All Forum Posts by: Elias Halvorson

For rate scenarios lenders need to know much more info:

1) SFH, Condo, or?

2) Your credit score

3) Purchase price and down payment amount

I would recommend shopping rates with a few local mortgage brokers. Typically a broker will work with at least 10 DSCR lenders so they should have a variety to reach out for quotes to.

Hope this helps. 

There are a lot of cheaper areas in the Midwest and South where you could take that 500K and buy either a dozen or so properties (with a DSCR) or buy a bigger multi-family. The key is doing good analysis on the rental market and finding a good property manager.

I am seeing a lot of movement on VA assumable loans. Of course, my focus is veterans so I may be biased.

My experience with friends/some clients is get their numbers via whatever method you can and reach out via the phone. You might get a response to your mailers, but I doubt it. If you do decide to do mailer(s), then I would advise you to personalize the card and do a handwritten note. 

This isnt a tough deal as some have alluded to above. Any mortgage broker should have 10-20 lenders which can do this deal. The DSCR lender will likely rely on both the 1007 and the AIRDNA info, sometimes at the lender's discretion (which one they will use for income calculation).

One thing I am curious of - typically many of the hard money lenders will charge a 1-3 year pre-payment penalty in these types of scenarios unless your client paid points to not have that pre-payment penalty. Do you know if there is a pre-payment penalty? If so, youll want to do the calculations if it makes sense to immediately refinance or wait the year until the penalty goes away. 

Aloha Jose, as many have mentioned based on the limited info you gave there shouldn't be any issues finding a lot of lenders. I would recommend reaching out to a few local lenders in your area. As a few mentioned, depending on your situation you might have to do a DSCR Cashout (vice conventional investment), and with hard money loans often there is a pre-payment penalty. I'd recommend setting an appointment with a local lender, sitting down and going over the loan, and your options with him/her.

I would sell. I do not believe FL is a good long-term investment. Whether it is the increase in hurricanes, intensity of hurricanes, rising sea levels etc. Know that almost every year your homeowners/hurricane insurance will be increasing significantly. We are seeing big increases in HI because of the natural disasters in FL, CA, etc. More and more insurers are refusing to cover disaster-prone locations. I believe the appreciation will slow/stop in much of the gulf towns on the water because of this. Just my two cents. 

A lot of local banks tend to have 1-3 year intro periods of lower interest rates for HELOCs, check with some yours. 

What everyone else said - go option one. FHA is junk unless you have bad credit. Go for the bigger down payment if your only other debt is the rental property.

 Hey Zach, lots of reasons: 

1) Local Expertise: For instance, My primary states are Hawaii and Washington. I've lived a decade in HI and am from Washington state. I have knowledge of those states. There are many unique features in each state. In HI there are leasehold properties, cesspools, water catchment, and Lava Zones (on the Big Island). Many DSCR lenders will not lend in Lava Zones 1 or 2. Ive taken over loans for mainland lenders who were 20 days into the contract before realizing they could not lend in the Lava Zone the house was located in. A local lender, vice a lender "licensed in all 50 states" would know this. There are rules and situations unique to each state and that is why you want to go with a local lender vice someone just reaching out to you telling you they can do it.

2) Better recourse if the lender screws something up: a local lender has more skin in the game so to speak as if they screw something up their name will be mud to local real estate agents in the deal. If you were looking at buying in Florida, but your lender is in NY or California, they dont really have to be as concerned about their reputation because the realtors (most likely) will never work with them again. 

#1 is the primary reason, but #2 does factor in as well. Feel free to DM me with any more questions, but for lending I'd really only be able to help you if you were looking in WA or HI.