All Forum Posts by: Ethan Gidcumb

Hey Ravi! The amount you need to come up with really depends on your strength as the borrower and what kind of lender you go with. Clearly, you are getting all kinds of different answers through the forum. To give you perspective, we require our borrowers to have completed at least 3 construction projects, this can be the direct contact or somebody on their entity/team. Also, we will lend up to 85% LTC which requires 15% from the borrower. Hopefully, this gives you some more information to consider. Best of luck to you!

Hey Tyler! I agree with the others, the situation seems strange. Is, "Do Hard Money" charging you the $3595 just to help you find a property? Or is this an upfront fee, separate from what they will charge on the loan?

Hey Jordi! Many lenders service multiple states so you could work with big lenders or even local mom-and-pop lenders. Most people refinance with whoever can give the best rates. If the property is bankable, you will most likely have the best rates with the bank rather than a HML. Let me know if you have any questions and good luck!

Hey Dave! We do deals with Kiavi and I was actually just listening to an interview about them this morning. They prioritize the relationships they have with their customers, but, just like others mentioned since they are so big, it can be easy to get lost in the sea of other borrowers.

Hey Daniel! Asset-based lenders definitely exist. Depending on the type of loan you are getting, they are going to consider different aspects of the borrower and the property. If you are looking for Construction lending, usually lenders like to seem some experience in this type of investing, and liquidity to make sure you have skin in the game and can get the deal done according to schedule.

Hey Dan! I will add to what Mark Munson mentioned. I could see a lender being concerned about any major renovations affecting the monthly income on the loan, (since it's based off that). But, if you have a 30 year loan, you eventually would need to do some bigger renovations.

Hey Bradley! Some time ago I connected with a ton of Multifamily owners in the DFW area through two methods:

1) I cold-called owners by using a list I pulled from the MLS. In these calls, I quickly explained that I am not trying to sell/buy anything but looking for advice. The majority of people were extremely insightful and some even had some properties they were trying to sell, but weren't right for me.

2) For the second method, I would find a property I could see myself owning one day, then go to the county tax assessor's website to find the entity that owned the property, and then reach out to the owner of the entity if I could find their information. Again, I took a very casual approach and asked about how they got into the property, what their investing journey looked like, and what advice they could give me. 

From both of these methods, I increased my network dramatically, gained a ton of knowledge, and learned a lot about the DFW area and who the major players were in that market.

Hey Anthony! Finding a PML for a DSCR loan should be easy since all of these properties cash flow, considering your comment about the rents. You would see an increase to the interest rate but I could see how it'd be a great option to pull funds from the current properties.

Hey Aarielle! Most people turn to hard money if they have trouble being qualified with a bank, (such as showing income, etc.), if the property is not bankable, or if they need a quick closing time. Its a great option if you are only concerned with being approved for an investment property but it's crucial that you have an exit strategy, (to get out of the hard money loan), and that you are prepared for the additional costs you will face with the increased rates.