All Forum Posts by: Dennis Muno

is it legal to become a  mortgage broker to fund my own investment residential deals? I do not want to pay broker fees. Looking to save money especially with Hard money lenders. 

I have two properties, one a commercial building for auto repair, the other is a mixed use building, commercial retail on the bottom floor and 2 residential units above ( this building is currently out of service needs full reno). Both properties mortgage free

I approached a bank for a line of credit on the auto repair building and a construction loan for the mixed use building. 

The bank told me their desktop underwriting flagged my mixed use building as a hazardous space but not the auto repair building. So now the bank is requiring me to do a 21e on the mixed use building but not the auto repair building. 

This is beyond me because I would think the auto repair business is more of an issue environmentally. However they are telling me because there was a dry cleaner business at the mixed use building in the past there could be soil contamination. 

With that, I am considering not getting the construction loan and putting the building back in service with private money. Then approaching perm loan lenders after completion. Will perm loan lenders look for a 21e?

What is the best way to get funding for an upcoming Foreclosure Auction sale on a property?

I know a typical loan is out the door. 

Greetings! 

My partner and I visited Detroit MI this past weekend and found 2 deals:

TRIPLEX for $50k with ARV of $130k with one unit already rented at $1000 & the other two needing about $30k to rehab. Address is 13000 Plymouth Rd Detroit, MI 48227.

DUPLEX at $75k. Duplex, ARV $100-$127k both units empty, one is ready to rent and the other needs about $15k rehabs rents at $1200 per unit, per our agents MLS info. 12190 Santa Rosa Drive, Detroit MI 48204.

We've been trying to get a DSCR Loan but keep hearing the purchase amount is too low. Any suggestions?

Greetings! 

My partner and I visited Detroit MI this past weekend and found 2 deals:

TRIPLEX for $50k with ARV of $130k with one unit already rented at $1000 & the other two needing about $30k to rehab. Address is 13000 Plymouth Rd Detroit, MI 48227.

DUPLEX at $75k. Duplex, ARV $100-$127k both units empty, one is ready to rent and the other needs about $15k rehabs rents at $1200 per unit, per our agents MLS info. 12190 Santa Rosa Drive, Detroit MI 48204.

We've been trying to get a DSCR Loan but keep hearing the purchase amount is too low. Any suggestions?

Hey all, I've spent a lot of time analyzing properties as potential BRRR deals, however, I've found a 4 family that I'd be happy just putting a down payment on and letting it cashflow right away with no short term refinancing or sale strategy. Obviously in general I'd expect to put 20% down but I'm wondering if there are options that would be less, like 15% - also does it make sense to seek out a local bank/credit union for better terms? Or are most lenders pretty similar with regards to these traditional products?

Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?

Hey BP! 

I need resources and/or advice on the direction to take when it comes to grabbing equity out of my small residential portfolio. A couple of items I would like to accomplish but not sure if it is too much of a ask. 1. I need cash-out. 2. Would love for it to be under one commercial loan through LLC so my personal credit is not associated with it. I am open to keeping my current loans in place and doing some sort of HELOC on one or all my properties top grab the equity but that does not accomplish the commercial loan portion. Like I said, not sure what exactly can be accomplished.

The details: Five residential properties consisting of 10 units. We are doing a mix of LTR and STR. Last year without STR we grossed about $120k on 6 units. This is with me living in one unit and my mom living in one unit (Thank you real estate for allowing me to get my mom living for free and retire her!!) and 2 of the STR units not coming online and ready yet. I am moving and and we have 3 total STR units going now so our anticipated gross should be around $180k for 2023. I currently owe about $1.3m. All 5 just appraised in the last 30 days a combined $2.2m. I currently work a W2 job and bring in a little over $150k per year.

The struggles: 3 units are STR so the revenue of course can fluctuate. 1 units we have 6 months worth of data to prove revenue. The other 2 units we only have 3 months to prove revenue. I know banks are not in love with this. Another struggle is my utilization is screwed because I did not have a W2 at all in 2022 ( thanks to house-hacking and frugality lifestyle) and until May of this year. My credit is not longer at my normal 750. We maxed out two 0% credit cards to finish up our airbnbs and without a job this does not look good on credit.

In my mind this seems like an easy win for a small bank because the cash-out will be used to pay off credit cards from real estate remodel and buy more real estate which they can then loan on. This seems to be not so easy outside of my mind and finding a bank willing to help. BP community, Whatcha got for me??!?!