All Forum Posts by: Joseph Coleman

@Arthur Iskhakov 

You must cover the assumption gap. There is a high likelyhood that this loan can be assumed if you meet the original underwriting criteria. Unfortunately there is a lot of misinformation out there on this topic. I would refer to an expert like assumption solutions when dealing with a loan assumption. 

@Craig O'Boyle is the president of the company and recently appeared on one of the BiggerPockets podcasts as an expert on this topic. 

-Joe

@Benjamin L. I cannot think of any negatives. This is not advice, but when I am inquiring about financing for myself I apply with about 5 lenders on the same day so that I can compare the rate and terms on the same day. I also provide the same loan details to each lender so that I can compare. 

The CFPB has detailed info on the lending process.
Check this out! 
https://www.consumerfinance.go...

"Getting multiple Loan Estimates won’t hurt your credit, so long as you get them all within the same 45-day window." - CFPB 

@Anne Grello I know how that feels! Every offer is an opportunity to learn and it is far better to lose a property than close on a property that you paid too much for. 

When your offers get rejected, make sure to put in a backup offer! A lot of homes fall out of contract for reasons that have nothing to do with the property. Your agent may not even think about putting in a backup offer so you may need to stay on top of your agent and tell them ahead of time if you do not get the property to immediately start working on a backup offer. That is how I got my most recent property. 

@John Anderson I would recommend connecting with a great broker (who has access to conventional and non-conventional products) like Ty Coutts (above) or DSCR lender to walk through your scenario. For more DSCR loans they actually prefer or require the properties to be in an LLC.

Ultimately you are probably best off comparing DTI based and DSCR based loans to see what works best for you, which is why a broker could be more helpful for you.

Hi Jason, 

Can you share a little more about what you are looking for help with?

e.g. Are you looking for hard money lenders? 

A few thoughts in the meantime, 

-We know the classic rule of thumb is to pay 70% of the ARV after Costs. In this case, that would make your purchase price $311K. But you mentioned that the ARV is conservative. I don't see this being a deal breaker but using debt on a deal like this could be prohibitively risky because if it doesn't go as you expect, the debt service would amplify your losses. Once you add your debt service (~10-14% including points) this looks much less attractive.

-Most Hard Money Lenders (with relatively low rates) will go up to 75% LTV, which means you need to put up about $100K.

-Have you exhausted all of your other funding options? Can you not get a conventional loan due to damage?

@Robin Simon Thanks for the info Robin! 

Out of curiosity, 
-Do you have any tools or resources you recommend for evaluating a cashout refi to calculate how return on equity is impacted for different financing scenarios ?
-Under what situations are you finding that investors are doing cash-out refi's even when the rate today is higher than their current mortgage?
-In the DSCR world how common are pre-payment penalties or situations where a loan can be called due early by the lender for any reason? How does this factor into choosing whether or not to refi?

Thanks! 

@Terra Padgett 
Quick tip! You can search "JWB BiggerPockets reviews" on google to see several posts from investors about their experiences. 

Searching on BiggerPockets Mortgage Lenders and Hard Money Lending Directory is a great place to start checking reviews. 

Feel free to try out BiggerPocket's lender matching tool (in beta) to see what our investor concierge recommends for lenders in Jacksonville. 

Also, I love the Jacksonville market. Godspeed on your lender search! 

@Jesse Holsapple Thanks for writing in the forums. However, we do not allow direct soliciting in the forums. Feel free to reach out to me directly if you need help navigating BiggerPockets as a lender. 

@nathan smith

@Nathan Smith searching on BiggerPockets Mortgage Lenders and Hard Money Lending Directory is a great place to start. You many also find local banks and credit unions with a simple google search.

If you find a great broker they can search multiple lenders and compare options and rates. This is by far the most efficient option but they charge a fee for their services. 

Feel free to try out BiggerPocket's lender matching tool (in beta) to see what our investor concierge recommends for lenders in Indiana on multi-family. 

@Cheryl J McGrath Thank you for your question. I manage our relationships with lenders on BiggerPockets and glad to help answer any questions you have about our Hard Money Directory or lenders in general. 

BiggerPockets does not endorse any of the lenders on BiggerPockets.com and I would always recommend doing your homework to make sure a lender is a good fit for you.

That being said, I can tell you that, 

-Lenders on the first page of the HML directory are lenders that I work with directly and have researched on the BBB, NMLS, AAPL and checked their ratings on BiggerPockets and across other organizations. That being said we do not have a formal vetting process and the status of a lender on the NMLS or their AAPL membership (for example) may change so doing your own homework is very important. 

-Lenders on the second page and beyond of the HML directory simply signed up for a Lender Premium account.

Tips for vetting lenders:
I would break this down into 2 questions, 

1. How do I know if a lender is ethical and in good legal standing? 
2. How do I know if a lender provides great loan products and great customer service?

1. 
- If the lender also does conventional loans you can search them on the NMLS website here. 

- If they are a non-qm Hard Money Lender you can see if they are a member of AAPL, which also adds some credibility in my book. 

-Do a google search to check reviews and see if there is ongoing legal disputes. 

2. 
-Read this article and ask your lender where their capital comes from. The last thing you want is your source of capital to go away just days before closing. 

-Interview your mortgage originator. Your experience with a lender comes down to what loan originator you are working with. This is the person that is actually going to be picking up the phone when you call and will be critical in your experience working with a lender. 

-Check their reviews on BiggerPockets! Look at the people who left reviews to read about first hand experiences. 

-Ask people in the forums about their experiences with this lender. 

-The book "Lend To Live" gives extensive tips for vetting private money or hard money lenders. 

With all of that said, the most important thing you can do is speak with borrowers who have worked with a lender to learn first hard how they work with their clients. 

Let me know if you have any followup questions!