All Forum Posts by: Dennis Muno

Hello,

I am in the process of securing a construction loan for a 550 square feet ADU which will be built on my primary residence.
I was hoping that you could help provide some leads on some good lenders that I could reach out to.

Thank you in advance for your help!

Andy

Hello Anudeep,

So for the ADU, do you plan on renting it out after it is completed? Will there be tenants living in it after you are done?

Do you have investment experience(owned any rental properties, bought, sold, bought and flipped, fixed and held as rental) in the last 3 years with your name on title? Most lenders for these loans will want to see some sort of experience. Construction lenders will usually also ask you for an itemized budget.

Given that it will be built on your primary residence will raise some eye brows if you are looking for investor financing.

The big question is will the ADU be rented out(it sounds like it)

0 Votes

Los Angeles County, California

Quote from @Chris Mercado:

Hey there everyone. Looking for answers on lending or construction loans to build 2 separate duplexes on my property. I have a single family on almost half an acre; in a prime location near colleges, hospitals, and downtown area. Don’t want to be steered into the wrong direction or end up getting screwed over by shady companies. Appreciate any feedback, thank you very much.

Hello Chris,

You'll want to make sure you have the following before you reach out to a lender. For projects like these lenders will ask you for this info:

1. Experience in the last 3 years with your name on title(building, selling*,buy and rehab, fix and flip, etc)

2. Building plans and permits ready or in the process and close to receipt

3. Your income and bank statements will be checked to make sure you or partners(if you have partners in LLC) can make monthly interest only payment

4. LLC documentation- operating agreement

5. General contractor who will do project.

6. Exit strategy- what will you do after building duplex(lenders will need an answer)

These are just a few that come to mind that lenders may ask

1 Vote

Sacramento, California

Quote from @Dustin Taylor:

Any lenders offering HELOC's on investment properties? Are any of these options a fixed rate?

Any lenders offering interest only loans?

Any lenders offering 5% down payment for a hard money loan on the right property?

Hello Dustin,

So HELOCs on investment properties are hard to come by either due to laws in some states or just the perceived risk by lenders. A home equity loan may get you some lenders who may be willing to take a loot.

Hard money loans are generally interest only during the loan during and then need to to be paid in full at the end of the loan period. Hard money would only go for properties that need some rehab or maybe for construction

For interest only loans you could do a DSCR loan to purchase an investment property, usually 1-4 units with some lenders who also offer interest only options.

0 Votes

Atlanta, Georgia

Quote from @William Lu:

I live in California and found an off market deal for a commercial property in a different state. I plan on renting it out.

However, I am having trouble finding any lenders.

*BoA says they don't do commercial loans for commercial investment properties, only for businesses.

* I tried contacting a local mortgage broker, but she didn't find anything .

* Local credit union is out of the question because I don't live in that state.

Any tips on finding a lender would be much appreciated.

Hello William,

What type of commercial property is it?Is this a purchase or refi? How many units? Will the property need rehab? Is it in good condition? From what you say it sounds like the property is not occupied.

That will affect things like your financing options you get with any lender you speak to.

0 Votes

Columbia, South Carolina

Quote from @Ryan Faircloth:

North State Bank offers a 85% LTV commercial cash out refinance after a 6 month seasoning period with great credit/financials at reasonable rates with very low application/origination fees. I am looking for another bank that will do this. Even 80% would be acceptable.

Can anyone point me in the right direction?

85% LTV cash out refi on a commercial property in this market? This sounds a little too good to be true if you ask me. Did the bank get information from you like the NOI and current value, insurance, occupancy, LLC information, etc? All these info will affect how much you can pull out of ppt.

If you didn't give them any such info you may be getting bait and switched. I'm not saying they are lying I just wonder how they say they can do that if they have not gotten any info from you. So, the question is did they get any other information from you??

0 Votes

Raleigh, North Carolina

Quote from @Patrick BlackRock:

I trust this email finds you all well. I am a property owner in San Antonio, TX, with an income-producing Airbnb that has demonstrated exceptional performance for over a year. I am interested in exploring the possibility of a HELOC against this property to facilitate the purchase of a warrantable condo in Gulf Shores, AL.

