All Forum Posts by: Dylan M. Davis

Most likely a cash-out refinance won't be possible unless the loan amount is above 100k and the property is currently seasoned and rented. If the property needs capital improvements and as it stands is worth over 125k I could see a lender potentially issuing a rehab holdback against the ARV.. These funds would be drawn down as work is completed but landscaping wouldn't necessarily be included.

As well most lenders won't do anything under 100k.. So most likely you'd have to come out of pocket or find a partner that wants in on the deal to provide the liquidity. 

Seasoning relates to how long the property has been owned and managed. If you'd like to refinance a value-add project, typically lenders look for 3-6 months seasoning. 

When you get to the lending part.. really consider these questions. Do you live within 100 miles of the property or are you going to have a third-party manage it? Does market rent satisfy DSCR requirements as it stands if the property were to be financed at 75-80% of the as-is value? If so, potentially you could do a vacant purchase with a rental loan. That's if you have the cash/credit and the market rent satisfies DSCR

The rental you have paid off would be easy enough to do cash-out refinance. However, if you recently purchased a rental property and do not have 6 months of seasoning, you could only refinance against the purchase price, not the new appraised value... Let me know if that makes sense. 

Hi Kevin, welcome to the BP community and congratulations on taking the first step towards real estate investing! Seeking out lenders is a crucial part of the process, so it's great that you're already thinking about it.

To answer your question, it's definitely a good idea to get preapproved from multiple sources or explore multiple types of lending. This will give you a better understanding of the different options available to you, as well as allow you to compare rates and terms..

As you mentioned, as you become more established in the industry, you may work with a select lender or lenders regularly. Building strong relationships with lenders can be beneficial in the long run, as they can provide you with funding for future deals and potentially offer better rates and terms.

Is this a portfolio? If all of the properties are in the same state and worth >50K in value we may be able to have a solution

Never heard of them, but ask around and see what LTV is possible. You're seeking DSCR funding right? Would love to know the details...

 This is interesting! 5 pts in origination fees? Or is that an estimated cost to close? 

There are 3 types of lenders in this market: The lender that's still open, the lender that's restructuring (good luck closing on time), and the lender that is completely out of business...

Let's see if the DSCR works on a max 65% LTV stabilized 2+1 bridge product.. Could work! Ask around about it. If no one can do it let me know