All Forum Posts by: Matt Rosen

@Ronald Mejia

Good questions. If you are buying non owner occupied properties then here are some general guidelines that will qualify you.

660 Credit Score(rehab, fix and flip) 680 (rental, cash out refinance)

20% down on purchase price plus closing costs

Experience level: 3 investment deals in the last 36 months will get you much better interest rates and higher leverage

DSCR (Debt service coverage ratio) 1.25 or higher for the rental long term loans

75% ARV

Hope this helps

Hi @Jon K. yes we always require an appraisal on every property whether its a fix/flip, construction or long term hold, refi, etc.  This does not mean that the final decision is solely based on the valuation provided but HMLs' need it for compliancy. 

Hope this helps

Hi @Lucia Rushton we are always asking for the borrower to purchase the investment deal within there LLC or business entity. And most hard money lenders will require this before closing.

When they said it will take 3-4 days once they receive the appraisal back, are they referring closing timelines? 

Thanks

Hi @Chris Galetta great questions. I can help you figure out the rate/terms on specific loan products based on your exit strategy. Depending on the deal, many investors rather fund the rehab on there own money so they don't have to submit draw requests from the HML after each rehab phase is done.

I can run these numbers with you. Please DM me

Matt (808)741-3700

Great question @Garry Burns 

I come across this question often, and I see investors raise capital almost like it a full time job. Let me first look at the positives for friends, family and "country club money". When it comes to friends/family the costs are less but expectations will have to be managed. This can cause allot of sleepless nights and time spent fielding calls, answering questions. In my opinion using a professional private lender is the way to go. Professional meaning they serve like a mentor in the deal and make sure you profit and able to close.  You can always raise capital for the gap funding needed as well! Yes you pay more with a hard/private lender. But in the end, you have more time doing the most important aspects of your deal.

If you need help, DM me for more clarity.

Matt

Hi @Joshua Herald obtaining a loan on an owner occupied deal will be very hard to do with traditional hard money lenders. You would have to purchase in an LLC non owner occupied with a refinance with a local bank. Or raise private capital to purchase this deal.

Hi @John B, My suggestion is to review your plans with a local credit union or small community bank first. Then go to a hard money for a short term purchase/rehab loan with the exit strategy in place with the bank. This way the HML will know upfront what your exit strategy is.

If you need help let me know

Aloha @Allan Kuaana. I'm a little late to the post, but wanted to say welcome! Always good seeing local people getting serious about real estate.

Hi @Nicholas Sheridan, Jr. there are allot of questions we can sort through. There are private lenders doing long term 30 year non owner occupied loans. Only problem is your LTV ask especially on your first deal. Would like to know more about this project as there might be creative ways to get your down lower.

Matt (808)741-3700

This thread should be read by new borrowers as the signs of a scam are well discussed. From my experience, here are some red flags to look out for when looking at a private lending resource.

A legit private lender will never ask for upfront fees. There is no such thing! If they do, hang up and lose there contact info.

Here are some other things to watch out for, but not necessarily mean they are a scam. Just not very legit

• Gmail email
• No website
• Claim they are a direct lender but you find out there a broker
• Claim lower rates and better terms than everyone else
• Cant provide credible references