All Forum Posts by: Erik Estrada

Title/Escrow is asking us to provide the interest rate or note and lender instructions for current deal. We utilize a private individual for loans. We've done two projects and have never had to provide this to escrow. They will simply draft a deed of trust.

The interest rate or note -- no big deal as we have that. But, not sure why they need it for deed of trust preparation.

Secondly, not sure what to do about lender instructions. Does anyone have a template handy for a private loan? What are the main elements we should include?

Thanks!

I believe a company like GERACI should be able to help you with something like this. Many private lenders use them to help prepare loan docs

0 Votes

San Francisco, California

Quote from @Magnus Wikström:

Hi @Erik Estrada,

Ok, if we're at 2% total origination we're good. When can you close it you think?

Depends on how fast your title and insurance is. Also will depend on if we order the appraisal on a rush. If it's a clean, cookie-cutter deal with responsive parties, 2-2/5 Weeks

0 Votes

Quote from @Amit Bhojwani:

Hello,

I am working with a company that sells a property and does the rehab. I buy the property upfront at the ARV. During the rehab process, I take an out a bridge loan and carry it for about four months until the property has finished its rehab. Once the rehab has completed, I refinance into a DSCR loan and have to pay closing costs again. Does anyone know of a lender that will allow one closing to decrease fees? Of course, if anyone has any better financing ideas, I'd be interested to hear those as well.

Thanks in advance!

Amit Bhojwani

Hey Amit,

Unfortunately, most lenders are going to treat this as two separate transactions. Instead of seeking outside sources, why not just ask the company to offer reduced closing costs on the bridge loan or on the exit DSCR loan? They should be more than willing to accommodate this given that you are literally taking the risk off their hands and buying at ARV, AND using their financing. Honestly I would ask for little to no closing costs, since they are already making money off the interest and the profit on the rehab project.

1 Vote

Quote from @Glen Fernandes:

I recently purchased a triplex under a HML. We recently received approved permits / drawings, which has resulted in scope increases (e.g. masonry, deck repair, framing) and cost over-runs by 20-25%.

How should I navigate a loan increase converstion with the HML? I can also cover the variance out-of-pocket if necessary.

Hi Glen,

I personally wouldn't recommend putting anything on a credit card, unless you know for a fact you will pay the balance off before the 12 month intro period.

More debt will put you in a tough spot, especially in a market like this. I would recommend getting a JV partner to help you finish the project. You could try to do a mid-construction refinance, however you will need to have a VERY accurate budget, and conservative ARV comps. Most lenders will just payoff your existing loan and increase your budget as long as you are within 70% of the ARV and typically, 85% LTC.

0 Votes

Chicago, Illinois

Quote from @Magnus Wikström:

Hi BP community,

We're foreigners (Swedish), building SFR in SWFL in the affordable segment. We're now seeking a short term stabilised bridge loan for 1, potentially 2 properties valued at $310.000 each. We're strong in liquidity and have a few more projects where we could possibly do the same thing in a few months. Please note min. 80% LTV, no ridiculously high origination and No brokers please.

Thanks

I can do 80 LTV on a bridge. Unfortunately I am a broker. Not sure what a ridiculously high origination is to you, but I personally think 2-2.5% is the norm for a loan like this.

0 Votes

Quote from @Dennis Knapp:

is there anyone that will give me a dscr loan under 100,000 I found a cashcow rent ready for $55,000 for sale by owner. it currently rents for $950.00 and its rented now! This will be my first rental property other than my house hack duplex please help, Thank You

Have you looked into taking out a HELOC on your primary or just saving the money to buy all cash? Financing this property will be tough and expensive.

0 Votes

Quote from @Nathan Brown:

Personally, I'd put to use in my business or keep as reserves incase something does come up. The answer would be dependent on your goals and financial status. Yes you can invest in RE, but you can also grow it more by investing in your own business or using it when you find an opportunity that makes sense.

Just because you have it, doesn't mean you have to make a bunch of un calculated moves. You have to flip the question and ask yourself, if I lost this $250k, what would I need to do to make it again? Once you figure this out, you'll be set.

0 Votes

Quote from @Turgut Oz:

I have a conventional 30 yr mortgage for 3 years. I have always paid on time and recently canceled PMI so there is no PMI right now. I have a LTV <0.8. The lender said the investor (in my loan) has refused to remove my escrow account. But, there is no reason why lender insists on that when I have above parameters. The lender does not provide any reason as to why lender refuses it or what factor prevents them from doing so. I am in TX. I wrote a complaint on CFPB. What are my options?

Did you check the loan documents that you signed when you took out the loan?

1 Vote

Might want to try a local bank. That LTV is not common on an investment property. Good luck!

2 Votes

Charleston, South Carolina

Quote from @Ron Amshalom:

Hey everyone!
Asking because I'm at the beginning of my real estate journey.

Finding the right lender can be tough—especially when the deal requires creative or highly tailored financing for the investor.

How do brokers or consultants source these lenders if they don’t already have personal connections?

Asking because I'm at the beginning of my real estate journey.

Thanks in advance!
Ron

Once you're already in the industry, and actively working these unique scenarios, the lenders will fall in place lol

0 Votes

All Forum Posts by: Erik Estrada

Erik Estrada has started 17 posts and replied 3932 times.

Post: Lender Instructions for Private Party Loan

Post: Seeking lender for short term stabilised bridge min. 80% LTV

Post: One closing instead of two

Post: Hard Money Loan Increase?

Post: Seeking lender for short term stabilised bridge min. 80% LTV

Post: Dscr loan to small?

Post: What would you do with this $250K?

Post: Can lender refuse escrow removal when there is no reason for it?

Post: HELOC (80-85% LTV) Single Family Home Investment

Post: How Do Brokers Source Unique Lenders?

Erik Estrada has started 17 posts and replied 3932 times.

Rounded Star Post: Lender Instructions for Private Party Loan

Rounded Star Post: Seeking lender for short term stabilised bridge min. 80% LTV

Rounded Star Post: One closing instead of two

Rounded Star Post: Hard Money Loan Increase?

Rounded Star Post: Seeking lender for short term stabilised bridge min. 80% LTV

Rounded Star Post: Dscr loan to small?

Rounded Star Post: What would you do with this $250K?

Rounded Star Post: Can lender refuse escrow removal when there is no reason for it?

Rounded Star Post: HELOC (80-85% LTV) Single Family Home Investment

Rounded Star Post: How Do Brokers Source Unique Lenders?

Post: Lender Instructions for Private Party Loan

Post: Seeking lender for short term stabilised bridge min. 80% LTV

Post: One closing instead of two

Post: Hard Money Loan Increase?

Post: Seeking lender for short term stabilised bridge min. 80% LTV

Post: Dscr loan to small?

Post: What would you do with this $250K?

Post: Can lender refuse escrow removal when there is no reason for it?

Post: HELOC (80-85% LTV) Single Family Home Investment

Post: How Do Brokers Source Unique Lenders?