All Forum Posts by: Eric Boshart

Quote from @Jason Taken:

We only lend gap to people who've completed at least 1 exit with us. Typically, we're at 15-20%, and a flat origination. And we pay close attention to spread on the deal.

 Thanks, Jason. Is the flat origination 1-2 points?

Wanted to gain some market intel on what the going rates, fees, and terms are for a typical gap loan on a fix-and-flip property. Been looking at providing this product as well as taking a gap loan on for a fix and flip I'm looking at. Just gathering market intel at this point. Thanks!

Hi Ana, totally depends on what product you're looking for. If you're buying it as a package and planning to value add, then a. commercial bank will be able to get you a portfolio loan with perhaps a short-term construction component. DSCR is a different story. If you're not value-adding at all, a DSCR loan might be tough depending on your down payment and market.

Lastly, if there's a value-add component and you're buying individually, considering going with a hard or private money lender who can evaluate each property individually and then exit out of it through a cash-out refi. Happy to be a resource where I can.

Quote from @Leslie Bovaird:

Quote from @Eric Boshart:

Hi Josh, I just sold 5 MTR's in Fort Worth and still own 3. While Dallas has its own set of rules and regulations, Fort Worth has been a great market for us. 30 night minimum stays are required in Fort Worth, but we haven't had any problem being 90% booked out in a given year.

Happy to provide more info if needed.

Also, I believe BiggerPockets is coming out or just came out with a book on MTRs.

 Hi Eric, would you mind if I contacted you about MTRs in Fort Worth?

 Not at all, please do!

Quote from @Erik Estrada:

Quote from @Andy T.:

I had a plan of house hacking but with my siblings and cousin. Idea was to get a house for 1-2 years then refi and move to another house and acquire properties like over time. My question is if we do a 3% Down conventional loan would we be able to negotiate with the lender to lock us in for a lower mortgage for a short fixed time like 3-5 years? Is that even a thing conventional wise?

 No. 

But you could do a temporary buy down the first 2 years and negotiate that with the listing agent. 

So for example if you are at a 7% rate, the first year will be 5%, second year 6%, and then your normal 7% rate. This can be bought with seller concessions. 

Agree with this. Now is the time to ask for seller concessions. That 200 bps opens up a lot more homes from an affordability standpoint. If you plan on exiting the loan in a short timeframe, getting buydowns can be a great strategy. 

Sounds like you'll be needing to talk to a local hard money lender who understands the area really well. Most nationwide lending shops have pretty similar criteria because they use the secondary markets for financing, so looking for a balance sheet lender who can be flexible on criteria is key. I'm confident they're out there!

Have you been a hard money borrower before? I'd recommend looking at the lenders that you've been enjoyed working with and try to style your business based off of them.

Then going to people in your trusted community and do a couple of one-off deals to make sure the business is right for you.

Private credit is a really exciting time right now!

Thanks. Is it something you can help with?

Quote from @Scott Wolf:

Quote from @Eric Boshart:

Hi BP Community, I just got a senior care facility just south of Fort Worth under contract and am looking for a DSCR lender who can help with the purchase. It generates solid cash flow that can more than cover the debt service, and we're experienced investors with great credit. Does such a thing like this exist, or should we go the SBA cash flow loan route? Thank you!

 Will you be operating the facility? Or is it under a lease?  What's the purchase price?

 I will be operating. $1.7m

Helpful, thanks Robin.