All Forum Posts by: David Bilandzija

@Rahnesha White  Here's a simple calculation you can make to help with your decision...  take the cost of the buy down and divide by the amount saved each month over the par rate.  The resulting number is how many months it will take to break-even on the cost of the buy down.  

Using numbers from the 25% down option would give you this break down:

Loan Amount $54,750 

6.061% - $330 mo/payment  

5.875%  - $324 mo/payment  -  $6 dollar/mo savings at a cost of $331.79

Here's the math on the break even for the buy down:  $331.79 /  $6  =  55.29  months to break even  

Good luck!

Shucks, timing doesn't work for me on this particular meet up.  Catch you all at the next one.  Looking forward to meeting some like minded investors and real estate professionals.  

@Abraham Shamosh I agree with the other comments - credit is a factor.  Once you secure financing it is unlikely the mortgage will get reported to the credit bureaus.  It is common practice for lenders not to report mortgages to credit in business purpose/commercial loan space.  Good luck pumping the score up in the meantime.

Sorry to hear about your situation. 

Sounds like the seller/seller's realtor possibly misrepresented the facts.  They could be liable but that will be something for the courts to decide.  You may want to consult with a real estate attorney.   

@Hoa Nguyen  Look up "acceleration" and "due on sale clause."  You'll find your answer.  Be very careful and seek professional legal advice.  Good luck.  

@Cory Anderson From a leverage perspective, DSCR loans aren't as effective nowadays. Higher rates = higher payments = less cash flow = more difficult to get max leverage. They still serve their purpose. Realistically, that usually happens at a lower leverage or in markets where rents are higher relative to value.

"No Ratio DSCR" loans can be a strong alternative if getting a higher LTV is your goal. Rate is generally higher but the tradeoff makes sense for some.

@Sergey A. Petrov Sounds like a reasonable approach and I think your suggestion is worth checking out with the borrower's bank. Thank you for the response.

Hi BP,

I'm representing a borrower in FL and we are at clear to close on his cash out refinance loan (investment property). We cannot close because he wouldn't be able to cash the check for his cash out proceeds. The check cannot be made to him individually since property is held in a Trust. Borrower doesn't have a business bank account that matches the vesting on title, which is ABC LLC as trustee for ABC Trust.

His LLC and Trust both do not have EINs.

He is running into resistance from banks they are explaining that an EIN is required. 

Has anyone experienced this and or found a workaround?

@Adriana Balley

There are several lenders in this space. Finance of America Commericial being one of the stronger players. Non-qm lenders can also provide the kind of financing you are after with similar underwriting. Key thing to remember, is all DSCR program aren't created equal. Cash flow, credit profile, investing experience/current holdings, real estate market etc. are all factors in determining the best fit for your situation.

@Damion Brown I know of a nationwide direct lender with a foreign investor program. The requirement is basically having the down payment in a US bank. Don't need to close in a LLC or have any experience either.