Hello Patrick,

So I think in TX you can't do a HELOC on an investment property. A Home equity loan **may** be possible but not all lenders will be happy to do that

1 Vote

San Antonio, Texas

Quote from @Derek Simkins:

I am badly wanting to get out of Tampa, FL and move to the greater Asheville area to be closer to family. I found an incredible deal with a high ROI but not a single lender wants to lend on it because it is going to be owner-occupied after the flip. I have a few properties in Tampa, FL with a considerable amount of equity and have offered those as collateral but still no luck. Local banks seem confused by my plan. Is there any other way to get cash/hard money for this deal without selling my portfolio?

Thanks in advance!

Hello Derek,

Normally for fix and flip(or in your case fix and hold) financing lenders will not lend to you if you will occupy the home.

If you will occupy the home, some options include a Conventional Homestyle or HomeChoice renovation loan that allow you money to buy the home and also rehab.

You can also use an FHA 203K loan. Either way you'll get better financing that if you went for a fix and flip loan with a higher interest rates and for short term too

2 Votes

Asheville, North Carolina

Quote from @Alexander Celestina:

Hi BP fam,

I am a new real estate investor looking to buy my first property and I wanted to use equity on my loan for investing. What are some banks you guys recommend to do a HELOC on a personal home?

Thank you,

Hello Alexander,

I would say for HELOCs ask multiple lenders what their terms are, if they allow HELOCs in second place(if you have a mortgage), min FICO to qualify and what their maximum combined loan to value will be. Also check their reviews for if they've done good HELOCs for people.

0 Votes

Fort Lauderdale, Florida

Quote from @John Thao:

How do you validate PML?

Ask them for their MLO/ corporate(most loan officers work for a larger corporate institution)/ loan licensing and registration details. WHat is their NMLS#? You can always look up their licensing information at nmlsconsumeraccess.org. FB is probably not the best place to ask haha. FB needs to get their act together because in many groups, especially real estate, there are way too many scammers.

Check reviews of the company and the lender(if available)

1 Vote

Fort Lauderdale, Florida

Quote from @Michael Behr:

Quote from @Dennis Muno:

Quote from @Michael Behr:

Hello,

I found a multi unit property. I have about 20% down payment. I’m now being told it will likely be 25%. My credit score is 780+. What’s the best way to fund this deal? I’d like to use as little as my money as possible

230k purchase price

45k is what I have to put down(don’t want to use all this)

Hello Michael,

It depends on what you are trying to do. Also don't forget you'll need money for closing costs in addition to a purchase downpayment.

Questions:

Does the property need rehab? Then you'll need hard money or bridge. Some lenders will lend up to 90% purchase and 100% rehab.

Is the property in good condition? You could use a DSCR loan. No personal income needed. Your FICO will be checked. Rents will need to cover PITIA(principal, interest, taxes, insurance, HOA).

For DSCR most lenders require 20% down+closing costs. However, some lenders require 25% down for a first time investor.

Do you already have an FHA loan? If not, you could try an FHA loan(minimum 3.5% downpayment) and buy a multifamily(1-4 unit). You stay in one unit(you are required to for a year), rent the rest of the units out and then use the tenant's monthly rent to cover the mortgage payments.

If you have 45K I won't recommend you using all that if not necessary. You never know what will come up after you buy. Life happens.

No rehab. The one unit I saw was good looking. It had other things. I have a primary that I got va loan for in April. Would I still be able to do FHA. I was hoping to not use the 45k if I could avoid it

Yes you should be able to do an FHA if you don't have another FHA loan. If your debt to income once calculated is no more than 55% you should be good. Obviously a loan officer will help you check other details(FICO, property type, etc) to see if you will qualify. That being said, if you don't have an FHA already and your FICO is decent and your debt to income once calculated is not over 55% you should be good.

FHA loans are much more flexible for qualification than conventional loans, usually

0 Votes

Huntsville, Alabama

All Forum Posts by: Dennis Muno

Dennis Muno has started 1 posts and replied 324 times.

Post: Construction Loan for an ADU

Post: Looking to build 2 duplexes but don’t know where to start?

Post: HELOC, Interest Only, Hard Money

Post: Having Trouble Finding a Loan for an Out of State Commercial Property

Post: Commercial cash out refinance 80-85%

Post: HELOC on income producing property

Post: HELP! Owner-Occupied Fix & Flip

Post: Best banks for HELOC on personal home

Post: Private Money Lenders

Post: How to fund deal