All Forum Posts by: Brandon Beardt

 Hi Crystal,

There are quite a few different hard money lenders that will work with first time investors. 1st timers are usually capped at lower LTV/max loan amount and higher pricing. But as you gain more experience, the max LTV can increase quite nicely and you'll get better pricing. I'd say do some research in the forums and look at some Hard Money Lenders listed in the Network tab above. Talk to a few of them, ask a lot of questions, read their reviews, and see what they offer! You'll want to fully understand what you're getting yourself into before anything.

 Hi Manny,

Not sure if you're looking for financing for a primary residence or an investment property. Either way, if it's an investment property, DSCR loan seems to only check one of your boxes. DSCR doesn't require any income verification if the property is projected to cashflow, however, you'll typically have to put down 20%+. Based on you not wanting any PMI, I would assume you want to finance at a lower down payment, sub 20% right? If so, I would check out what some of the local banks or credit unions in your area are offering. They may give you some leeway if you start a banking relationship with them but that's not always the case. Guidelines for primary residences and investment property's are drastically different so everything depends on what you're trying to do and your goals. Knowledge is key so explore as many avenues as you can - Best of luck!

 Hi Carlos,

Congrats on getting the process started! If anything, I would recommend getting a specific pre-approval for each specific property you are looking to submit an offer on, instead of just 1 generic pre-approval letter for general shopping. I would imagine the person you're working would be willing to do that. Once you've submitted an offer, have that person reach out to the listing agent to go over the pre-approval with them. They can explain how you're more than qualified for the loan and answer any questions they may have. This usually gives the listing agent peace of mind knowing that the client is ACTUALLY qualified to purchase the property and make your offer stand out.  Best of luck! :)

 Hi Davine,

Congrats on starting your flipping journey! To answer your second question, there are a bunch of questions you should be asking lenders/brokers. I think a good base is inquiring about the following: requirements for qualification, what the loan process is going to be like, time frames & time lines, the cost and fees of getting the loan, any prepayment penalties, what the process is like post closing, etc. There are probably many more questions of this nature to be asked but it always helps to understand what you're getting into. Wishing you the best of luck!

 Hi Brady,

In all honesty, the numbers don't look too out of the ordinary and the rate seems very competitive given the scenario. Regarding the origination fee, it's about 1.6% of the loan amount which is normal. Usually the Origination fee paid to the Lender is non-negotiable but if your friend is a broker instead of working for a direct lender, his fee may be able to be negotiated down. Then again, they're your friend and they have to eat too! haha

 Hi Aryel,

I think it would help potential respondents in the forum if they knew a little more detail about what your are trying to accomplish. What kind of investment property are you pursuing, purchase price, subject area, goals, etc. There are a TON of financing options available in today's market, but I guarantee most won't suite your needs or be in your best interest. The details matter! :)

 Hi Marcus,

I've done deals with them on the broker side quite a few times and like their process. Also have a few submitted to them right now as well. They're relatively fast and definitely know what they're doing. They have quite a few different loan products available but do a lot of volume with the kind of transaction you're currently in. You're in good hands! Best of luck.

 Hi David,

Congrats to your client for finding a property they like! From reading your post, I'm assuming the interest rate is killing the deal in that the projected monthly payments are too high to qualify with either DTI or DSCR? I've noticed negotiating for seller credits is a great way for borrowers to be able to buy down the interest rate and help lower the monthly payment to a more comfortable level or even help qualify. Usually there's a cap of about 2% of the purchase price, which is quite considerable for a property such as this.

 Hi Gabriela,

The lender is going to base your debts on what is indicated on your credit report & anything else you "declare" on the mortgage application (along with the new mortgage of course). Keep in mind, once they pull your credit, they'll be able to see all the recent credit inquires pulled on you from the past few months (I think 60-120 days or so). Since you closed the HML at the end of July, it's possible that it shows up and the lender asks you for an explanation as to what this is for and if the "pull" resulted in any re-occurring debt. Depending on what you indicate (granted, I don't know the full situation regarding the HML) it has the potential of affecting your DTI. Hope this helps and best of luck!

 Hi Sam,

Based on the scenario, $3.4K doesn't seem too terribly high. Based on the loan amount, it's about 2.5 points like the others on this post said. I would imagine the broker get's a piece and the lender they used gets a piece. In general, the lower the loan amount, the higher the "cost" is in terms of percentages/points because of the lower transaction amount. If you think about it, the same amount of work is going to be put into the deal on their end whether it's a $135K loan or a $500K loan. Did they offer you a good enough experience to match the fee they are charging? If so, great! If not, either negotiate a lower fee or talk to other brokers on the next property. Remember, you get what you pay for! In regards to the other closing costs - they all seem reasonable and normal for a transaction like this tbh. It just seems higher percentage wise because the transaction amount is lower. Congrats on the new investment property!