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All Forum Posts by: Kyle Deutschmann

Kyle Deutschmann has started 8 posts and replied 372 times.

Post: In search for flexible hard money lenders in my area

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Bernard Wallace:

Collateral-Based Loan for Active Flip Project

I’m reaching out to explore financing options specifically a bridge loan, hard money loan, or any asset-based lending product your company may offer using a fully owned investment property as collateral.

This is my second real estate flip. I’ve been hands-on throughout the process, from acquisition and renovations to budgeting and timelines. I’ve already put significant capital and sweat equity into this project and am now seeking short-term funding to bring it to completion. My goal is to complete this renovation efficiently and sell the property based on market conditions.

Due to a current credit score below 600, I’m looking for a non-traditional lending solution. I’m not asking for unsecured credit instead, I’m offering a strong equity position as collateral, with a low loan-to-value ratio and a clear exit plan.

The property is located at Wisconsin. It is held under my LLC and is currently free and clear of any mortgages. I purchased the property for $52,000 and have already invested $35,000 into renovations, bringing my total investment to $87,000. The estimated after-repair value is $165,000. I am seeking $20,000 to $25,000 in additional funds to complete the project. I also have $13,000 available in personal savings to contribute toward the final stages of the renovation.

I’m seeking a short-term funding solution to bring this project to completion, with a strong exit strategy in place. I believe this project presents a mutually beneficial opportunity, with a low loan-to-value ratio and significant built-in equity to protect your investment.

Additionally, if your lending structure allows co-borrowers or co-signers, I’m open to adding one to help strengthen the application if that helps meet your lending requirements.

Please let me know if you offer any loan programs that align with this type of project, and what documentation or next steps would be needed to move forward. I’m ready to proceed and can provide any further information you may require.


Best regards,

Bernard 


I can lend up in Wisconsin. Happy to chat and see if we can help!

Post: I Need a Down Payment!

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Kevin Mello:

@Kyle Deutschmann thanks but I've been told the DSCR loans still require the down payment and if it's commercial I can't stay living in it. Is that right?


Yes DSCR loans require a down payment. and they are business purpose loans so that's correct you cannot technically live in the property.

Bridge loans do not require a down payment if you have experience and if it's a light rehab with a high enough ARV.

Post: DSCR Loan Question

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Ty Soule:

Hi all,

First post. I have been trying to learn more about creative financing. DSCR loans seem interesting, but having trouble finding a solid explanantion for them. Looking for some guidance on them, and how they work, especially for new investors with small amounts of cash (less than 50K).


Hey Ty, DSCR loans are THE tool for rental property investors to scale without worrying about supplying tax returns or W2s to your lender.

DSCR stands for Debt Service Coverage Ratio, so if the rental income covers the debt payment then you should be good to go in terms of income qualifying. No DTI calculated.

Happy to chat if you have any further questions about this type of creative financing! 

Post: How to overcome debt to income ratio

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Andrea Castor:

We've been real estate investors very part time for about 15 years. Currently have 3 long term rentals with a commercial loan not in an LLC.

About 5 yrs ago we bought land. The plan was to sell our existing house, move into one of our rentals, use all the cash to build and then use the equity to invest in real estate again. 

Fast forward about 4.5 yrs and we’re living in the new build. Value conservatively $1.5M and we owe $200k on the land at 5%. We were aiming for a $900k equity line but finally got a local bank up to $750k. It would be a line of credit with a check book where you only draw when a deal comes up and pay on just that amount. That would allow us to pay cash for a property, rehab it and then get financing on it while paying back the equity line. 

But now we’re running into debt to income issues. This same bank approved our land loan with approx $9k gross per month, a $2,500 house payment and $3500 rental payment. Now income is around $13k gross per month, $2000 land payment, $1000 van payment (that we will pay off with cash when equity line is open), and $3400 rental payment. They have this at almost 80% debt to income…I assume with taxes and insurance but counting no rental income. 

Is there another avenue we should be looking at the use our equity? 

Our first plan is to convert space over our 4 car garage (approx 1200 sq ft) to an Airbnb space on our farm for about $80k which would generate $40k+ a year at 50% occupancy. We’re also working on a VW bus to Airbnb conversion and we have a 40x24 space in our barn plumbed and framed for a 3 bed/2 bath barndo Airbnb. 


As others have mentioned, bridge/residential transition loans might be your best bet for fast acquisition and rehab financing. You can use it either just for purchase financing or you can include both purchase and rehab financing, up to 100% of the deal if it's a high enough loan to ARV.

If you have access to a HELOC, I have clients who will use me just for the acquisition financing and then use their HELOC for the renovations, and then come back to refi the property into a 30 or 40 year fixed rate DSCR loan once the rehab is complete where we don't consider your personal DTI. Happy to chat if you're still looking around for new options!

