All Forum Posts by: GR Blanke

Yes, a cash out can be done after 30 days on the after repair value (new appraisal) if it is a hold. Of more concern would be your DSCR. Message me.

Yes...We have one hard money program that allows you to use our personal loans for the down payment. Rates are probably not as competitive as private money; however it can be done. 

More then likely it is a conventional bank portfolio product. Most of the banks I deal with on their conventional portfolio products have a one year seasoning for a cash out refi. I am speculating this because you are saying after rehab and 12 months they will do a 85% ltv cash out refi on investment. 85% is not Fannie-Freddie investment cash out guidelines. Banks are not in the ARV and risk game. They have to answer to compliance, bank examiners, board members and possible shareholder. If you want to do an ARV loan, private or hard money is your best bet.

You must be trying to get a conventional loan. Conventional rates are better than hard money; however guidelines require 12 months seasoning for cash out. Our hard money program for rehabbing does not have seasoning. 

Full interest reserves are very common in construction loans. We work work with HML that require the same. My guess is they don't have or want a monthly interest billing department and possible have to do monthly payouts to their investors. The reason people go to a HML is because they cannot qualify for conventional financing . This doesn't mean HML terms are going to be better or easier to get. In most cases it's harder and stricter. I know one HML who charges a minimum $15,000 fee for a no doc loan at 50% of appraised value.

Jerry, there is an old saying...those who lend the money make the rules! So yes... Commercial loans do not have the same guidelines as Fannie, Freddie and FHA residential. They evaluate risk and possible loss exposure.

Zachary it seems like a part of the process is missing. We will lend to newbie's based on 65 to 70% of ARV and strength of borrower(s); however we give you 80% of the purchase and 80% of the rehab if ARV fits. Once you have 3/4 flips under your belt, we will lend 90/90 and 90/100 on extremely an experienced flipper. We also offer personal loans to assist with cost; however some investors require a 2 month seasoning. Hope that helps.

Not versed on Connecticut title charges; however it seems competitive. I ran your scenario and can up right around 5 with similar cost (Illinois) The online thing can be a big myth. You have to check their assumptions. 

I no problem on the LLC; however 40k is too small.

No...we got out of residential hard money. Not for us. We found the lenders to be too inconsistent with their term and guidelines.