All Forum Posts by: Jeff Moore

Felipe Munoz Thank you for answering that, much appreciated.

Kimberly Harten Hi Kim , is your lender basing the LTV on the appraised value of the property or the purchase price? I would assume it's based on appraised value. If so, I can't imagine that you would have to put 15% down because that equity is already there in the deal. If you were purchasing the property at the appraised value, then yes, you'd need to have a down payment to inject equity in order to meet the LTV requirement. It depends on your lender's requirements I suppose. Hope that helps a little bit!

I know of a hard money lender that would operate in PR but only for much larger amounts, unfortunately. 

Just for those of us who might not know, can we define NNN?

Ray, I'm not a guru but I think I can answer at least a couple of your questions, not in any particular order. The 3.5% Margin is a fixed percentage that is added to the index value, in this case the 5 year treasury rate. The margin is fixed throughout the life of the mortgage while the index value is what will move. The two added together is what your fully indexed interest rate would be. So, the first 5 years your rate is 5.5%. Then it switches to whatever the treasury rate is at that time + 3.5%. As an example, July 20, 2017 5 yr treasury rate was 1.82%. So hypothetically say today was 5 years from now, your new rate would be 1.82% + 3.5% = 5.32%. Keep in mind if you're uncomfortable with an ARM there is commercial financing available with fixed rate terms all the way out to 30 years. The rate can be slightly higher (maybe a quarter to half a percentage point) but it would be fixed. Hope this helped!

The other question I had was whether you've had an appraisal done already and whether your business is a registered entity, and is its sole purpose flipping houses? My apologies if I got the order of your priorities wrong, but either way it wouldn't matter. We can talk more if you'd like.

@Rafael C., just so that I understand what you're saying. You want to:

1. Pull 150k equity out, pay the 50k off and keep 100k

2. THEN get 125k LOC.

Just a couple of questions before I can offer any kind of advice. Is this a multi-family or SFR?

There are resources that will allow you to refinance to pull the 150k out and get an equity line of credit at the same time, immediately. No waiting. 

I will help you with this if you want to get ahold me. 

@Jack Middleton

Jack, I'm a small business financing consultant. There  are funding sources out there that are specifically tailored to providing financing in that "space" between what you have for equity injection and the amount of financing you've been approved for. PM me and I can go into more detail. 

Not to piggy back, but I'm fairly new as well. Can you expand upon a few things? What is EMD? And what are some examples of contingencies that would work well in a contract?

John Montgomery Thank you! I appreciate that. Tony Hightower Thanks! Aaron Lovett Thank you! Much appreciated, I will.