All Forum Posts by: Andrew Zamboroski

I’m working on a 10-property (13-unit) portfolio deal. The contract price is $2 million, and the appraised value is around $2.24 million. We have 20% down and everything has been moving along smoothly.

However, I just received the final numbers from the lender and noticed they've included a 2% broker origination fee on this loan. It's a DSCR loan, and while I've closed many conventional and investor loans in the past, this is my first DSCR product.

In all my previous deals, origination fees have typically ranged from 0.25% to 0.5%, so this caught me off guard.

Is a 2% broker fee standard or reasonable for DSCR loans? Or should I be negotiating this down?

Appreciate any insight from others with DSCR experience.

I have a duplex investment property with about $424,000 on the mortgage. My rents are $4,080 per month, typical expenses reflected on tax returns. Id like to access about $175,000 in equity, which likely puts me over the 70% LTV. What's the best way to access that equity?

Looking for guidance, thank you in advance. These are turnkey rentals.

Condo #1: $115,000 equity, bought @ 106k last year. Rent: $1400, HOA: $300, Insurance/Tax: $144, Net Monthly: $956, Net Yearly: $11,472, ROI: $11,472 / $106,000 = 10.8%

Potential Condo #2: $115,000 purchase price, Rent: 1400, HOA: $260, Insurance/Tax: $150

DSCR Cash Out Refi on Condo #1: LTV 75%, $86,000 Loan Amount, 30 yr fixed, 7.5% rate, Monthly Payment: Around $650, Closing Costs: Around 8-10k, Total Cash Left: $76,000

Condo #1 After Refi: Money Left In: $28,750, Monthly Net w/ Payment: $306, ROI: $3600 / $28,750 = 12.5%

Cash In Hand: $76,000

DSCR Loan on Condo #2: $115,000 purchase price, 25% down: $28,750, after fees estimating $35,000 All In, $1400 Rent, $260 HOA, $150 Insurance/Tax, $650 Monthly Payment, Net Monthly: $330, Net Yearly $3960, ROI: $3960 / $35,000 = 11.3%

RESULT: Total Monthly Costs: $2160, Total Monthly Net: $630 ish, Yearly Net: $7,560, Total Cash Invested $65,000, Yearly ROI: 11.6% CASH LEFT OVER: $41,000

Could put the cash into a third condo or put into the S&P 500.

Looking for some guidance on whether or not I should pull the trigger for some context:

19 years old college student studying engineering (heavy courseload)

Living in Chicago, Condos are in Ohio (I have family and friends out there)

I work part time at a high end hibachi restaurant averaging $25-$30 an hour.

My rent + utilities with roommates is $750 with room mates.

The numbers work out, my main concern is whether or not Ill deal with large vacancy within the next 5 years, or a recession, and I have to cover the monthly costs on my own ($2,160) which is a lot and not sure if I would be able to keep that up for a long time if I am not working full time in the industry. I would have the safety net of $40,000+ sitting in an investment account, and Ill try to save as much as possible per month to counter any large vacancies in possible recession. The other option is to get DSCR loans with a LTV of 40-50%, monthly payment will be less but then I wont have much $ left over to put in stocks. I want to invest in stocks and also leverage debt. SO, what does everybody think, based on my age, scenario, the current economy / real estate market, what should I do? My father says I should just leave the condo alone and just try to build up a stock portfolio slowly. I currently have around $5000 in an investment account.

I took out a HELOC on my house to buy another property. I completely remodeled it and added square feet to the property to increase the value. The property is rented. I would like to pay off the HELOC, but I'm not sure which direction to take. DSCR loan, cash out refi. The important thing here is that if I take out debt on the property, it has to remain at the same value that I'm paying on the HELOC. Or should I continue with the Heloc until I sell the property? If I sell I will have to pay a lot of money in taxes since the ARV Increased.

  Can anyone here please help me? Suggestions.... Thank you.

With the DSCR loan you have to be living in it after the renovation don't you?

Situation: I have a 3/3 townhome located in South Florida that is paid off and owned by family member.  The purpose for this property will be to supplement their long term care.  I'm estimating around $75K for the renovation. If it were to sell today it would probably sell for the $300-330K range.

What would be the best loan product to get this done.  Feel free to call out the pros/cons of each. Maybe this is pretty simple answer but I always appreciate the depth of knowledge of BiggerPockets! Thanks much in advance.

Hey guys question that's anyone knows some hard money lender that he used and have a good experience with him for flipping with his journey  ty ant recommended welcome 🙏 living in Illinois 

Greetings BP,

I'm looking for any direction on finding a lender for my first GUC for a multi-family project. I've rehabbed before but lenders want construction experience on 1-2 builds. I will own the land free and clear so that won't be an issue. I have my builder ready to go. Just need the financing. I considered just doing an FHA One-Time close loan for a SF just to get a project under my belt. I would much prefer to use the land for a mfh to produce max return though.

Anyone know of any products that will lend with no experience?

We rented our first property 2 years ago and financed it at 7.25% with the idea when rates came down we would refinance. At what rate would you consider it worth it to refinance? 

Hi,

I am looking to fund 7 units. I have plenty of experience with 1-4 units but have never done more than 4. I am looking into what type of financing I would be able to get and what type of documentation I would need. I do know about DSCR but have never done any of DSCR financing or put together any type of package for that type of financing. Any help would be greatly appreciated.

Thanks

Matt