All Forum Posts by: Dennis Muno

I purchased my first investment property back in February, it has now been 6 months and I want to cash out refi into a conventional loan. Anyone has recommendations on a good lender? I've been quoted 8.25% with 4 points.

Also, can I even cash out refi in 6 months or is it now at 12 months? I'm hearing different things.

Hello Jose,

You can cashout after 6 months usually.

0 Votes

San Antonio, Texas

Quote from @Marc S.:

Hello,

I am currently in the process of putting an offer in on a SFR in Celina, TX. Are there any banks out there I can get a portfolio loan on to negotiate a better rate than going through a bank using Fanny / Freddy?

Depends on the lender and also the loan amounts, location of ppts, etc, if a portfolio loan will be possible

0 Votes

Quote from @Brad Woods:

Hello Everyone, I would like some help being shown the right direction on finding someone to fund a construction project. I have owned an Automotive Repair Business since 2015. I am to the point where I am tired of paying rent to for the shop we currently operate out of. I have found land that I would like to purchase under my real estate investment company and build a new shop on that property. I would like to find someone that would fund the land purchase/building project. (10-12 months project time). After the build is over I would get a conventional loan (appraisal value will be way higher than build costs) to pay back the funding. I want to do all of this under my REI company and have my other business pay rent to my REI company to help grow my REI portfolio. I will be happy to go into greater detail about the project with an interested party via private message. Thank you for your time reading this and I hope I get pointed in the right direction to make this project happen.

Do you have some investment experience(building, buy and flip, buy and hold) in the last 3 years? This will influence the amount of lenders you speak to that will be willing to help you.

A bridge loan interest only(12-18 months) would the way to go. You'll get funding up to 65% LTV or LTC of the completed property to complete the project. Lenders will want to know what your building plans are as well as if you'll be able to make the interest only payments. After the 12-18 months the loan will need to be refinanced to pay off the bridge loan.

0 Votes

Western NC, North Carolina

Quote from @Matt Greenfield:

Hello!

I am thinking about using a HELOC on my rental property and the company I spoke to said that the minimum LTV they would lend on a HELOC is 80%. Perhaps I am misremembering, but I believe I heard a friend say that you can use HELOC in some cases to access funds up to 95% LTV. I know the typical LTV amount for term loans is 80%, but can you access further equity using a HELOC that is more than 80% LTV? Does this LTV limit change if it is a HELOC on your primary residence or rental property? Does the minimum LTVs change based on the intention for those funds?

So usually for HELOCs, the max combined loan to value(Mortgage+HELOC) allowed is 85%. HELOCs on rental properties 2 units or more are not the most common for lenders as many balk at HELOCs for multifamily rentals

0 Votes

Quote from @Shanna Gregory:

Hello, I am new to investing. I currently own a home and have acquired some equity and I am looking to take out a HELOC. The plan is to either use this HELOC to buy a property outright for about 30K-50K, rehab it myself and either sell or refinance/rent or I can take the HELOC and use it as a down payment on a more expensive home in a better area that I plan to flip. My question is, Should I use my HELOC for either one of these scenarios and would one idea be better than the other? Thank you in advance for your help.

Hello Shanna,

I would recommend that if you are going to to take money out of a HELOC you buy a property that will cashflow well. I don't know how much a 30-50K house would rent for and even more cashflow(after expenses).

I'm sure if you use the HELOC money for downpayment on a 2-4 unit property that cashflows, the tenants will pay the monthly PITI(principal, interest, taxes and insurance). After a while(6+ months) if you have equity you can pull out of the property you can use that to payoff the HELOC and if there's some money left you can use some of the equity pulled out that remains for downpayment+closing costs for a second property

1 Vote

Atlanta, Georgia

Quote from @Larry Pruitt:

Hey guys,

I was contacted by a mortgage broker offering a real estate investment loan to purchase multifamily properties. He said that the loans offered have no upfront fees and the origination loan fee is taken out of the loan at closing. He also said that he can fund 100% of the building value. It sounds like a scam but I don't know. Has anyone used a loan like this before or has any experience dealing with this? Does it actually work? Thanks in advance to all responses.

If it sounds too good to be true, it is too good to be true. For every loan if you don't have any skin in the game that sounds suspect or you will have absolutely insane charges.

Ask for a loan estimate at the least. Let him at least show you a loan estimate

1 Vote

New York City, New York

Quote from @Charles Foriest:

I have raw land - 1.5 acres (commercial lot) in Houston, TX and I am considering what to build on it. I'm leaning towards storage units, however, I do not know much about this and will welcome suggestions on how to go about funding, construction from ground up for single or multi story units and systems to have in place for successful operation. I'm also thinking about partnerships such as equity partner or JVs.

Any thoughts and ideas are welcome!

To do that, you'll need to have a plan of what to do/build. An overly simplified way(not as simple; will take months and money) is to: Get a general contractor to create a budget and building plan; work on getting permits; get environmental done, re-zone if need be/possible; feasibility study; see how much cash you will have to deploy and then seek lenders for lending offers.

There are way more steps but at a minimum these are some .

Since you are looking to build,A bridge loan(interest only)/private money loan for a storage unit or a ground up construction project. This will help you get an interest only loan that will give you money for your construction. It's usually 12-18 months. By the end of the term, you will need to refinance your bridge interest only loan into a long term loan .

0 Votes

Houston, Texas

Quote from @T Brian Nauheim:

Are there any? Everyone seems to say no with acreage?

Are you buying the property(house+land) for buying only? Or are you buying the property to do some more building? 39 acres is a lot and I'd assume you seek to perhaps build more on the land??

Private lenders will want some return on investment on money lent and if just for purchase(39 acres+ land) it may explain why you've had trouble with private money lenders. If it's for purchase with the plan to build some more on the property you'll likely have more lenders willing to assist

0 Votes

Portland, Oregon

Quote from @Matthew William:

I am looking for a private lender, preferably in Ohio, to run my numbers to see what I’d qualify for and/or what I can do to improve. Possibly for purchase or investment.

Also open to public and commercial. Any suggestions?

Hello Matthew,

Private money lenders will vary from private lender to private lender. How much the lender will offer in $ amount, will depend on your experience, FICO, type of project and return on investment the lender sees they can have.

I will recommend you keep your options open and look at commercial(if 5 units or more) or DSCR if looking to buy only with no rehab

0 Votes

Columbus, Ohio

All Forum Posts by: Dennis Muno

Dennis Muno has started 1 posts and replied 324 times.

Post: USDA Construction Loan for Multifamily

Post: Looking for a lender in TX for Cash out refi Conventional loan

Post: Portfolio Loan possible?

Post: Construction Funding Needed

Post: HELOC Minimums for LTV and Do the Minimums Change If Primary or Rental Property

Post: Help! Should I use a HELOC to buy my 1st Investment Property

Post: Real Estate 100% LTV Loan

Post: Investing in storage unit

Post: Private Lender for House with land(39 acres)???

Post: Looking for lender