All Forum Posts by: Justin Pumpr

Hey all,

I want to acquire more proeprties and the best way to do this is with OPM. I'm wondering how you go about paying back the private lender when the property will be a buy & hold.

Example:
Purchase a property for $200k using seller financing and manage to get 5% down with a 0% rate over 30 years with no balloon. Down payment and closing costs will be roughly $15,000 which will be the amount I need from the PML. 

PITI is ~$750 Propery will rent for $2k/month

The PML lends the money at 10% interest and want their money back in 6 months. Apart from saving the cash to pay them back their $15k, how can you structure this so it's works for myself and the PML gets their money back?

I don't want to refi the property after 6 months because then I'll be paying a much higher rate and the property won't cash flow as the monthly expenses will now be around $2000 with PITI ~$1550. That's assuming the property is worth at least $250,000 to be able to cash out $205,000.

Any ideas?

Hey @Tony Severance I mostly invest out of state, so I wouldn't need financing in California. Do you have some time to chat?

Cheers

Hey all,

I'm at the point where I'm missing out on deals because my funds are tied up. I think I can find someone to come in on a second position to front the down payment, but I'm also having issues with recouping my costs because of lengthy seasoning periods. What I'd LOVE to find (if it even exists) is a lender that can:

- fund 90% of purchase + 100% of rehab

- defer payments until the project is complete

- refi 100% of rehab loan (100% of purchase price + 100% of rehab) including deferred payments into a fixed 30 year loan without any seasoning (or with at max a 3 month seasoning period). I'm fine if there is an 80% of ARV limit on this as long as I get all my initial investment (including the down payment) back

The main reason I want to defer payments is the HML costs a significant amount each month and that's eating into my ability to build up my reserves (if I'm rehabbing 4 or 5 properties that can be $10k per month in loan fees).

Does what I'm looking for exist anywhere?

The current value isn't $275k, that's the ARV. Don't worry about the specific numbers too much, they are just examples I'm more interested in the how than the why :)

Hey all,

I've been watching a lot of subto and seller financed videos, but I'm still unclear about h ow you analyze and structure the financing side of this. A couple of examples:

1) Seller Finance (I'll use easy numbers)

Purchase price $100,000. $50,000 in repairs. ARV of $200,000.

How do you structure this deal? Say the seller finances the full $100,000 at 0 down and 0% rate (I'm dreaming, I know). I then need to get a $50,000 loan to rehab. I can then take out a new loan for $150,000. Do I do this, or do I just cash out the $50,000 to pay off the rehab loan? If the latter, how do I go about having two loans?

2) Hybrid model

Purchase price $150,000. The seller has $50,000 left on their mortgage and the property needs $50k in rehab with an ARV of $275k. I get he deal subto on their existing mortgage and the seller seller finances the remaining $100k. I then need another $50k from somewhere for the rehab, so now I have 3 loans. Similarly to above, which loans do you pay off when you refi?

Cheers!

@Marc Rice Yes please send some referrals my way! I'm getting a solid selection of lenders to choose from, so the more the merrier as there's been a huge range so far. Seasoning has been the biggest issue since I paid in cash. I can either get my money back sooner, but pay a higher rate, or get a low rate, but have to pay loads of points to get it, or the LTV is too low. Nobody is really ticking all the boxes at the moment.

Thanks to everyone for the input thus far!

@Timothy Hero I have rates in the high 3s and low 4s on the bulk of my portfolio, so refi-ing doesn't make sense as it'll reduce my cash flow. I have no issue with them being on my credit profile, at least not at the moment anyway. @Eugene Neal so it sounds like a portfolio lender may be my best bet since my credit profile is solid. I'll DM you to see if this makes sense.

Cheers

Hey all,

I'm looking for some advice on which type of lender to use and then looking for referrals for that type of lender in the Columbus area. Some background:

I own a few properties in Columbus and Dayton, OH (a mix of SFR and small MFRs) all of which are financed using traditional Fannie/Freddie lenders. I'm getting close to my 10 loan limit and would also like to work with someone who is more investor friendly and hopefully is less hassle and still has good rates. I currently have a duplex that I'm BRRR-ing and looking to refi in a couple of months. I also want to buy another 20+ units this year, ideally as one building, but it may be split over a couple depending on the deal. I'm looking to cash-out-refi on these too expecting to only get 70% LTV (although if I could get 75% LTV that'd be great). All my properties are cash flow positive and my FICO fluctuates between the high 700s and low 800s.

I'd like to find a lender who can facilitate all my new properties. So my question is, when considering these types of lenders, Commercial, Portfolio, DSCR, or Private which type of lender would be best suited for scaling my portfolio?

Cheers,
Justin