All Forum Posts by: Brent Shryock

@Mike Dymski good point about the DSCR. Under Freddie Mac program, It's 1.20 For top markets 1.25 for standard markets ,1.30 small markets and 1.40 for very small markets.

@Bruce Petersen is that a fixed rate or floater?  

@Jason Hirko remember we are underwriting the real estate first.  as long as your Certified PFS shows the liquidity and networth you should have no issues.

@Todd Walker the documentation is merely bio/resume outlining the info you stated above.  It's nothing too complicated or in depth.

Experience is a huge factor if your going to try and self manage.  You won't be able to self manage with limited experience. Also, If you are not local to the asset they will want a 3rd party management company.  

This property will qualify for Agency debt,(FannieMae/Freddie Mac) provided occupancy is strong. Typically greater than 90% for past 3 months.  

Freddie mac has a great Small Balance program for loans $1-6 Million. The LTVs will range from 75%-80% depending on actual location.  There are several different options from 5/7/10 year fixed rate and floating hybrid options.  All are non recourse, 30 am.

To qualify you need multi experience, 9 months debt service liquidity, net worth of at least the loan amount and credit score of at least 650.

PM me if you would like to talk further.

This is only through what I have seen from my borrowers, not personal experience.  I have seen my borrowers pay anywhere from anywhere from $50-$125 a unit for a due diligence inspection depending on the scope of the work.

Also, if you are planning on financing the property the lender is going to require a PCA report during the final underwriting.  On a property this size the cost of a PCA will be most likely around $3500-$4000.

What is the size of the property?

From a financing prospective, 2100 a unit on a 60s vintage product is way low. (We typically see upwards of 60% on the expense side in this aged property).  Go ahead and add Property management fee of at least 4%.  What about employee salaries and benefits etc?  Replacement reserves? Check the taxes as well.  

PM me.  Im in North Florida and may be able to help.  

portfolio lenders simply means the lender keeps the loan on their books or balance sheet.  Banks, Credit Unions, insurance cos. etc ...are considered portfolio lenders and require min equity of 25%.

 If they need some quotes on non recourse agency debt, let me know. :)