All Forum Posts by: Jesse Kerr

@Chad Dickenson we use Aloha private lending for our front-end purchase and rehab, then refinance into their 30-year product. Rates are in the mid 4's for their 30 year. I believe you can refi after 3 months as long as you've used them for the acquisition and rehab. Hope this helps!

I've done cash-outs with no seasoning up to 80% LTV on 30-yr commercial loans for residential properties. Rates are in the mid-5s for maximum LTV, assuming good credit.

The problem with commercial loans can be the cashflow portion. The property has to meet DSCR requirements instead of DTI with conventional, which can honestly be good or bad. Given that you're in Thurston county, it should be okay (compared to core Seattle). The other issue may be the price point. Can you give us more details on the numbers, ie. how much are you buying it for, how much rehab are you putting in, what's the ARV, and what will it rent for?

Would be nice to know your hard money terms and loan amount too. Hard money in our state can vary widely from 12% and 3pts for 6 months to 8% and 1pt for 1-yr, depending on your experience and which lender you're using.

There's also another trick you can do in order to do a conventional rate-term refinance and get cash-out without seasoning, all the while lowering your rate and increasing your LTV by an extra 5%. Just need to convince your HML to write the note for the amount you want (ie 100% LTC or more) while still giving them the appropriate down payment that they hold on the side. That or bring in gap funding and record that 2nd lien at the same time (assuming your HML allows that). Of course, this only works if there's enough margin in the deal to support a cash-out.

If you want cash out within the 1st 6 months you can do that at 3 months with some portfolio programs. The interest rates tend to be a couple of points higher than Fannie or Freddie, but you can also look at buying the rate down if that makes good financial sense? With these loans, you can do them in the name of an LLC and the LLC can be on title, but in most cases you must also give a personal guarantee.

Trade offs, faster cash, at higher rates, or wait out the 6 months? What fits your scenario?

You can refi based on the appraised value after 30 days but it won't be with a conventional loan product. There are commercial products available, however with commercial based products expect a higher rate