All Forum Posts by: DeWitt Gibson

@Don Konipol @Taylor L.

Thank you both so much for your replies! I really appreciate the insight. 

@Daniel Fisher You need to be on title for six months to qualify for a conventional Fannie/Freddie cash out refinance. There is no waiting period for a rate and term (no cash out) refinance.

Commercial and Private lenders all have their own rules but 6 months is still a good rule of thumb for cash out refinance.

Hello Bigger Pockets -> This community never ceases to amaze me so I will through this out there: 

I know that syndicating deals to purchase commercial real estate is pretty common. There are a lot of parties and costs involved but the costs end up being a low percentage when you are dealing with the high dollar commercial projects. 

My question is there a cost and effort effective way to syndicate a deal for single family homes. Particularly for "Special Purpose" single family like Residential Assisted Live and Short Term Vacation Rentals. 

I see a lot of opportunity in these types of properties but they are very tough to finance using traditional lending so I am wondering if a syndication could be done efficiently enough to have that type of thing make sense. 

Thanks in advance!!

@Chris Martin Fair enough. It’s obviously a complex issue.

@Joe LeGolvan because that is what the new government appointees have decided is basically why

@Joe LeGolvan I hope that’s correct.

@Allen Wu I am saying the price of the loans will go higher. For example, right now you can get a Fannie Mae Single Family Investment purpose loan for 4% - ish and a Non-QM (private) loan for 6% - ish ... these new regulations are probably going to push the Fannie loans more in line with the 6% - ish private loans now, making them more expensive. This will also make the private loans a more attractive alternative as they aren’t as restrictive - you can own in LLCs, more underwriting flexibility, may not require income tax returns, etc.

The Biden administration is having Fannie focus away from investment purpose and more towards primary residence purpose. This will cause a shift in the lending market for investment purpose loans.

@Cathryn Sta it appears that way, but this announcement just came out and no one really knows the full changes yet. It is safe to say that a big shift in how conventional investment purpose loans are underwritten is under way.

@Allen Wu I am referring to investment purpose loans. The pricing for investment purpose loans will likely go higher. Simple supply and demand. If lenders have to cut back on their investment purpose lending by half then there is less supply meaning they will likely go higher in price.

@Alex Forest The consensus in our office is that Fannie loans are now going to be priced similarly to private and non-QM lenders. Fannie is going to focus more on primary residences and investment loans more to private lenders.