All Forum Posts by: Andrew Zamboroski

I just purchased my first property using my heloc, it's renovated and rented out (BRRRR strategy). I bought it 3 months ago and am running into a problem when it comes to refinancing it due to the seasoning period. Most lenders seem to have a 6 month seasoning period, so I can't do a cash out refinance right now at 3 months after purchase. Are there private money lenders who do cash out refinancing deals as an alternative? Or what is the best way to get around this seosoning requirement so that i can buy my next property with my heloc? Thank you!

Congratulations on completing the rehab! Yes, many DSCR options allow shorter seasoning periods. We can even waive the period altogether with documented rehab. Please reach out if you need assistance or if we can help in anyway.

cheers!

0 Votes

Quote from @Mark Koontz:

I am currently under contract on a fixer-upper Farmette (Maryland). Purchase price is 400k with at least 50k rehab needed. I have 100k liquid to put down. The property needs a new roof, windows, drywall, electrical, bathroom, etc. That being said, it's not going to conventional financing. That leads me to where I am now - a conventional rehab loan. Are there any other options aside from the rehab loan other than cash?

The issues:

-I wanted to put 50k down on the purchase, (lender will waive PMI with 10% down), and pay cash for the rehab and do part of it myself. The conventional rehab loan doesn't allow you to do any of the work yourself.

-The conventional rehab loan requires a general contractor to give one quote, with all of the subcontractors included. So I am paying a premium to the GC for the extra facilitation of the SC's.

-I am quoted a higher interest rate and more fees since its a rehab loan.

Appraisal Issues:

-A separate issue is that there are two block garages on the property. One of them was struck by some heavy machinery and created about a one inch wide crack along the entire height of the wall. Will this create any issues when they do the appraisal? I am not worried about the integrity of the structure, but will the bank require this to be fixed? I added a photo of the crack.

-There is a large amount of debris on the property including two 53' semi trailers that are in disrepair. Will the bank or insurance company require them to be removed?

-The house and garages have wood siding with peeling paint. Any issues here?

-The garages have broken windows.

Mark,
Assuming this is an investment property, I would explore a fix and flip loan. This would likely be much more flexible and have less rigid guidelines on the rehab portion. If we can help provide value or pricing, please reach out to me here.

cheers!

1 Vote

Quote from @Michael Dallas:

I am 21 years old and currently playing baseball at a D1 college. I bought my 1st house hack property last year which has done very well for me. So obviously I have caught the bug and want to buy more! I am looking to buy another property this summer and house hack that one. As a college student traditional financing won’t work for me anymore as I already had to get my father to co-sign my 1st loan. I am in talks with a private money lender right now who is killing it as an agent and doing flips. Said he is very interested in lending if it makes us both some money!

What questions should I be asking him for us both to get the best terms so that we both make money on this deal??

Thank yall so much for the insight!! Can’t wait to learn!

As Ko mentioned, kudos to you for the early success! Hard or private money would both suit your needs, depending on how many funds you have to contribute. I would really question them on their preferred deal structure and costs. For example, how much will they lend, at what interest rate, term, and costs.

best wishes!

1 Vote

Quote from @Jean-Marc L.:

Hello! I purchased my first property (quadplex) about one year ago for $410k with the intent to convert at least two units into STRs and either leave the other two as LTRs or convert those to STRs as well. I have since converted two units into airbnbs, which have left me at approximately a 3.7% cap rate with the other two units presently vacant. The other two units are vacant because they need renovation (and furnishing) prior to rental. One unit needs about 7k whereas the other needs approximately 30k. Projected cap rate would increase to around 14-17%.

Further still, the house overall is a fixer-upper and could use 80-100k to modernize the amenities. These numbers include the estimates mentioned in the previous paragraph. If such an investment were made, the ARV is likely >$600k--although this has been difficult for me to estimate since TX is a non-disclosure state.

Ideally, I would pursue the larger 80-100k investment and cash-out refi afterwards along with enjoy the increased STR / LTR rental income. Yet, I am also open to the former option of just renovating two units for the 14-17% cap rate. Unfortunately, I am not currently financially capable of making these renovations and would like to explore options for acquiring this capital. I am interested in either private lending or partnering with a fellow RE investor. If anyone is interested or has other suggestions please DM me or comment. Thank you kindly!

