All Forum Posts by: Kerry Boyle

Hey Freddy, 

Really quick note about private/HML. Not all require experience. Most require you to have an entity as you are purchasing an investment as a business endeavor to earn income. Further, it allows the lender to avoid RESPA regulations which would nullify most of the Pros of using a HML.

Creating an entity can be extremely simple (google or BP search) - most HML don't require entity seasoning, so a newly created entity for one specific project can limit your liability and allow you to get a loan with your friendly HML rep you met through BP.

Now whether 28k can get you into and out of a deal is a question based on the numbers of the deal...

Thanks,

Correct, not all hard-money lenders require bank-statements.

Further, John, it may not be considered a cash-out if your loan was X, you put in Y and the total cost was Z to get it to be a rental. If you can verify the funds you used for Y (HUD showing cash-to-close, receipts/invoices from contractors, etc), you may be able to get Y back as "cash-out" if you are at a very healthy LTV.

Well said. Refinance or sell to pay off a HML. Many HML also offer 30 year rental loans, that don't have the same income requirements as banks. Rental loans are based on DSCR, debt-service coverage ratio. It is a fancy way of saying Rental income vs rental expenses. Careful though! Many lenders have different definitions of rental expenses... do you include vacancy, maintenance, utilities etc? Obviously you would want to cash-flow a certain number to be comfortable, the lender likewise wants you to cash-flow a certain number to be comfortable. Note that these loans don't typically include any kind of personal/company income. ONLY the property's income.

Unique terms - please email or DM and we can set up a time to chat today!

At this time - yes we are.

Straight to the point:

Rental loans:

• As low as 5.025% DSCR loans on NOO residential properties. We lend to LLC and Inc only.
• Up to 70% LTV and the property must have DSCR greater than 1.25% (Rent divided by PITIA) 700+ credit only.
• Guarantor must have 5+ rentals owned.

Fix and Flips: 

• Monthly payments are built-in (you don't pay out-of-pocket!)
• Up to 85% LTC, including title, taxes, and insurance. 
• We must fund all the rehab, and we advance rehab draws.
• Call, email, or DM me for free, no credit-check estimates.

 I was thinking about this some more, and I think it makes sense to say that you are over-leveraged the minute that you don't have the cash reserves to cover this exact moment of debt-obligations.

So if you hold 6 months reserves, make no money in 6 months and in month 7 can't pay the bills - you are over-leveraged. 

If you had a short-term loan that builds in all the payments, you couldn't be over-leveraged until you have to pay it off.

Please message me for details.

Going up to 70% LTV on rental loans. Must be 1.25x DSCR. Must own 5 rental properties currently. First 12-months payments must be paid at closing (you may use equity to do so).

Short term loans with rehab- we are still lending. Message me for details.

 Sorry! I was in a conference in Atlanta and I called you back from my cell, it is a 570-number. I will call again today.

To add onto this... these are two completely different loan options (most likely).

Credit Unions are likely to want to see income, assets, and tax returns. Few HMLs require this information. Credit unions MAY not want to lend on properties that aren't habitable - while HMLs make a living on doing precisely that.