All Forum Posts by: Jared Rine

@Doug Quist..find yourself another broker.  If you're purchasing a new primary residence, there is no number of financed properties or properties owned free/clear.  It might be they are new, confused, or a lender overlay.  But straight Fannie/Freddie guides do not have a number of financed properties limit if you are purchasing a primary residence.

@John Mitchell...did you find a solution or did you pass on the deal?  I'm interested to hear what happened or if it's still open?

@Eric Jackson..as @Chris Seveney mentioned - is this for owner-occupied property or investment?  Either way, you should have options, assuming other things are in line - credit + assets.  If it is owner-occupied, I'm sure there's a creative way to document your income, where it's not Tax Return based.  

@Reid Smith ...@Nick Belsky has provided great insight and so I'm not going to add much but there are SBA lenders out there who are still writing fixed loans - no adjustable period for the rate. With SBA, many times, it's finding the right lender with the right appetite for your type of deal because not all SBA lenders are the same. In fact most aren't (generally speaking). Many lenders don't lend on hospitality in general, and in a tightening credit market, that's even more-so. Your refinance could be an issue but echoing the sentiment - if you're stabilized and thus it's likely your property is also worth more than just the Loan to Cost ($1.7MM), your LTV will be at a better marker, a local bank or CU would likely be open to refinancing.

@Zach Morton...are you trying to lend your own money/go into private lending?  Being a mortgage broker and having experience placing hard/private money in both CA + AZ, when you're lending money through licensed broker channels, it's actually really difficult to usury laws. If you're abiding by the correct licensed channels, I really wouldn't worry about it.  And in AZ, it's def not 10%.  Money is being put out all day by lenders at 11-12 with points.

@T Brian Nauheim...Is the property in OR?  Where?  What's the purchase price?  Is this for investment purposes or were you planning to live there?  How much are you looking to put down/or have available for down payment/fees/closing/reserves?  I'd like to hear more.   If there are merits to the deal, and you're strong enough, you should be able to find lending, even if it's private/hard money lending for now.

@Rohit Puri..you're not that far from me.  I'm in Pittsburg after being in Sacramento for a long while. Is there a possibility to be able to put a master lease on the 4th unit or is that just not possible? Is the 4th bedroom just not rented at this time?

I don't know the deal particulars, but maybe you can get away with the 3 units rent, depending on what you're trying to??  I'm just throwing out conversation questions that matter.  I wouldn't mind hearing more. PM if needed. 

@Chris Mercado...I just uprooted myself from Sacramento having lived there for ~14 years in the Natomas area and now more near the Bay Area, but still keep lending over there. I have many construction loans under my belt as a mortgage broker. I read over the thread. The costs associated are going to depend on what your building and square footage of your duplexes, as that will affect cost. You're going to definitely want to start with architect to get a plan set on what you're building for the space and engineering to make sure it's feasible and can be done. That's where I would start. The costs associated to get to permits as well as the permits themselves will not be cheap and will likely take longer than anticipated - things in construction usually do. The financing is kind of the last puzzle piece as if everything else is in line, and your completion equity is solid (LTV) you should be able to find financing.

@Eric Boshart...this type of financing does exist by specific DSCR lenders, but you're going to be limited on LTV and there are nuances with what constitutes adult care facility. But it is out there.

@Kerriann Lowers...if he's seller financing the property, then yes, the ownership will transfer to you while he holds a note for the loan amount, secured by the property. He's just acting as the bank. The $100,000 you are putting in counts as equity. So for a $550,000 purchase with $100k down, that's 81% LTV. If your property value stays stable, then when you go to refinance, you should only need to bring in the difference (if there is any) of the equity that the new lender wants you to be at. Example - if the new lender wants a 70% LTV, and value is still $550,000, then you'd only need to bring in another $65,000 to get the refinance loan. I'm using gross numbers. From what I can tell, you are thinking correctly about this. Just my $0.02.