All Forum Posts by: Emma Duncan

Quote from @Robin Simon:

$1,500 Document Fee is pretty bad - true cost of docs for a DSCR loan are likely not going to be more than $500

That’s exactly what the lawyer said. He said he rarely sees anything over $500 and half the time the origination fees cover the document fee and they don’t charge anything extra. Ugh. Lesson learned. Will just work on paying this loan off and never using them again. 

Quote from @Jonathan Taylor:

@Emma Duncan thats unfortunate you had to go through that experience and thank you for sharing. What were your other 8 closing like? There is a treasure trove of info on reputable companies and brokers here so you have a lot of options. Happy to help and answer your questions since I work with a solid 85+ lenders. 

My other 8 have been wonderful and been with either a local HM lender or a local bank. This was my first time doing a DSCR through my LLC which I had a hard time finding someone local to do. Showed up at closing and Aloha required everything to be in my personal name. Wtf? Appreciate the help! I'll be in touch when I'm ready for the next deal.

Good evening BP friends! I tried to research several lenders when hitting the refinance portion of my latest brrrr project but couldn’t come up with much for recent reviews here in the forums. Just wanted to go ahead and add mine for Aloha Lending to hopefully help others out. I have to say, total dud on this company. I’ve done 8 closings in the last two years and this was by far the worst one. Communication wasn’t great. When I reached out to confirm closing date/time, after not hearing from them for a week prior to submitting all documents they requested, they were like “oh yeah, we need this, this and this corrected.” I feel like they should have reached out to me on problems with things I submitted. My final term sheet they emailed was not correct and my cash out amount was almost $3k less than they quoted. I was scheduled for 12pm on a Monday, after confirming the time (because of two other non communicated changes), they told me I was good to go. It was 2pm before they got the paperwork to the closing company. Document fee was super high at $1500. The lawyer at the closing company said they are one of his least favorite companies to deal with. Just wanted to give my opinion and hope to help others looking to finance or refinance some food for thought. 

Yes ma’am. 

I like the Roebuck area right now for cash flow. I have a couple in the oak mountain area that are decent for cash flow but great for appreciation. Depends on what you’re looking for. 

I purchased two houses off of the mls last year. Worked out awesome! One was a “back on the market” deal that the seller was very motivated to get rid of after losing several weeks of listing time before the previous offer fell through. I got a good discount on that one. The other was a motivated seller as well. The place was a previous rental property, tenants moved out and he was leaving it vacant to show and sell so motivated to get it done quickly. It only took $5k of updates to turn and get that one rented for me too. Both are solid cash flowing deals. 

I am definitely keeping an eye on the mls and targeting properties over 30 days and with multiple price drops. I think now is the time to snag some good deals there. 

Sorry, it didn't really give me the option when I filled it out. Monthly PITI is $422 and rent is $850. Considering I got all of the original $ back out of the deal, I consider that a solid monthly payout.

Awesome. We are about to list one in a couple weeks so I love to hear that. 

Good morning, Courtney. Look up Alabama Contractor Connection on Facebook. There are some good recommendations in there. I would be sure to use someone that is recommended by someone else in there, not someone promoting themselves. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $25,000
Cash invested: $35,000
Sale price: $80,000

Brrrr’d this one and have a long term tenant renting it out.

What made you interested in investing in this type of deal?

This was my very first property. I wanted something cheap to learn some lessons on. The house is near a rehab center and was being slowly updated by a couple guys after they came out of the rehab center but were staying nearby for support. Electrical, plumbing, AC and water heater had all been replaced or upgraded.

How did you find this deal and how did you negotiate it?

Facebook marketplace. I paid what they were asking as it was a fair deal.

How did you finance this deal?

I saved up for the down payment and went to a local bank for the rest of the purchase price and rehab loan.

How did you add value to the deal?

Fixed foundation, put down LVP throughout the house, added a dishwasher, fixed broken windows, painted interior & exterior, replaced the roof.

What was the outcome?

It took a year to get to the cash out but it appraised for way more than I expected at $97,000. I took out a loan for $75,000 and that paid back all of my original costs.

Lessons learned? Challenges?

Huge lesson learned on the contractor on this one. He was paid in 3 installments and after the second one ($15k) just took the money and walked. Thankfully he did the hardest part (foundation repairs) with that first draw before he walked with the money.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not really, just kind of figured this one out on my own. The local bank was helpful as far as approving a loan/rehab that was under 100k which I know most banks will not do. The interest rate was high but definitely worth it to get my first deal done.