Depending on the numbers, you may be able to do a refinance with rehab fix and flip loan. If you want to connect so that I can take a look, shoot me a message. Happy Saturday!

1 Vote

Galveston, Texas

Quote from @Hina Anis:

Need some Advice- Looking at todays rates whats the better way to go?

5 homes as collateral 8% for 5 years balloon for 20 years

or 3 year floating capped at 7.5%-5% for 25 years. Asking for 6 properties as collateral?

Thanks!

Have you looked into fixed options? I’m not sure the specifics, but, we are currently doing/have closed many recently lower than that on 30-year fixed DSCR loan (individual or portfolio). Of course that is qualification dependent, just throwing that out there though to look into the difference!

0 Votes

Quote from @Jeremiah Alton:

Anyone used these folks before?? Member of a group I am in on FB but the letter they send me looks unofficial.

Offering me loan at 5% interest for 30 years no prepayment. BUT there are some misspellings in the contract an punctuation is off... So it started raising questions.

It sounds too good to be true and red flags everywhere!

0 Votes

Seattle, Washington

Quote from @Rahman Sobhan:

Hello Everyone, I am starting a rehab in Detroit MI and will use Hard Money Lending (HML). Has anyone worked or used this HML from Detroit MI? Appreciate an honest feedback

Local lender to the Detroit market. I have never heard of them (good or bad); they could be 100% legitimate, I just am not familiar with them and work a lot in the area. If you want a second look, happy to peek ourselves or refer you to a colleague!

1 Vote

Detroit, Michigan

Quote from @Selina Giarla:

I have been striking out in underwriting with 30 yr fixed rates, the math just isn't working out for me to make any cash flow and the debt service monthly expense is wiping out any NOI and thus my yield. So... I am considering pivoting to interest only loans with a refi plan. Problem is... I used to use Bankrate to see a wide variety of rate options for quick underwriting and that website doesn't allow me to get rates for the I/O ARMs for multi family rentals. I really want to understand how those rates are comparing today against 30yr fixed. What are they and where can I easily find them so I don't need to fill yout any forms? Credit exceeds 830. Are any lenders giving out I/O ARMS with no points and are the rates lower than 30yr fixed? Any other creative financing or options?

Jay is spot on with this one! Compared to a non-interest only product, the rate will almost always be higher. However, you can still cashflow more in most instances, although, generally it’s not a ton of a difference.

0 Votes

Quote from @Justin Smith:

It's my first time working with a private lender. Want to be cautious on legitimacy. Has anyone worked with Thomas Ungrady and/or American Nationwide Capital?

Justin,

it definitely sounds too good to be true, so proceed with caution.I like to think of it this way, why would someone give you money at 3% when they can get more money in a savings account without risk?

0 Votes

Quote from @Ayyoub Feza:

Quote from @Andrew Zamboroski:

Quote from @Ayyoub Feza:

Hi,

We have one loan for my house under my name, another loan for a rental property under my wife name. So if we want to buy another rental property who do you suggest to get the loan? Myself or my wife? We have same credit score/history. Any suggestions/opinion will be appreciated.

Regards

Hey there, nice to see someone in my local area! Are you looking to use a conventional loan? If so, who has a better debt to income ratio to consider? Or as others have said, you could use other financing and buy in an entity.

happy Friday!

Hi, thx Andrew. Same here, happy to see a local investor. This would be another rental property. Not sure what are other options but was thinking about conventional loan. Both of us more or less same income debt ratio. What are other options? Any learning material link/book/video I can go through to learn more about them?

happy Friday!

If you have the same dti and both have enough room for the additional house, either of you should be able to purchase it. The other alternative would be a DSCR loan to your entity with both or either as a personal guarantor.

1 Vote

Detroit, Michigan

All Forum Posts by: Andrew Zamboroski

Andrew Zamboroski has started 0 posts and replied 276 times.

Post: Looking for private money lenders/refinance seasoning period

Post: Financing Options / Appraisal Issues

Post: 1st private money deal

Post: Looking for equity partner or private lender to rehab my quadplex

Post: Floating or Fixed Rate

Post: Lender24Solution - Private money/ Hard Money and Secured

Post: Builder Circle (Hard Money Lender)

Post: ISO Lenders: 30 Yr Fixed or......10/1 Interest only ARM?

Post: American Nationwide Capital

Post: Loan for second rental property