All Forum Posts by: Jared Rine

@Jorge M Kuljis..as mentioned by some other posters, lender dependent. How many units?

@Shantanu R...I'm not an expert in your market but do have experience in construction lending, both residential and small commercial.  There's a couple things - you can get bridge funding now or some type of private money bridge/construction loan that will give you acquisition funds, so that you can acquire said building and then take the time to get your permitting squared, and then roll into construction portion once ready.  If the property was vacant, you could possibly get a lease option to purchase locked in, get your permitting ready while 'renting' and then once close to ready, execute the option, but it sounds like that might not be feasible if the property has a tenant.  I'd be interested to hear more as I might be able to help, but it sounds like bridge lending now would be the way to go.  

@Olga Burninova..find a good mortgage broker and get the loan done. I would also be adamant about why they need 15% vs. 5% down. What it sounds like is an overlay at the bank you applied to.  Assuming that what you're stating is all checks out, you should easily qualify with a lender who doesn't have conventional overlays.  I'd say to call me if this was in CA. 

Most businesses will be eligible through SBA.  I don't know what you're buying/targeting but I'm assuming it will fall into an eligible type of business. Then it just becomes a notion of the financials.  That's all I meant. You really can't do due diligence until you see the business financials of what you're purchasing (generally speaking).  

@Rachel Payton..Assuming that you're buying an eligible business, SBA is usually the initial way to start - Least down payment, longest terms, etc.  Or it's going to be alternative business lender options (either fixed or lines of credit type options).  Feel free to reach out when you have more information. I usually only do business involving real estate, but I might be able to help. 

@Travis Hinnant...I'd be interested to hear what you're getting from your current sources.  No one is really doing anything special out there with pricing in the construction market - almost all lenders are in the similar bucket, so I think it becomes a question of what's important to you and besides pricing, is there anything else about your current lenders that you'd change?  And/or are you willing to go through a potentially more rigorous underwrite to get better terms (possibility, depending on what you've got on your end).  Full disclosure - I'm a mortgage broker actively placing private money construction loans.  Feel free to PM. 

@Torianne Baley...I'm speaking as an experienced mortgage broker in CA, but what concerns me is it seems per your posting that your running into many private money lenders offering 100% financing. That model almost doesn't exist anymore and only certain lenders few and far between offer that type of money and even then you usually have to have a good amount of recent experience as well as still have funds because you have to be able to carry the note, float the rehab for reimbursed draws, etc. And you'll also be held to a specific ARV, which could likely restrain the "100% financing."

If you don't have equity to bring to the deal, I'd recommend finding a partner and doing deals until your account is big enough.  Otherwise you're going to find most are trying to scam you.

Yes, anyone trying to grab an origination fee upfront is usually a scam, especially if they're offering 100% financing.

@Haarden Shah...as a broker who has closed multiple transactions with ESC on both DSCR + ground up/flip side, it's completely legitimate. I don't care for it, but it's part of their business model and you will be refunded less appraisal cost if they don't close. I will say they have closed on every deal where I had my client wire the deposit, so I'd vouch for them all day long @Jack Tulloch

@Arshiya Taami...full disclosure, I'm a mortgage broker providing fix/flip loans in CA + other states and other private/hard money loans.  I would recommend first off handling whatever credit issues or building your credit profile/score.  If you don't have much credit, I'd recommend also seeing if there is a way you can get a secured credit card (card that reports but it acts as a debit, so the money you spend is used).  There's more ways to build quickly, but too much to type here.  I would also recommend putting together more funds and build that as quickly as possible.  While there are lenders out there who lend to first time investors, it would also make sense to start partnering on deals and/or with your first few deals, to bring a partner in for experience, so you can be mentored while also getting hands on experience. As another poster stated, it's going to be an uphill battle in your current position. 

@Chris Adams...full disclosure, I'm a mortgage broker in CA and play in the smaller commercial loan sandbox.  Even for that, I think you're trying to do too much, so I'm going to help separate this out if I'm understanding correctly.  Even trying to do this private money would be a lot.  If I'm understanding your post correctly:

Cash-out should be possible, from what it sounds like. Bundling your current properties with the other $2.45MM property purchase is not likely. Maybe if both your properties were in the same state and the property you're purchasing too, but bundling these as-is, is unlikely. Also, using remainder of value/property equity to get a DSCR loan for another property - not happening. No DSCR lender is going to use remainder of value as equity vs. hard cash to the table.

It's worth mentioning, any property you're going to buy using DSCR has to be either SFR 1-4 unit or small multifamily, usually not exceeding 10 units max. "DSCR programs" don't apply to traditional commercial real estate as to what you're talking about. Hope that helps. If there's something missing, please reach out. Thanks,