All Forum Posts by: Jared Rine

@Jameson Sullivan...Debt quotes being rough is subjective right now and it seems like you know that.  What type of quotes are you receiving?  Because my take without seeing much on the property is the quotes you're receiving if it's that nice of a property IS the market right now and why would you think there would be portfolio money out there that would be better? All investors are looking for better yield right now; if anything portfolio would be worse, at least in my opinion.  Sorry if it comes with a tone.  It's not intended to. 

@Jory A Hicks...I 2nd @Stephanie P....you need to either find a broker or lender first, once you get it under contract, and not order your own report because it won't mean anything as every money source has their own caveats.  But given that it's mid-construction, you're going to have to find the right money, as it's few and far between right now, given the market texture.  Do you have ground up/heavy rehab experience?   I'd want to hear more details.  Just my $0.02. Thanks,

@Emilio Pereira ..it exists out there, but as other posters have mentioned - few and far between and will be expensive.  Most lenders already have been at decreased cash out leverage to 75 or even 70%, respectively.  But 80% is out there. 

@Paul Moersen...if I'm understanding your posting, the home will be free/clear because your use of the HELOC to build? If that's the case, what type of leverage on the new spec home were you looking for and/or what could you be comfortable with? What type of market rents would the property command? I'd like to hear more.

@Saman Pari...what location is the property in?  Question is too vague.  Example - I have hard money lenders that don't even do appraisals in CA, but it depends on scenario and where.

@Nicholas Hofmann...2nd @Stephanie P.  and then I'd have to recommend myself LOL 

@Burt L...I responded to another of your posting of similar thread, but you should be working with a lender that can lock in rate at submission on 30, if not 45 days, and be able to easily close in that timeframe.  All the lenders I work with allow for locking at loan registration, so my clients don't lose ground on pricing.

@Burt L....On a cashout refinance, there really should be no reason to see bank statement or any type of asset statements unless the cash-out is not enough to cover the reserves requirement of the lender. If the cash-out is minimal or short, then there's a reason. I do cash-out refinances for investors all the time and never ask for bank statements assuming the cash out is a decent amount of funds. I don't know who you're using, but I feel like I'm missing parts of the story as if your cash out is more than 6 months PITIA, you shouldn't need any asset statements (based on lenders I work with - I'm a broker) and your DSCR should never be falling during process, assuming you have a locked rate in place.

@Marc Stevenson..ME (full disclosure, I'm a mortgage broker). Any type of DSCR lender should be giving full value after 6 months of ownership...5 years is wild if that's a guideline with lenders you know of. 20 is going to pay off sooner obviously but I have clients many clients taking 40 Year Interest-Only $$ (10 Years I/O, 30 year fixed). Prepay ends in 5 years or less. Cash flow to the maximum.

@Lori Bray.. late to this thread, but going to give my $0.02. Do these properties have anything owed on them? If your expenses are too high for your income, but your rentals carry themselves and your credit is decent, then I'd suggest looking into a DSCR loan, if you actually need the cash out. DSCR = debt service coverage ratio. It's the calculation used to make sure the property cash flows and as long as it's above 1.00, you're good. You can go less, but you'll pay for it. DSCR = gross rents / PITIA (proposed payment). These types of loans don't take into account any of your personal income whatsoever or even care if you're working, etc.