All Forum Posts by: Connor Hibbs

Hi All,

I've noticed that a lot of lenders have pulled away from 5+ unit properties and Mixed-use properties, particularly when it comes to long term financing. I know that LTV's are significantly lower for these types of properties than for 1-4 units, but if anyone has any recommendations for direct lenders it would be much appreciated.

Hi Michael,

A reason why the square footage may not have been included is if was not "finished". unfinished areas or attics, or areas only accessible through unfinished areas will not typically be included in the square footage. It could be that the property had the lower level finished since the last appraisal was done, but the only way to get this confirmed is to have a licensed appraiser go out and assess the property in person.

Hi Tomas,

Like a few before me had mentioned, going through a wholesaler would be a good idea for you with having a good tear down and remodeling team. They tend to find the worse for wear properties at the lowest prices, so if you're looking to do heavy rehabs that's a good starting point. speaking with other flippers in the area or real estate agents would help give you the best idea of what you may be looking at for ARV's and rents if you planned on holding any of your properties.

I'd also recommend looking up a local Real Estate Investors Association (REIA) as they'll have local investors that you can bounce ideas off with.

There are a few lenders that come to mind for loan sizes under 100k, but the main thing with most national lenders is that they will be looking an as-is value of at least 100k for DSCR loans. As long as the property has good cash flow then you should be able to get a decent rate, although I do know that with many of those lenders that there will be a rate increase to reflect the lower loan size.