All Forum Posts by: Ken Faler

Looking for a bank lender that will refinance w/ less than the typical 12 months seasoning requirement, using the new appraised value. Cincinnati / Dayton Ohio area.

I live not to far from you in Springboro,  I am more the buy-and-hold kind of guy but would be more than happy to grab a beer with you and talk shop. Ken Faler - 9374707987

Traditional Lenders will refi any loan, if you hit their requirements. 12 months / 75% LTV is what you can realistically "rely" on for your refi, with cash out being feasible at that time as well. There are local banks that offer products under the 12 month seasoning rule and to 80% LTV but do not rely on it as an exit strategy. If you are shooting for less than 12 months seasoning keeping good documentation of repairs and cost is good so you can justify the increase in value to appraiser, odds are the list of repairs and cost of repairs will be something either the loan officer or appraiser will ask for. I think B2R Finance is offering 3 months seasoning w/ 75-80% LTV. Park National Bank in Cincinnati will do no seasoning at 75% LTV. Again plan for 12 months and if you get it done sooner kuddos to you. My first deal was a hard money loan and after the points, loan fees, draw fees, closing costs and high rate the real APR was sickening. I switched gears to private mortgage lenders (friends and family network) offered 10% and that has proven extremely beneficial...83 rental properties later. Good luck at the sheriff sale, confirm the outstanding water bill is included as a seller closing cost on the closing statement and buy an Owners Title Policy.

from what I was told liberty rental finance was started up the end of 2015. I'm currently working a refi with them now they're proposing a 30 year fixed rate product for bundled single-family homes. I was quoted 6.75% and that's after 2 point buydown loan-to-value 70%. That's their 30 year fixed product no prepayment penalty. Depending on how this refinance goes I may move a lot of my single-family homes that are sitting on a five year fixed product to liberty rental finance. I agree I was a little surprised to see that ocwen is still around as well must be due to the fact that they're largely a loan servicer but I'm not sure I have not looked into it specifically

try Liberty Rental Finance.

that's tough a good chunk of those assets that are not producing any income. Move the family member into one of the duplexes on a year lease, rent the single-family house out to a market rate tenant on a year lease. Establish a payment history on those leases. Then do a bundled loan on the single-family house and the duplexes. Fix up your primary residence and get a separate owner occupied loan on that. (Likely a much better interest rate and LTV terms). As far as your land is concerned I definitely think it should be separate from everything else (a third loan) but I have no guidance on that no experience there.

yes my would be JV Partner in this scenario has not historically been using borrowed funds. The private mortgage lending he has done with me in the past is something he is doing as an alternative to other investment vehicles. Putting on the equity hat vs the lending hat would be a different change of pace for him and assuming he feels comfortable with the structure and feels his principle investment is safe it may make sense assuming he can achieve similar returns.

Definitely not two mortgages, I am glad we are on the same page, I should have been clearer. Agree that would be fraud! I just think the possibility of an equity partner not having to guarantee the note could work nicely with a possible equity buyout at a later date without any loan issues. The JV Partner of course keeping their share of the dividends/profits until such buyout date like you said. I think it would be OK if both entered the JV arrangement knowing that the one guaranteeing the loan would or could eventually buy the other's equity at a later time. That's where the attorney and the LLC operating agreement comes into play I guess. Also probably a good idea for the attorney to have the loan docs to review as well.

Brent- the entire point of this is to uncover if this product is available, and if it is, you have to admit, it could open the doors to a lot of JV opportunities, for JV partners that are not comfortable guaranteeing debt. Which is my situation, whether it be a fellow real estate investor or my private lender. The question for my attorney would be when drafting the LLC paperwork is this legal to do? If not of course abort mission. No one is deceiving anyone. Ultimately if Liberty is OK without a guarantee from 75% of their borrower then enough said. Since you don't know me, I would like to clarify I am a very honest individual, and when I come up with a creative idea on acquiring an apt building you guys are nice to talk shop with, help me see an angle I am missing. Please don't be so quick to attack my integrity. I am prior military (Air Force) and worked very hard for everything I have.

I do expect to poke a hole in this loan officers product, I do agree with you that likely this would only work if I at 25% was in fact the largest equity investor. I expect anyone with a higher equity position would be forced to guarantee the note as well. Which is the entire reason my mind has been spinning since hearing about this product and the possibilities it proposes. In what realm would it make sense to be this flexible on the guarantee? We are putting 25% down so Liberty has somewhat of an asset cushion, but as Brent would say 25% was not enough protection in 2007.