All Forum Posts by: Charlie Gonzalez

Does anyone have past deals that they would like to share? Would love to see before and after pictures of an investment property along with the associated rehab costs. Any other info along with it would be much appreciated. Thanks!

I have many on my site, ( I have done about 1k renovations out there ) what is it you are trying to accomplish?

Hey Bob! What hurdles did you see most when starting out? I will be doing my first ever BRRRR soon. So looking for some tips from people who have don it before!

0 Votes

Cleveland, Ohio

Quote from @Luther Epperhart:

Quote from @Erik Estrada:

Quote from @Luther Epperhart:

I will be soon finishing up two builds on STRentals, under my LLC, in the Smokey mountains I used a hard money loan for. The appraised value after the build will be about double what I will owe the hard money lender. I want to cash-out refi with a DSCR loan. Conventional will not work.
I need to cash-out 75% LTV to have $ for future projects and furniture. My two issues are,

will a DSCR Cash-Out Refi lender take the projected LTR rate or can we do comps for the STR rate? The LTR rate is much too low, but I am in Gatlinburg, so it's a common thing to build assuming STR.

also, will the lender need any seasoning period? I need to get the money as quickly as possible to furnish the rentals and don't want to loose any time as I already have land picked out for the next projects.

Answers/suggestions or recommendations to DSCR lenders/brokers than can help me are greatly appreciated.

Hey Luther,

When it comes to STR's most DSCR lenders will require 6 months title seasoning to cash out on the appraised value. A handful will do 90 days as long as you can show you have completed significant renovations.

There is no seasoning requirement on a rate and term refinance. (No cash out, just payoff the hard money loan)

Some lenders will go up to 75% LTV, but majority will be at 70% LTV. Also there is a couple of options that allow you to finance fees onto the loan amount if you are tight on the cash to close.

Many lenders will require a short term market rent appraisal and some will only use 75% of the rents, others will not. Additionally most lenders will require that you have managed an STR in the past 12 months, or show that the property has 12 months of short term rental income. A couple do not have this requirement.

Erik,
Thanks for all this info. Tbh, I do not have 6 months to spare after the build is completed. The build started in March, but will not be finished until next month. I need to refi as soon as the build is done. I have completed significant renovations since this was a brand new build from ground up.

Rate and term will not help me in any way, it HAS to be a cash-out refi.

I have worked with a cash-out refi DSCR lender before that did 75%, but it was not a brand new build.

I have over 3 years experience is STR. I own other properties and manage them myself under my LLC.

Hi Luther, this is very good knowing you have STR experience. Helps out a lot in the eyes of lenders. I work for a nationwide Non-QM lender and we have a niche in STR's. We can go DSCR and qualify off the appraisal with the STR rent schedule (make sure to request from the appraiser). We require at least 3 months seasoning to cash out. Most lenders require 6 months though. That is the standard. Please feel free to connect with me and I can give you more information.

0 Votes

Knoxville, Tennessee

Quote from @Lorien Rollins:

Thanks, Wyatt!

Charlie, I'd be happy to hop on a call or send via email as it could get lengthy. I have extensive NC lease knowledge. I've used NAA leases for over 7 years now, and have a lease in place for my own LTR. Feel free to connect so we can go over specifics!

Artfully,

Lorien

Thanks so much Lauren! Sent you a connection request. I would definitely love to hop on a call and get your input!

0 Votes

Charlotte, North Carolina

Quote from @Iris Olivas:

Hello!

I am wondering if anyone out there knows or does DSCR loans for a single property selling for under $100K? I have my eye on two properties. One is a 4-plex for $165K with good cashflow (CoC ~16%). There is another property that looks very good too, selling for $85K, turnkey, that would be about 16-18% CoC. I would love to be able to bundle them into 1 loan, but have not found a lender who can loan on a single property under $100k, even when bundled with the other one. Does anyone have any leads or insight on how I might be able to acquire both properties? I have enough down payment and can get a DSCR for the 4 plex, but would not be able to swing the other, even by itself. Thanks for your help!

