All Forum Posts by: Kyle Deutschmann

Hello,

I am looking to acquire a 4-8 unit property in the $1.3-$1.8M range (as a STR investment).

The property is an SRO that would not be covered by a conforming residential mortgage.

Key figures:

- Credit Score ~800

- Could qualify with my income or simply on property cashflow

- First-time homebuyer

- Several years of documented STR experience

- Looking for a 10% down option (some have suggested a piggyback HELOC + conventional investment or DSCR)

- Willing to pay for a higher rate in order to get the higher CLTV

- DSCR above 1.5

Is this possible?

Situation:

I am currently under contract for a great deal on a property in Prince George's county Maryland and quickly coming up on the closing date. However, the deal went sideways and I am in need of creative financing. Basically, the seller wishes to back out of the deal due to price reasons and will not let my traditional lender get an appraisal. Furthermore, this same house was appraised by the same appraisal company last year and noted that there was an illegal stove and microwave inside the ADU on the property. This likely prevented the sale last summer and because that stove still exists in the ADU today would prevent sales through traditional financing. I have confirmed this with my lender and they would not be able to lend due to failing the appraisal. There is also no way that the seller would remove the stove as they no longer wish to sell to us due to pricing...

To make this deal work my wife and I are planning to house hack the property and leverage primary residency to obtain more favorable long term financing and support a long term rental.

I spoke with a hard money lender today and was told that most commercial hard money lenders that work with flippers would be unable to support financing a personal residence purchase because regulations are different.

Looking for:

We're looking for a hard money lender or private lender that can help us finance a personal residence purchase for a house hack that closes on April 30th. My wife and I were prepared and approved to put 30% down and had a budget set aside for all our repairs. We just need someone to help us get into the deal so we can remove the stove and microwave ourselves and refinance this into a traditional loan. 

Looking for lenders who can loan both for purchase price and rehab with 10-20 percent down for fix and flips in Chester County area. 

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 

@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?

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).

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. 

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!

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.!

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