All Forum Posts by: John O'Leary

Hey Mike,

I'm in the Orlando/ Maitland area. Feel free to reach out.

If the seller finance terms are good enough the wholesaler is likely to keep it for themselves. Your best bet is to go direct to seller. Target free and clear properties and market to them through whatever strategy works best for you. 

You can implement this strategy in any market if you make the right purchase. First, determine what your lender offers in terms of Loan-to-Cost (LTC) for acquisitions and the maximum Loan-to-Value (LTV) for a seasoned cash-out refinance. With this information, you can calculate the maximum cash-out amount on the refinance. Once you have that figure, estimate the monthly payment and potential rental income to calculate your DSCR ratio, ensuring it meets your lender's requirements. Feel free to reach out if you need assistance.

You might consider approaching larger banks for a HELOC on an investment property, as most smaller banks and credit unions typically lend only on primary residences. If you have strong credit and a good relationship with your local bank, they might be able to offer you something suitable.

For lenders offering DSCR loans that don't use DTI, only cash-out refinance options are available. If you opt for a DSCR loan and choose to escrow the repair funds, you'll only pay interest on the amount as you use it. These loans usually have a minimum loan amount of $100,000. If you plan to sell the amount of interest you are paying might not be worth the hassle of a full doc loan.

Find a local lender, and set up an affiliate program. They are constantly talking to prospects that qualify and need a deal. 

Hey Louis, 

I'm in Orlando/Central Florida and there are a few things to remember. 

1. Purchase Discount: It's crucial to buy properties at a deep discount if you plan to BRRRR and get cash back. Most investors don't do the refinance calculations at the time of the purchase and they find themselves stuck.
2. Bridge Loan: Most lenders on BiggerPockets will offer 85-90% of the purchase price plus 100% of the rehab costs. The goal is to buy, rehab, and refinance as quickly as possible.
3. Loan Term: While most investors aim to rehab within 6 months, issues often arise. I recommend taking a 12-month term to avoid extension fees. Avoid escrowing payments and opt for the longer term, even if you don't think you'll need it.
4. Seasoning Period: Many lenders have a seasoning period of 3 months on the platform, while others might require 6 months. Some have no seasoning period at all. This is important to ask about.
5. Pricing: Think of a chart with X and Y axes—X is your credit score, and Y is your LTV. The more cash you pull out, the higher the LTV, which increases the interest rate. Ensure the DSCR calculations work with the high LTV and your credit score, especially if the lender won't use MTR or STR income.
6. Lender Criteria: Some lenders won't work with new operators, some only use market rent, and others will use STR estimates or income statements from property managers with similar properties.

I hop the bullet points make it easier to understand. Best of luck!!

This is not a fee that any Lender charges on Fix and Flip, DSCR, or Ground up Construction. Origination fee, processing/UW fee, and maybe the appraisal are typical. If you proceed do not pay this fee upfront.

Full doc, 20% down on purchase and rehab, hard credit pulls, for a loan you intend to get in and out of. Why would you consider this a better route for a value add project when you can put 10% down just of the purchase price get rehab funds?

What @Brittany Minocchi outlined is correct. The only other option if buying turnkey is to do a small portfolio loan. Each property typically needs to be valued at $50,000, and depending on the lender you need a minimum of 3-5 properties. Portfolio loans typically have higher qualifying DSCR ratios (1.20+)

Chris Duke of Elite Indy Group is a great agent and large investor in the IN market. He would be a great connection to have.