All Forum Posts by: Daniel Hilpert

Hi David, if your property is over 5 units, there are still several lenders that are active. Rates can be as low as 3.50% depending on several factors. Dan

Freddie needs to see minimum liquidity of about 10% of the loan amount (there is room to negotiate) and more than one property under ownership and management. Agencies need up to 12 months of P&I reserves at the moment.

Hi John, I would subscribe to your local court's newsletter on the court's website. They post updates on when courts are opening up. Every state is different, but I expect most courts to open up by June 01/15. The opening of the courts is generally a good litmus test for when the eviction moratorium is going to be lifted. I doubt municipalities will extend the moratorium beyond that date. Dan Hilpert

Hi Greg, obtaining agency financing (Fannie/Freddie) is relatively easy once the property is leased and stabilized. You need to show 90 days of income. The agencies have a small loan program so this is a perfect fit. The small loan program has more flexibility and lower closing costs. Personally, I like the fact that with the small loan program you can structure a flexible prepayment penalty.

As it relates to construction, I would not go with FHA financing. Closing an FHA loan takes several months and you need to use prevailing wage. There are some other drawbacks. I would take this to a local community banks. The leverage will be lower but in the end it's a better deal.