All Forum Posts by: Jonathan Taylor

@Benjamin Sulka conventional underwriting standards with a few overlays but nothing we lenders haven't seen. No AMI restrictions which is huge for high cost of living areas like LA.  

@Samantha Springs look into NACA loan if you own zero real estate. This program advertises 0 down, 0 closing costs. I closed my house hack in Los Angeles with this loan. They lend on renovations as well (if you want to renovate a property) on a 30 yr basis.

This is a silver bullet though, once you use it you cant use it again until you havent owned real estate for three years. 

@Alexander Scher I would run your numbers on LTR only. STR lenders are asking for property STR history and have an experienced operator owning it. This isnt the case for ALL lenders but is becoming a more common stipulation as the STR markets have peaked according to many capital markets and analysis teams.

It is also advised to run your numbers on conservative UW so just in case any regulations limit your ability to operate STR/MTR you can still operate cash flow positive on LTR.

@Havan Surat lots of great info in this thread but @Greg Downey nailed it. There is too much risk for a lender to lend to a new investor with no liquidity/no experience for them to justify 100% LTC.

@Richard Phillip Lewis what is the motivation refinance out at this time? If you are at 6.25%, you wont get much better if you refinanced in this market for owner occupied loans. As most have stated here, I/O loans are not available to owner occ properties, only investment properties. If you have a good deal of equity from the forced appreciation, HELOCs are a good way to use that equity in this market. Just my two cents.

@Matthew Lindsey one question for your scenario, are the current occupying tenants an LLC (no personal tenant names are written in the lease) or are the current tenants' part owners of the LLC that is on title?

Titles seasoning isnt an issue as my lenders require only 90 days. Do you have any questions you didnt get answered?

@Hunter Nall 80% LTV on cash out is rare in this market. I would price out 75% LTV since I am seeing those deals pencil in some markets but ultimately the loan amount will be guided by the DSC ratio.

Regarding your 6 month seasoning, there are lenders who can do cash out refinances at 90 day seasoning, so if you project is done and rented, we can start your refi right away to check pricing and LTV.

@Nancy Noe sounds like you are dealing with low ball flippers trying to get a good property. Im coming from the lending side, but would maybe help you better communicate what is possible when dealing with the next set of buyers. Could you elaborate on what the numbers are? What do you think its worth, what are you being offered but more importantly, what is preventing you from keeping the property?

@Vincent Pflieger Great idea but if the property is zoned for multifamily and you build prefab, that could work but clearing this idea with LADBS would be the first step. Hooking up utilities and plumbing would be another hurtle as these permits are not cheap. Last hurdle would be financing. This is an out of the box ground up build with land purchase so the pool of lenders will be limited. 

I don't want to rain on this idea so start with the city planning and see what they say. 

@Dave Craig can you share what you have been presented and the details of the deal (purchase price, unit count, etc)? 

Its hard to advise on a deal without the needed info. There are a variety of lending options but each lender has min loan amounts, min cost per door amount, location, experience, FICO, etc.

Small balance lenders in commercial MF (sub 5 mil) do have loan minimums so if this is a low value property, you will have a challenge financing it.