All Forum Posts by: Brandon Beardt

 Hi Robert,

Not sure why your lender wouldn't be able to loan on properties sub $125K, unless I'm misinterpreting your post. In my experience, that's never been an issue unless the properties themselves are worth sub $75K. Perhaps that lender just has more strict lending guidelines than most. My recommendation is finding a new lender or better yet, work with an experienced mortgage broker that specializes in investment property financing. They'll be able to review your scenario and strategize a loan solution that best fits your needs. Best of luck!

 Bobby,

What type of financing are you looking for with your expansion into Toledo? Properties sub $100K are usually no issue as long as the minimum loan amounts are met and they aren't rural. Best of luck in completing your team!

 Hi Tiffany,

You can get a full 75% LTV DSCR cash-out refinance based on the subject property's new appraised value once you've been on Title for 3 months. That way you don't have to wait the 6 months before being able to access that equity. I would just double check that you're not too overleveraged currently with the HMLs you have on the properties, especially since they're already renovated and you won't get the benefit of added sweat equity once the refinance comes. If you don't have enough equity in the property during the refinance process, you may have to switch to a rate/term refinance (assuming you won't be getting any cash-out) and potentially bring in some extra cash at closing to pay off the current HML. Best of luck!

 Hi Glory,

There are tons of DSCR lenders here on BP. Shop around and see what some lenders offer and their costs. Keep in mind, you'll get what you pay for in terms of service. The headache and delays may not be worth the risk of losing your EMD (or your hair) for the purchase transaction if the lender can't perform. Do the research and make sure anyone you're thinking about working with can get the job done. Best of luck!

 Hi Diane,

What type of financing are you looking for and what is your RE investing strategy? That can help differentiate the types of lenders that would be able to help you out. Best of luck!

 Hi Saika,

I don't know if ARV can ever come back too high on a refinance... I would think you'd want it as high as possible! Having the ARV come back higher is great in that it provides you with options. You can take out more equity than originally planned (if you can handle/qualify with the increased payment amount) or you can take out the amount of equity that was originally planned at a potentially lower rate (assuming there is a moderate drop in the LTV%). Higher ARV gives your more opportunities but lower ARV limits your possibilities.

Hi Stephanie, I've seen DSCR programs that allow cash-out refinancing on the property's new appraised value with only 3 months of Title seasoning and minimum property values of $75K required. Seems like this scenario could fit if that's the type of financing you are looking for. To answer your question, you should always shop around and research different lenders to see what they can offer. Many RE investors are in your same shoes and can sometimes have difficulty finding financing for their properties lower in value or when they haven't owned the property for that long.

 Hi Zachary,

The cash-out refinance should be based off the NEW appraised value of the property ($200K) after the lender's specific title seasoning period ends. Typically 3-6 months after the purchase. Curious, why are you capped at 65% LTV for the C/O refinance? Seems a bit low unless there are other factors playing into that. 75% C/O is standard right now. Shop around and see what other lenders can offer. It helps to have options with this type of strategy.

 Hi Matt,

Congrats on your new duplex purchase! Most if not all DSCR lenders can lend nationwide, giving you a wide array of different products to choose from. Each will have their own set of guidelines and requirements but the general qualification metrics are the same - good FICO score and the property projecting to cashflow each month. DSCR lenders generally lend on 1-4 units, with some actually being able to go up to 8 or 9 units. Once you're past that point, you'd have to look elsewhere, with a commercial lender perhaps. I'd recommend doing some research on some different lenders in the Build Your Team tab above or even other people who respond to your post and reading the reviews left from other Bigger Pockets users themselves.

Hi Nick, the loan officer should be able to get you some type of term sheet or quote that shows the different costs associated with that specific loan and scenario. Every private lender will have different costs associated with getting the loan, which can depend on factors such as LTV, FICO, property type, etc.Private money lenders are almost always more costly compared to a traditional bank because there's much less paperwork/due diligence involved. Private lenders offset this risk by charging more. There will always be costs when completing any type of RE financing. This includes the C/O refinance once you complete the rehab. For example, there'll be costs for Title/Escrow, lender processing/closing fees, and even origination fees.