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All Forum Posts by: Daniel Baccarini II

Daniel Baccarini II has started 0 posts and replied 27 times.

Without knowing the terms of the business line of credit, I would recommend option 1. It is going to represent your best option for getting the max amount of funds for your next property. As others have mentioned, you can pay that line of credit down/off when needed too. 

Quote from @Aaron Gallington:

If i do wait, do DSCR rates typically/generally move down when fed rates lower like a conventional rate does? Not too familiar with DSCR.


Rates will drop but it's not directly correlated to what the Fed funds rate is. If you want to track what DSCR rates are doing, I would follow the US Treasury yields specifically for the 5 and 10-year treasury. If you aren't in a hurry, you can afford to wait a little bit longer.

A few other responses mentioned that your closing costs are a little high. Are you paying more in origination costs in exchange for not having a prepayment penalty?

Hi Romie, I have a lender that waives their seasoning period if you have done a renovation of at least $10k to the property since taking ownership. Depending on the amount of work that you've completed, you might have an option. 

Post: Foreign investor looking for DSCR loan 70%LTV

Daniel Baccarini IIPosted
  • Lender
  • Posts 30
  • Votes 8

Hi Salvatore, 

Based on my experience, there are lenders that can go up to 70% LTV but the purchase price is going to be too low to meet their minimum loan amounts.

Post: Best Lender To Get?

Daniel Baccarini IIPosted
  • Lender
  • Posts 30
  • Votes 8

Hi Nolan, 

Are you planning on living in one of the units of this property or will this only function as an investment property?

Hi Pat,

I'm not an SBA lending expert so I'm unsure if the scenario you're proposing would work or not. Regarding rates, SBA tends to lend at the prime rate plus a spread on top of that. The current prime rate is at 8.5% to give you an idea of the starting point. A local bank or credit union could offer a lower rate than that in the mid-high 7's. A ground up construction loan is going to be interest-only in the low double digits (10-12%) depending on credit and experience. 

There isn't really a magic bullet in today's rate environment. It all comes down to the numbers that you are putting together on your end, and if the monthly payment would allow you to still cashflow or at least breakeven in today's environment with the intention of refinancing down the road when rates do eventually come down.

Post: Loans under 100k?

Daniel Baccarini IIPosted
  • Lender
  • Posts 30
  • Votes 8

I'll second what Logan said, Christopher. I would recommend a property where the total loan amount will be north of $75k. 


Would this be your first investment or do you have some prior experience?

Hi Derek,

I'll echo what some of the other posters have said previously. The rate seems typical given the lack of GUC experience. The points are a little high, even if you are working with a broker, and the fixed monthly payments isn't what I see for most GUC programs. 

Are there any mitigating factors: loan amount, credit score, location, etc...?

For DSCR loans, it's going to be all about what the properties are currently generating in rental income. Taking a loss for the year and what shows up on your tax returns isn't taken into consideration by underwriting. If they are cashflow positive (over a 1.0 DSCR), then that's a good starting point.