All Forum Posts by: John O'Leary

Lenders do this all the time. It's called a YSP instead. 

Welcome Paul. If you need any help feel free to shoot me a DM. 

Munson Heating and Air. 

Jason Goldfarb is a legend from that neck of the woods. 

1.) This has nothing to do with no fee's. Rehabbed comps, are rehabbed comps. As-Is comps are AS-IS comps. They shouldn't need to drive anywhere. BPOs for "Most" lenders have no fee's. If you have a rehab project and your lender is doing a full appraisal you're wasting time. If you plan to keep it, and your seeking long term debt the lender will require a full appraisal.

2.) No lender offers 100% for everyone so there would be major caveat to that. 100% of rehab costs are normal. If they are giving you 100% of rehab costs why do they encourage you to use private money in #3. Is the rehab dutch or non dutch?

3.) Why? In #2 they give you 100% rehab financing. 

4.) As should be with all lenders.

5.) This makes no sense at all. Lenders take back properties when the borrower doesn't pay.

6.) Insurance typically covers the loan amount and the lender will have specific guidelines. Sounds like you got the wrong policy and the correct one was more expensive. The lender isn't making money on insurance. 

It really depends on your strategy. If you're looking to buy turnkey, you might find a property that was previously used as a short-term rental (STR) but underperformed due to poor management or only seasonal use. This could be an opportunity to step in and optimize the property. If your goal is to scale while minimizing your initial out-of-pocket expenses, consider searching for off-market value-add opportunities via investor lift, or local wholesalers. These are properties you can rehab and furnish yourself, with the potential to refinance and pull out some or all of your initial investment. In Florida, coastal areas tend to offer the best opportunities for STRs, especially given the saturation in the theme park areas of Central Florida but I'll let the full time operators chime in. This is what I see on the lending side.

Hey Matthew!

Welcome to Orlando! I'd be happy to make any introductions to help build your team here in area, and plug you in to any of the meetups. 

Is this for a DSCR loan?

Most lenders will cash out at 75-80% (max) on the repaired value with three months seasoning. So if you buy distressed and build in some additional equity via the rehab you can cash out when securing the long term debt. The cash you receive from a cash-out refinance is not considered taxable income because it’s essentially a loan. You’re borrowing against the equity in your home, so the money is not income but rather loan proceeds that you’ll need to repay.

The pros of a cash-out refinance for most investors include the ability to build their portfolio and scale their real estate investment business.The cons could be trading a lower interest rate for a higher one and increasing your loan-to-value (LTV) ratio.

There are value add products for multi-family 5-20 units that do not use DTI to qualify. Build in some equity via rehab and then refinance into a DSCR loan.