Hi Iris, I work for a nation wide mortgage lender and we do DSCR loans as low as 75k. Please connect with me and we can talk!

1 Vote

Billings, Montana

Hi Steven, I shot you a message to connect. Hoping I can help you out here!

1 Vote

Charlotte, North Carolina

Good afternoon BP,

Looking for legal advice for lease agreements when doing a lease option sandwich in Charlotte, North Carolina. I plan to use the North Carolina lease agreement provided by the BP pro membership. I will most likely have an attorney review it once I have filled it out to the best of my ability when I find a tenant. Then I can use the same advice moving forward instead of having to pay an attorney every time I draft up a new lease.

My question is: Are there any provisions or verbiage I should be adding into my NC lease agreement?

Any advice and recommendations are appreciated.

1 Vote

Charlotte, North Carolina

Quote from @Adam Zach:

Quote from @Charlie Gonzalez:

Good afternoon BP,

I am a new investor starting out my business model with lease option sandwiches.

My question is: how do I determine the future value/purchase price of a home when structing the lease option sandwich agreement? Is there a tool I can use to propose a future value? Or would a realtor have better insight on this matter? I would rather not just propose a random future purchase price.

Lastly, how am I able determine the future purchase price I have with the seller, and the one I have with the sublessee/tenant buyer?

Thanks and please let me know!

Could be based on a future appraisal price, get an appraisal. The big companies like Home Partners of America do a 9% increase year 1 followed by 5% increases each year after that (note they are in top 40 metro markets).

Thanks Adam! Much appreciated. What websites, aside from BP, do you like to reference when finding the hottest metro markets in the U.S?

0 Votes

Charlotte, North Carolina

Thanks so much Mike! Great info. In your opinion, what is the best way of determining the future purchase price in a lease option sandwich scenario? How would I know if I am offering too low or too high of a price?

0 Votes

Charlotte, North Carolina

Good afternoon BP,

I am a new investor starting out my business model with lease option sandwiches.

Lastly, how am I able determine the future purchase price I have with the seller, and the one I have with the sublessee/tenant buyer?

Thanks and please let me know!

0 Votes

Charlotte, North Carolina

Great post!

0 Votes

Philadelphia, Pennsylvania

All Forum Posts by: Charlie Gonzalez

Charlie Gonzalez has started 10 posts and replied 60 times.

Post: Examples of a rehab

Post: DSCR Refi with a less than ideal LTR rate, but perfect STR rate?

Post: Legal advice on North Carolina lease agreements

Post: Does anyone do a DSCR loan for a single property under $100K?

Post: Moving out of my primary home to rent in a new area, sell or rent my primary home???

Post: Legal advice on North Carolina lease agreements

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: Pros and Cons of Different Financing Options

Charlie Gonzalez has started 10 posts and replied 60 times.

Biggerpockets Logo Post: Examples of a rehab

Biggerpockets Logo Post: DSCR Refi with a less than ideal LTR rate, but perfect STR rate?

Biggerpockets Logo Post: Legal advice on North Carolina lease agreements

Biggerpockets Logo Post: Does anyone do a DSCR loan for a single property under $100K?

Biggerpockets Logo Post: Moving out of my primary home to rent in a new area, sell or rent my primary home???

Biggerpockets Logo Post: Legal advice on North Carolina lease agreements

Biggerpockets Logo Post: How to determine future purchase price of a home when doing a lease option sandwich

Biggerpockets Logo Post: How to determine future purchase price of a home when doing a lease option sandwich

Biggerpockets Logo Post: How to determine future purchase price of a home when doing a lease option sandwich

Biggerpockets Logo Post: Pros and Cons of Different Financing Options

Post: Examples of a rehab

Post: DSCR Refi with a less than ideal LTR rate, but perfect STR rate?

Post: Legal advice on North Carolina lease agreements

Post: Does anyone do a DSCR loan for a single property under $100K?

Post: Moving out of my primary home to rent in a new area, sell or rent my primary home???

Post: Legal advice on North Carolina lease agreements

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: How to determine future purchase price of a home when doing a lease option sandwich

Post: Pros and Cons of Different Financing Options