All Forum Posts by: Issac San Miguel

I’m confused on the logic here. If it rents for $875 in the condition it is in, why make repairs at all?

Is there a tenant in place?

Are you going to pay cash? My advice would be the leverage your cash, finance the property, and keep unused funds for other re deals. Paying cash does not allow for the best return. Have the renter pay the mortgage for you.   

Hey Aaron,

I think I could help you here - send me a dm.

Thanks!

Could you elaborate on the question? We do not require experience although it does help with rate. For STRs, our clients acquire the property through a 12 month bridge, finance the repairs with the same loan, then refi out into a dscr loan.

As a lender we certainly want that skin in the game. Wholesaling would be a great way to build capital if the market is favorable to those tactics. 

I would also suggest finding someone who may be willing to partner with you. Several of my clients use other peoples money for a share of the profits.

Hi Britt,

As a lender, your credit pull is good for 90 days with us. I would just be strategic about the timing of the pulls.   Secondly, we work through your verbal credit self rating when providing terms, so as long as you are honest with that, you won’t take a credit hit until property is in underwriting. 

Finally, it doesn’t affect your score as much as people think. 

Let me know if I can give some more background on your question. 

As a HML we have a ton of clients who look to BRRRR with STRs. We add value to thier strategy by giving them the confidence to take down the property and the peace of mind knowing their rehab costs will be reimbursed, allowing them to focus on the bigger picture of making the property ready for the STR market.

 in my opinion then, 12% seems high with the leverage you have. let me

look at it for you. i sent a dm. 

shop a few hml’s, if this is your primary, some wont touch it. we don’t loan on primary residences. credit aside, there is value in the house. the rate would be determined by your experience and credit. do you have anyone with better credit ready to jump into the flip with you?

that, or sell it as is an pay off your debt before going all in on investing in real estate. 

I went through a refi last year with a traditional mortgage bank. had the same scenario, first appraisal came back super low, we argued the valuation and ultimately got nowhere. 

we decided to start over with a different lender, and got a 2nd appraisal exactly 16 days after the first one was dated, and the valuation was almost $80k more. 

sometimes starting over is all you can do. 

I personally don’t like helocs and would look at cash out refi instead, or if this is an investment a hml.