All Forum Posts by: Andrew Zamboroski

Do you focus on building relationships with a few reliable lenders, or do you keep your list broad? I’m curious how others approach finding lenders for consistent funding opportunities. Any tips for building a solid list?

I am new to Bigger Pockets and this is my first post, so I apologize if these questions may seem very basic to some.

I own 7 single family homes and 2 duplexes which are all paid and have no outstanding loans. I have not purchased a property in a few years, but I am closing on a new single-family house this Friday that I am paying cash for. I am thinking about actively trying to grow my investment portfolio and use my existing properties as leverage to acquire more properties. I have a couple of questions about ownership structure and a couple about possible cash out finance options for my existing properties.

Right now, all of these homes are in personal name, and I realize how much of a mistake this is and I plan to move them into LLC's before the end of 2024. If I am about to search for some kind of cash out refinancing options, is it best to keep the properties in my personal name for now or should I move them into LLC's before searching for financing options?

My next question is about financing options. If I am looking to pull money out of a total of 10 properties to make new investments, what are the options here? Are there loans that I can take out against the entire 10 property portfolio, or do people usually get a single loan per property? If these are both options what are the pros and cons to each of these financing options?

Any advice or personal experience that you can share would be greatly appreciated.

Corey

Hi everyone,

Do you know of a lender with good rate and terms. I am purchasing a couple duplexes, and I am looking for long term financing along with a competitive rate. Do you, guys, know of a company that I can work with?

Thanks,

Joel Barjon

Hi All. First post. First investment property. 

Just getting my financial house in order and talking to some lenders. 

Most of them are quoting me: 
An origination fee - $2500

A processing fee - $1000

An Underwriting fee - $1000

Some misc. fee ("Admin") - $500

The numbers change, but ultimately the bottom line is just for the loan, it's $4700-$5500 in fees. 

Is this normal for this type of loan? I assume so since that's what everyone is quoting me. 

I appreciate the help. 

I am looking for a DSCR lender for a portfolio of 7 small SFR here in the DFW metroplex.

Would be looking for 1% origination.  

Purchase price is $1.3mm w/ down payment of $325k. =975k loan 

6 of the 7 homes have renters in place.  Cumulative cash flow fully occupied is $13,030. 

DSCR between 1-1.25% criteria suitability from lender.

Close 25 days

If are a lender and can meet or beat this criteria with certainty please lmk and I can start sending over the information.   

Are there lenders that will do a cash out on a property with no mortgage? And I wanna separate business from personal so I wanna get the loan in my llc transfer title to my llc.. 

Hello all,

I am looking to cash-out Re-fi several newly renovated SFH rentals in the Hinesville ,GA area.

I understand that typically investment properties have a threshold of 75% LTV in a CASH-OUT scenario, but I figured it couldn't hurt to ask if any of you fine people know of anyone that could push it a little closer to 80%.

Thank you!

Hi,

I am an out of state investor, currently rehabbing a property which I plan to rent out and refinance in a few months. 

From what I was reading about refinancing requirements - seems like some of them require the property to be managed by a management company. 

Can I self manage this property and still get a refinance? (I have boots on the ground in case needed)

Thanks  

Well, no, the fed cut the fed funds rate which is the rate that big banks lend money to each overnight. Therefore, the Fed decides what the shortest-term loan cost will be. The market decides what every other interest rate will be. Obviously, mortgages are longer than 24 hours so there is no direct correlation between fed funds and long-term mortgage rates. (The exception to this is loans based off prime which would typically be home equity lines of credit as the Fed funds rate does affect prime)

The Federal Reserve meets 8 times a year, while the bond market which actually dictates mortgage interest rates is traded every second of every day of the year. So, if you and I knew the Fed was going to start cutting the fed funds rate, the traders who do it for a living did as well. They look forward to where rates are going to be, not where they are currently. Therefore, the reason mortgage rates have gone down 1.5%~ or so over the last three months is due to the bond market pricing in this cut and future cuts. You can bet on where you think the fed funds rate will be with Fed Funds futures contracts, and right now that market has the fed funds rate all the down to 3% by June 2025. https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html Of course, markets can be wrong, and data can change, but that is what is being priced in at the moment.

In fact, mortgage rates often RISE after a Fed funds rate cut. This can happen for any number of reasons but for example if Powell says something that seems contradictory to the above assumptions rates can pop quickly up.

That all being said, rates can still be had at this point in the 5’s for those with good credit and loan to value. Refi’s is certainly a possibility for those that have purchased in the last two years or so.