All Forum Posts by: Bryan Hartlen

Generally speaking you would not be required to rewire except for areas you are working on. So, if you gutted a kitchen you would have to bring everything in that area up to current codes.

Keep in mind knob & tube is "up to code"! Work is only expected to be up to the code that was in place when the work was done. So, it is "up to code" just not up to CURRENT code.

If you were required to bring everything up to current code in a house any time you did any kind of rehab, work you did 2-3 years ago would need to be redone as codes are constantly changing/evolving.

Recourse 30 year term 7-8% rate if property is ready to lease 20% down FICO high desirable location, investor knows what they are doing.

Non recourse priced like hard money shorter term 24 months- 5 year term rates 11%-22%  some are only 50% loan to value or half down payment from your fund. 

I see others answering not reading that you CANNOT be a borrower with your fund source. BIG difference in the details. NO RECOURSE loans to a self directed deal mean NO FICO is used, no HUMAN involved, no person guarantees WAY different than NONQM or DSCR for 1-4. @Bryan Hartlen a number of people gave you WRONG answers.

My list. I DO NOT Broker these as the fees and rates are way to high for my blood. Most of these are short term and you have to keep refinancing or sell or payoff. Non owner only 1-4 units in location they like. I can give you phone numbers I do not make any referral fees and charge them nothing but a hug when I go to some conference.

North American Savings this is not a regular bank they loan in AZ expect 50% LTV on a prime property with 4 points 14% rate for five years. has a prepay

Solara  does AZ 65% ltv 2-3 points 11% rate for 5 year then due and payable. 

Marshall REddick/ Pac Crest/ Axos all at 50% LTV 3-4 points 5 year terms 12- 15% depending on quality of property and DSCR ratio Jim at JMAC also does in the same range, he's a decent gentleman and answers the phone if you are easy on the eyes (meaning not a pain) 2 points at 12-13 I would call him first in your situation.

In California Coastal I have other referrals at 65%-75% ltv for lower rates. Since these are hard money dudes they charge what they can sell and know what everyone else does. Great property, lower rate, they see what they might recover. Call me for some kinder names.

Follow the rules. Know the restrictions like your front teeth, do not make an exception and have the tax man on your back.

I've brokered nearly 250 DSCR loans in the last 3 years. When it comes to AZ, I'd say 70-75% of the industry doesn't lend there. The ones that do usually base rates on the 10-year swaps and 5-year swaps, and those have been trending up for the last 3 weeks.

I'd expect rates for AZ to be around 8.5% right now, which hurts, knowing so many DSCR lenders are 7.5% right now.

Since you are using your self directed 401k or you mean IRA? You cannot do a recourse loan. 99.8% of DSCR lenders are full recourse as they rely on the person's mortgage middle FICO for pricing the loan as well as location, property type, LTV, DSCR ratio, experience... There are a few with Trust in their company name but when you get the rates in the 15-22 % range it's not going to make you smile, none that I recommend. Other option is to get a loan against the 401k or IRA direct from who holds the account.