2nd as down payment, then you are paying the 2nd & the mortgage on the new rental, so cashflow will have to be high. Are you looking to do regular/ long term rents, short term rental?

Any cash flow or lending questions. I am happy to help!

Hey Chaim, happy to help on this! You should ask your PM & the agent, try to find comps on zillow/redfin that are within a few miles of that home & sold within the last 12 months. You can get a good idea of price per sqft then apply that to your property. Bank/ lender can also pre-screen and give you an idea prior to appraisal. For your 2nd question, some lenders don't allow this especially traditional banks. Do you know what the prepayment penalty is on the current loan? Since you did do renovations, it is possible to refinance now.  

Happy to connect!

Hey Nicholas, would you qualify for an FHA loan? They do up to 4 units. If you don't then you would need a DSCR loan, buy down the prepay penalty if you want to cashout in 1-2 years so you pay less fee to refinance. Go with a hard money/ fix n flip loan, you'd need experience for this or get a lower LTV 1st time flip loan. Will give you no prepay penalty, but will be harder to cashout as not paying down the principle, will really need to add some value. Can share some realtors for that area if you're interested

Hey Chris, we own properties & lend in Philly. It can be a tough market if you aren't looking to do renovations. Can connect with you some realtors to help your search.  

This is a common thing for RE professionals, some underwriters do not like this but it's definitely a solvable problem. Happy to take a look if you still need help with this!

Hello! It's fantastic to hear about your plans to expand into the short-term rental market in upstate South Carolina. That area has a lot of potential! Navigating the world of private lending can definitely feel like new territory, but it's a valuable avenue for growth. To answer your later question, I believe finding the lender 1st is best. As you can ask the lender how a particular property does with their underwriter criteria prior to getting under contract.

As a lender, I can certainly offer some insights into how to build those crucial relationships and what the private lending process generally looks like. Here are a few key areas to focus on:
Networking is key, Clearly Articulate your vision, build trust, emphasize your RE track record, seek out lenders on platforms such as this or at in person events, compare rates & service with other lenders!

Don't hesitate to ask if you have more specific questions as you move forward! Happy to connect.

Quote from @Dulce Davis:

I hear that it's hard to find someone in Texas who will do blanket mortgages. Another lender who is also an investor, says its really not allowed in our area but she knows it happens. What are y'alls opinions on blanket mortgages?

I have 5 SFRs so far. Four mortgages have a balance around $90-100K, with values ranging $135-165. One property has no mortgage. I'm wondering if it would be an option in my situation to do a blanket loan for scaling. Or, just keep going as I am, doing delayed lending to cash out after I make repairs and get a tenant in them. Pros vs cons?

Happy to help on the blanket! There are some pros & cons for sure: 
Pros: 1 payment versus multiple easier to keep track of, some times higher LTV than individual loans. 
cons: there is a “break fee” on most, if you want to sell 1 or refinance 1 property in specific you’ll have to pay this fee to rebalance the blanket loan, typically 1-2% of remaining balance. Rates can be a bit higher as well for the extra underwriting. 

Doing delayed purchase is a good option but using majority of the cash to get the project done, which is fine if you’re doing 1 at a time. Makes it very hard to do multiple at a time, you could utilize a wide variety of loan options to scale faster but I wouldn’t recommend going max leverage on them. Fix n flip loans for purchase + reno. 
bridge loans for purchase with no reno, do reno out of pocket. 
cashout refinance of course upon completion & renting out, to move funds to the next deal.