All Forum Posts by: E Challenger Sr.

@E Challenger Sr. May I ask why you're opposed to a broker? I'm assuming you had a bad experience in the past. I'd just say that the most successful brokers often get wholesale pricing offers from lenders which will be more cost effective than if the borrower went retail/direct. This is a way for lenders to lighten their workload and incentivize the brokers with the best track records. Absolutely no pressure, but I'd be happy to draw up a quote for you to compare side by side after you've collected a couple terms sheets from direct lenders. I'm pretty confident that we're setting the pace on DSCR rates right now. Sometimes I actually prefer it when a borrower comes to us after getting a few quotes from the first big name DSCR lenders on google.

@robin simon is right; seasoning is going to determine where this loan goes and how much it will cost.  Whether you use a broker or a lender,  you will pay about the same amount.

If you owe 175K and the property is worth 280K, then your max loan amount will be 210K. That leaves you with 35K minus closing costs. You'll probably take home 25K after escrows, prepaids and other closing costs. At max leverage, your principal and interest payment will be 1596 (210K at 8.375% interest). Depending on your monthly taxes and insurance, you'll be tight at 1.0 DSCR.

What is your seasoning on the property? Conventional Financing (which will tend to have the best rates/terms) just extended the seasoning (ownership) period minimum to 12 months to do a cash-out refinance, while many DSCR lenders will do it at 3 or 6 months, albeit with a little higher rate.

Setting up my first rental for college students. Thanks for the discussion regarding RentRedi. I think it's going to be the best way to manage one unit with 4 renters (4 individual leases). The fact that RentRedi only allows rent payment from a phone isn't an issue with the demographics of my renters. I also love the fact that I can help them build credit by reporting their rent to credit agencies. 

Hi, I have been using Rentredi since last December 2018. They are GREAT. They have always helped me fast and have answered some of the same questions I have had multiple times with out getting upset. Their program is simple to understand for the most part. I HIGHLY recommend them. 

Derek Schronk