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All Forum Posts by: Erik Estrada

Erik Estrada has started 17 posts and replied 3835 times.

Post: Making a mistake with a cash-out refinance?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
  • Votes 1,236
Quote from @Axel Scaggs:
Quote from @Patrick Roberts:

Couple questions -

What's the rate and remaining life of the $130k first position?

For the closing costs, how much of that was escrows? If you're currently escrowing with the existing first lien, you would be refunded the balance of that escrow account about a month or so after closing on the new loan.


 The original loan rate was high, at 8.75%, new rate is 7.5%. House was purchased in 2017, so restarting it has certainly affected things in that regard. I attached images of the closing costs. 


 You are getting killed on the fees. I would recommend shopping this. 

But in the event you do decide to sell, you can also look into a cash out bridge loan while the property is being listed for sale to purchase more flips. This is very beneficial in markets where homes are not selling as quickly. 

Post: Any users of RFG funding?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
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Quote from @Mitzi Cil:

Has anyone ever worked with Rehab Financial Group? I keep seeing ads for them offering 100% financing. We are looking at a fix & flip pur price of 185k ARV 285k. We are looking for 100% funding of purchase price and reno costs with delayed payments.


 Delayed payments & 100% Financing? Sounds like a scam or recipe for disaster. 

Post: Looking for Loan to Finish New construction

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
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Quote from @Charles Wang:

Hello, I have paid paid for 75% of my new build which is 75% complete.  I am looking to finish in the next 6 months and would like to borrow the final 25%.  Anyone have some good recs?


 Hi Charles, 

These loans are very tricky, and definitely require more upfront work to make sure financing is even possible. Lenders are tightening down on these. 

A few things here: 

1. What kind of building is it? 

2. What was the initial purchase price, cost spent, budget remaining, and ARV?

3. Do you have a mortgage on the property? 

4. What is you credit score and do you have 6-12 months reserves? 

Post: Experience with Aloha Capital/Swell Real Estate Group?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
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Quote from @Timothy Taylor:

I'm working on a cashout refinance with Aloha/Swell of a 4 unit property and started the process 2 weeks ago.  We need to close by 4/1 to avoid a large pre-payment penalty with our current lender.  We have yet to get to get contacted by the appraiser.  They say they have plenty of time and they will be able to close by then, but I've never seen this slow of a process.  If you have worked with them or invested with them I would like to hear about your experience.  Thank you!


 Sounds like their pipeline is a little too full. The appraisal should have been completed by now. 

Here are the steps needed to close quickly: 

1. Get all upfront docs. (Loan App, ID, Bank Statements, Entity Docs, Leases, Experience, Credit and Background Reports, Third Party Title and Insurance contact info) Once reviewed and all documents have been clarified, submit to the lender. 

2. Order the appraisal on a rush (AMCs typically charge more for this) 

3. Send out Title and Insurance requests. 

4. Loan goes to initial review 

5. Appraisal should come back in 3-5 days and you should also have any conditions needed to submit to final review. 

6. Assuming value comes in as stated, submit all requested conditions along with third party title and insurance 

7. Loan should be fully approved if no other conditions remain

8. Loan goes to Docs 

9. Schedule Signing and Fund/Record. 

Obviously there are a lot of variables (liens on the property, lack of insurance in the area, value comes in lower, or you have trouble documenting a few conditions) but if everyone is moving fast, you should close a DSCR loan in 2-2.5 Weeks.

Post: Rate and Term Refinance Commercial Mixed Used Property

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
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  • Posts 3,984
  • Votes 1,236
Quote from @Necho Williams:

Hi All,

I hope you're well. I'm actively seeking a lender for a property I own zoned mixed used commercial.

Property approximately worth: $980K-$1M.

Seeking 65% LTV. ($650K).

Seeking interest rate 6.875%-7.125%

Credit score > 740+

Significant cash reserves (More than enough to pay the property).

Fixed & Flipped over 30+ properties in 36 months

Currently own over 60+ homes


 Have you tried looking at a local commercial bank/credit union? You will get pretty good rates if you start there 

Post: Lending on investment properties NOT in LLC

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
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Quote from @Nishan Akwalia:

Hey I have a few fully paid off properties I would like to take equity out of. They are currently under our personal names and I would like to keep it that way. Are there any DSCR loans I could obtain with it not being in an LLC?


 Yes it just depends on the state, 

There are a few restricted states when it comes to Business Purpose Lending, and will require closing in an entity. It will also depend on how serious the lender takes into account those laws. 

Happy to connect. 

Post: Any recommendations for a great mortgage broker in Cincinnati?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
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Quote from @Elan Adler:

Hey all! Sorry this isn't a detailed post, but I'm looking for a recommendation for a rockstar lender in Cincinnati. I currently own a few properties in the Southeast, but I'm looking to buy my first property in Cincinnati. I'm interested in 1–4 unit properties under $500K. I can put down a large down payment and am looking for a Conventional or DSCR loan.


 Hi Elan, 

Happy to connect in regards to DSCR lending!

Post: 90-100% LTV DSCR Cash out refinance ?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
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Quote from @Hai Le:
Quote from @Erik Estrada:
Quote from @Hai Le:

Just curious to see, are there any DSCR lenders out there that offer 90-100% LTV Cash out refinances on a 2 unit, multi family property? Not sure if this is a thing or not!


 Hey Hai, 

I think you might be confused. Many DSCR lenders will lend up to 75-80% LTV on the new appraised value typically after 90 days of owning the property. Theoretically if you bought the home for $200,000, put $75,000 in Reno and the property appraises for $380,000, you should be able to pull out 100% of your initial cost at a 75 LTV on the new appraised value.

I know you can take out 100% of your initial cost in that case. I was just wondering if for example I owed 150k on a property that’s worth 250k if there’s any lenders that do 90-100% LTV loans that allow me to pull out $75,000-100,000 of equity. If that’s even a thing that’s not a VA loan 

 Got it! 

Not on an investment property. However there are lenders that can go up to 90% CLTV (HELOC) on a primary residence.

I am so glad you made this post! 

Post: 90-100% LTV DSCR Cash out refinance ?

Erik Estrada
#1 Mortgage Brokers & Lenders Contributor
Posted
  • Lender
  • Posts 3,984
  • Votes 1,236
Quote from @Hai Le:

Just curious to see, are there any DSCR lenders out there that offer 90-100% LTV Cash out refinances on a 2 unit, multi family property? Not sure if this is a thing or not!


 Hey Hai, 

I think you might be confused. Many DSCR lenders will lend up to 75-80% LTV on the new appraised value typically after 90 days of owning the property. Theoretically if you bought the home for $200,000, put $75,000 in Reno and the property appraises for $380,000, you should be able to pull out 100% of your initial cost at a 75 LTV on the new appraised value.