All Forum Posts by: Evan Alterman

It's really going to depend on the area and if there are comps. In my scenario, my property is in Cleveland and there are enough properties that have multiple structures on one parcel that it is considered normal for the area. I'm keeping mine and will be refinancing into a non-QM full doc loan (little better pricing than DSCR) through my company since we have some no-seasoning options up to 80% cash out. Non-qm loans will most likely be the best options for long term anyway since they're a little more flexible with the properties too.

Exact terms definitely will depend on experience/track record, but worst case there are definitely some no-experience ground up construction products available that can get them in door at least!

I do quite a few HELOANs for clients. The 2 biggest deciding factors between the 2 for my clients are usually income type (full doc, bank statement, P+L, DSCR), and then how soon are they going to be needing to use the funds. If they're using the funds right away, usually the HELOAN makes more sense since they don't need to worry about being able to pay down the credit line and have it available later. Income doc type is going to be all but automatic one way or the other. While HELOCs do exist for bank statement income, the pricing is rough and a HELOAN is priced much better. If they need a P+L or DSCR 2nd, then HELOAN is the only option.

For the cookie-cutter full doc borrowers, Figure is a perfect option. Anything straying from that super simple income, there are definitely some great HELOAN products that can close in around 10-14 days as Jason mentioned.

Definitely seems low, I would ask them for a full breakdown of everything to see how they're getting to that. Even with only counting 75% of the rents, at least at a glance, you should be in a better spot I would think.

Steadily is always great!

There are definitely a good amount of options that can get you in the door with much higher leverage for beginners. Depending on credit (usually over 720), potentially can get in the door with 10% down on the purchase and up to 75% LTARV. Even at a 700 score you could get in with 15% down. Shouldn't have to worry about a partner in that case!

Hey Cole, I'm located outside Cleveland myself and actively invest there as well. We have a ton of products available from residential to commercial, both long term and short term/construction. Feel free to reach out anytime and I'd be happy to see how we can help!

 My pleasure! If you need any assistance with financing, please don't hesitate to reach out and I'd be happy to help you along your journey. I'm licensed in both Indiana and Ohio, as well as a handful of other states. We can assist with both the initial purchase with rehab and the refinance to long term once the work is completed.

Cash outs are usually going to be capped at 75-80% of the new value, and definitely will be based on the comps in the area. Residential comps are always based on recent sale comps as opposed to the rental values. Check out the finishes of the comps in the area and make sure you're not going way above the area norm for the quality of finish. ALWAYS be conservative with your budgets + valuations- if you think the margins aren't making sense- they're probably not and you don't want to hope they fall into place down the line bc they won't and then you're in a hole you have to dig yourself out of. There's always deals to be found. Sometimes they jump right out at you, sometimes they take some digging/waiting. You might not get 100% of of your out of pocket costs back through the refi every time, but as long as the rental figures are looking solid and and you're ok with the # of months it will take to recoup what you don't get back in the refi, then you'll be good.

There are options for no-experience ground up construction loan products. Usually just have lower leverage caps and some higher costs compared to having completed project experience. Some products require the land to be free + clear, others don't and will just cover less of the construction budget. Definitely depends on each scenario!