Post: Building our team

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Jonah Slove:

Hey y'all! My partner and I are highly considering Indianapolis for our next market. Between the two of us we have 15+ doors, mostly in ID and UT. We are looking to build our team and scale!

We are currently looking for few agents, wholesalers, DSCR lenders, hard money lenders and contractors! Please reach out to connect and discuss if we are a good fit!


 Hey Jonah, awesome progress building the portfolio to 15 doors! Happy to chat and see if I can help on the next one. 

Post: Looking for a cash STR DSCR loan to replace my renovation loan

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Leon Daquin:

I am in dire search for a nicer - termed loan to replace my current Renovation loan. The property is finished and making a lot of money through the Six short-term rental units that I have created. It’s been up and running since January making approximately $20,000 per month. This is a single-family home yet. I have a. Where it operates at six individual units with six entrances, sort of like a mini resort, and it is in the heart of a very popular vacation rental area of Fort Lauderdale. I’m at the end of my Cash and I’m needing something quick. If anyone has any suggestions, I would greatly appreciate the advice. Thanks.!


 Awesome deal! $20k/month is great cash flow for one property. Happy to chat and see if I can help. 

Post: I Need a Down Payment!

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Kevin Mello:

I’ve been blessed with a rare and extremely beautiful opportunity. My landlord wants to sell me the 5- family building I live in but since it’s consider commercial I need 170k - 200k which I just don’t have. The basics are they will sell it for 200k under appraised value to ensure a trusted individual will take care of it, otherwise she will sell for full appraisal to a stranger. Is there any way I can get the funding to pull this off?? I’m thinking of starting a C corporation to keep my finances completely separate


Wow awesome deal! I would open an LLC (I've used Zen Business to create LLCs for myself - others I know have used Legal Zoom or a local attorney) and consider partnering with another experienced investor on your first deal. Managing 5 units for the first deal isn't impossible, but it might make you feel more comfortable and confident having another set of eyes and ears on the deal from someone who has done this before.

You can get a 30 year fixed rate DSCR loan on a 5-unit property for financing, OR you could use a bridge/residential transition loan if you need to close quickly or include renovation funds in the loan.

Post: Starting off with 32 units

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Cody Swyers:

Hello everyone,

Has anyone on here ever started off the investment journey with a 32-unit property or something comparable to that? If so, how did it go? what kind of financing did you use? and what did you do to come up with a down payment? I'm looking into the possibility of investing into a property like I stated above. I would need to get a loan for around $1.5 million. The down payment would be around $300k. After running all the numbers and saving conservatively for cap ex and other maintenance it would cash flow around $2500 - $3800 depending on vacancy. My initial though was to apply for a DCRS loan and either find a hard money lender or try to acquire a business loan for the down payment then do a cash out refinance in a year or so to pay off the down payment loans. Let me know what you all think, like I said I'm very new to this and am probably missing something.

Thanks in advance for any info,


 As others have mentioned, that's a big leap from owning one single family home/a few acres with your family to investing in a 32-unit deal. If you want to make that leap, I'd recommend partnering with an experienced investor on that first deal as it will be hard to find financing for that type of deal with zero experience.

If the property needs to be rehabbed, a hard money/bridge/residential transition loan for acquisition and rehab would be the easiest and fastest way to close and get the money you need to fix it up. 

Most institutional DSCR note buyers seem to allow up to either a max of 4 or 10 units for a 30-year fixed rate DSCR loan. For 11+ unit deals, agency multi-family loans could be the best bet for long term financing once the property is rented and stabilized.

If you don't want to partner with another investor, I'd recommend sticking with a 1-4 unit property or maybe 5-10 units at most for the first one. 

Post: 100% financing does it exist?

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Michaela Hayes:

I am currently seeking a lending partner that offers 100% or near 100% financing options for new construction properties in the Philadelphia region. With over 10 new construction projects to date. I am looking to optimize my funding for three upcoming deals.

We can do 100% LTC financing on fix and flips, but not new construction. On new construction I can lend up to 90% of a permitted lot and up to 100% of the vertical improvements/construction. 

Post: Lending on investment properties NOT in LLC

Kyle Deutschmann
Posted
  • Lender
  • Baltimore, MD
  • Posts 402
  • Votes 197
Quote from @Nishan Akwalia:

Hey I have a few fully paid off properties I would like to take equity out of. They are currently under our personal names and I would like to keep it that way. Are there any DSCR loans I could obtain with it not being in an LLC?


Hey Nishan, I believe we spoke previously. Yes you can obtain a DSCR loan without it being in an LLC. Happy to reconnect sometime!