All Forum Posts by: Ken Vesely

 Jordan from what I have seen they have stopped their retail lending arm as of last week and are only focusing on wholesale channels. 

@Faiz Kanash i am a direct lender and have no issue working with 1st time investors. Reach out lets talk! 

@Jim Ziccarelli we have closed DSCR loans in as little as 10 days (borrowers that paid a rush fee for the appraisal) we can turn them in 3 business days. Typical turn time to close (regular appraisal) is about 20 days. Anyone telling you 30-45 days id be weary. No reason to take as long as a bank to close a rental loan on this side of the playing table.

Dustin - while bank loans are good, there not always best for investors. Yes you might save a little on the rate, but hard money/soft money DSCR programs are meant to take up the slack in the lending market that banks just don't understand.

The reason so many investors don't even consider banks and go right to dscr programs is very simple - most investors don't show enough income to carry all their rentals on their taxes, why not close a loan in 15-20 days (vs 30-60 w a bank) and not have to worry about your DTI, taxes, w2, 1099's etc.

In the long run the little bump in rates vs a bank is offset by piece of mind not having to deal with banks, who's job when they lend is to only lend on what they can sell out the door the day after closing -- 

Reid - I can do 90 day seasoning using the ARV if you have a mortgage on the property to be paid off. Doesn't sound like you have a mortgage on the property however?

Lawrence, 

If your looking for a loan on your flips, I would recommend using Carl's initial 70% formula 

ARV x 70% less your rehab budget = your max offer price

I know that cuts a lot of deals out, but I was taught early in my career (yes I'm a lender) but i also buy houses, that if your not ashamed by your offer , you offered too much. Remember in this market there is a ton of competition, but chasing deals doesn't usually work out well. You make your money when you buy, not when you sell! 

Thats a question only you can answer, are you looking for capital appreciation or cash flow? I know both are ideal, but in some urban areas your not going to get the same appreciation as you would get in large cities/suburbs. For example here in NJ, the last 24 months, due to the Covid restrictions you had in NYC, you saw a HUGE inflow of people moving from the city down here to the shore. Houses I own personally down here are up about 45% on avg the last 24 months. While I bought them for cash flow (summer airbnb rents at the beach) prices have far exceeded what I thought I was buying into 5 years ago. However you have areas like Essex county in NJ where you saw about a 12% increase the last 2 years, but there are large pockets in Essex that investors buy for cash flow (specifically section 8 housing)

The atty suggested 20k but you didnt get quotes for the remediation? I would have passed on the deal unless the seller covered the full remediation cost (either in a seller credit or lowering the price of the sale). At this point you either pay the remediation or sell for a loss and chalk it up to experience. 

Mike - you need to assume as a 1st time rehabber your putting somewhere in the 20-25% of the purchase price down + closing costs , title fees, appraisal and you need cash in reserves to make payments. Depending on the market your looking to purchase in, I'd say 1 maybe 2 deals to start until you build your bankroll. 

Bryce, as a hard money lender, i see this all the time - there is a 30-50k profit (not sure why a lender like myself wouldnt fund this) if thats the actual profit -- however do you have all expenses factored in? 

property taxes

insurance 

realtor fee to sell 

legal fees representing you as the seller

transfer tax when you sell? 

filing fees