All Forum Posts by: Brandon Beardt

 Out of curiosity, what's the remaining 10% of the remodel you still need to complete & did you run out of funds for completion? Or is time the main factor of concern with the ballooning note? If it the property was built from the ground floor, you'll need a certificate of occupancy. Also, in general, lenders will want the appraisal report to come back "as-is" as opposed to "subject to" and then a list of needed repairs.

 Hi Pedro,

Many DSCR lenders are able to lend nationwide, so most (if not all) should be able to help you out with a deal in the Chicago area. I bet every DSCR lender here on BiggerPockets can help you out in some way, haha. Just make sure to research companies and read reviews, either here on BP or on Google, before spending any time contacting them and getting more information. The basis of DSCR is the same for every lender, but each have their own set of guidelines and loan process. That's the information you want to know more about once you eventually start reaching out. If you're planning to invest in RE for the long run, you'll want to establish a relationship with your lender(s) to help you grow and succeed as an investor. Best of luck and happy hunting!

Hi Jorge,

I personally have not found any DSCR lenders offering 80% LTV on C/O refinances at this time, even with good FICO and experience. But there's a chance there's one out there. From what I've seen, most can only go up to 75% LTV right now for C/O. I only see 80% LTV available for DSCR purchases and R/T refis now a days. What's the reasoning for wanting such a high LTV? Do you just want to maximize your approved leverage, do you have a high payoff amount, or something else

 Hi Ryan,

DSCR lenders typically want to see asset statements going back at least 60 days. If the funds you plan on using for the down payment have been in there that long, no problem. If there are any large deposits indicated on those statements, you'll more than likely need an LOE to source it and verify it's from an approved source (lender's discretion if the deposit needs to be sourced and whether the source is allowed or not).

Not 100% sure any DSCR lender would be able to close in less than 2 weeks IF starting the process from scratch. It could be a different story if you already have the appraisals for all 4 properties and can transfer them to the new DSCR lender, and if you already have title and insurance work done. Then it would only be a matter of filling out the application, revising the insurance and title work, getting the appraisals transferred, and submitting the loan. Even with that, though, it's possible it takes longer than 2 weeks depending on specific lender turn times and if any other issues arise. Regardless, 2 weeks is a hard task and ask. If you're not able to get an extension for another week or 2, you'll be pushing it IMO. I would imagine the seller would be open to the extension, otherwise the property would have to go back on the market and they'd have to wait even longer to sell.

 Hi La'Terrius,

Industry average I would say is between $100-150K. There are a few that can offer lower as the others have said, $60-75K.

 Hi Jewel,

I'd recommend working with a mortgage broker as they have access to many different types of lenders with various loan programs that could be best suited for you. They'll save you time as they do the work of searching for the best lender for your situation. Also, do the research and read reviews on them before spending your time & energy contacting & explaining your goals with them. Your time is valuable and better off spent finding deals, so work with reputable people who will make your life easier. Most lenders ask for the same basic initial information; what your goals are, what market you're looking in, budget, FICO, liquidity, etc, so having some these readily available will help. Best of luck to you!

Hi Michael, yes, it is possible to get delayed financing if you're trying to get back some of that cash you put into the property before the 6 months title seasoning period that many lenders require. If refinancing before the seasoning period, leverage for alternative financing options will typically be based on the LTC (purchase + rehab) instead of current as-is LTV. If you're planning on refinancing AGAIN shortly after, you may want to look into shorter term bridge financing options instead of long-term financing as there are usually prepayment penalties associated with them. Not sure if it'll be worth paying the extra fees and holding costs just to wait out the seasoning period, but you have different options nonetheless. Best of luck!

 Hi Ben

You can easily get a 30 year mortgage with an LLC through alternative financing options. Conventional lenders (which I believe is what you were looking into) won't allow you to close in an entity, which may be why you're not able to find what you're looking for. Alternative financing options (such as DSCR, Bank Statement, Commercial loans) give you that ability to close in an entity, but at higher costs (rates & fees) compared to conventional financing. There's also usually less documentation required with these programs when compared to full doc conventional loans. When looking to refinance, consider both options and weigh the pros and cons. Whatever route you choose, make sure they align with your long term goals. Best of luck!

 Hi Robert,

Those terms are not terrible with where the market is now. Curious as to why you are no longer being offered 75% LTV for the cash out? That's an extra $9,000 being left on the table, but not sure if that's of major importance to you. If you're trying to utilize the extra equity, I'd recommend shopping some more to see what other brokers/lenders can offer you; both at 70% LTV (to compare apples to apples) and 75% LTV. Best of luck!