All Forum Posts by: Deborah Wodell

Hi Joshua,

Most lenders cap their financing at a certain LTV because they expect the borrower to have some skin in the game. If covering the remaining 10% is a challenge, one option is to bring in a JV partner who can fund the gap in exchange for a share of the deal. This way, you can still move forward without needing to put in all the capital yourself.

But if you're needing the remaining 10%, what will you bring to the table? Whether it's experience, a strong deal structure, or another resource, lenders and partners will want to see how you're contributing to make the deal work.

Hope that helps!

We can do DFW! Sent you a message if you'd like more options! 

Great question! When it comes to down payments for duplexes, As others have mentioned, with a DSCR loan, 20% is a common minimum for duplexes, and 25% is typical for tri/quadplexes. having bigger dp can get you better terms.

I sent you a message!It's possible but the rates would be high. And you'd need to meet requirements and the numbers would need to work. I'd like to discuss some options. 

Hey Andrew, for a 12-unit property, traditional lenders like Fannie and Freddie could be great options, especially if it's stabilized with a strong upside. If you're looking for more flexibility, there are also other commercial and multifamily lenders that could work well with your needs. It's always worth comparing rates and terms, as some lenders might be more aggressive with loan-to-value ratios, depending on the location and property condition. Also, a few private lenders or hard money lenders might have some more creative terms for multifamily, especially if you're open to considering that route.

Hi Laura, it sounds like you're getting back into a great rhythm with your investing! For smaller deals like owner finance options, it's important to build a strong relationship with the seller, as this often leads to more flexible terms. If you're focusing on rural properties, sometimes local community banks or credit unions are open to these types of deals. Also, a lot of sellers might be more willing to finance the down payment if they know you're committed and have a clear plan for the property. Good luck with building your portfolio again!

Hi Dwight! Funding for mobile homes and abandoned parks can be tricky, but there are definitely lenders out there who specialize in these types of properties. For mobile homes, it often depends on whether the property is considered real estate (attached to land) or personal property (if it’s not). For abandoned parks with infrastructure, some lenders may consider them as long as there’s a plan for the rehab and the infrastructure is in good condition or can be repaired. It’s all about finding the right lender with the experience in these types of unique deals.I sent you a message!

Hey Mary! I’ve seen a lot of investors compare hard money lending to traditional commercial financing, and one big difference is flexibility. Hard money lenders are often more willing to take on higher-risk projects and offer faster closings, but the trade-off can be higher interest rates and shorter terms. If you’re working on a time-sensitive flip or renovation, hard money could be ideal. On the flip side, traditional financing typically offers better rates and longer terms but can take longer to close, and you’ll likely need stronger financials.

If you're trying to balance speed with cost-efficiency, it's worth considering your project's needs and how quickly you need to get funding. If you're working on a long-term hold, DSCR loans or other commercial loans may be better for you.

It sounds like you've been through a challenging process, but it's great that you're continuing to build your portfolio! For your refinancing needs, there are definitely lenders out there who specialize in DSCR loans for investors. It's all about finding the right fit for you and your long-term goals.

Hi Donyea,

Great question! For DSCR loans, the property doesn't have to be "turnkey." It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service. However, some lenders may have requirements regarding the property's condition or completion status.