All Forum Posts by: Jonathan Taylor

@Tyler Rabanus the numbers on this deal don't pencil. If you are buying an SFR for 75k, put 175k into the deal (total cost is 250k) and it appraises for 220k, you are negative 30k before any loans are considered. This does not read as though its a smart investment on the surface, and secondly, there isnt a lender I know of that will lend on renovations that exceed the purchase price, especially a renovation that is 2.3 times the purchase price. Your mind is in the right value add space but this isnt a deal.

@Quinton Oake You can find close to those rates for DSCR loans in this market with much less PPP. Usually 3 or 5 yr declining, what is the reason you are deterred from institutional lending for DSCR loans? I use verified lending companies not banks for these loans and my clients have had great experiences.

Hi Andrew, we offer portfolio loans of this caliber as long as the min property value is 50K +. Portfolio capital markets have improved dramatically this year and are more competitive than Q3/Q4 last year. Send you a dm to see how we stack up. 

@William C Bruckner I would work on your credit to get it above 660 mid score, above 680 ideally. You have a lot better/cheaper lending options with a higher score. DSCR options would be best as local banks require higher FICOs most of the time but each bank has different UW guidelines.

@Kevin Vasquez what you are being offered is close to par on what you can expect for a low value refinance. A declining PPP is standard for DSCR loans (3/2/1). Local banks would be your next bet if you want something competitive but you would run into the same issues with loan value. I would say, you may be able to get lower rates than mid 8s as my lenders are high 7s for a similar scenario but you may be tripping over dimes to save nickels.

@Hunter Harmon you will run into this in Socal, I know I did when I was shopping for my house hack. Look into the NACA program as this was the same one I used for my four unit in Los Angeles. As a side note, House hacking in Socal is a slow game. It took me about three years, after improving the units, raising the rents yearly and reducing my costs, to break even. So if you can get a property, that is the first step, over time, it will start to make you income. Be patient.

@Jeremy Porter I have a lender that allows cash out at 90 day seasoning based on full appraised value. I Dm'd you as this sounds like you would benefit from it. 

@Jose Morales you can pull cash out, up to 75 LTV, as soon as 90 days and base the 30 yr fixed rate loan on the newly appraised value. This assumes the property can debt cover at 75.

@Miranda Yanez I have a lender that goes up to 80% LTV as long as the property debt covers. I own in Saint louis and the cash flow in that market is a good option for max leverage. I Dm'd you since I know that market well.

@Joseph Mulero the rents began to cover when I was still living on the property. We were able to increase rents over the years to keep up with the Market.