All Forum Posts by: Kerry Boyle

Curious as to whether Anchor is still lending on short-term loans. I don't believe Renovo is currently lending on the short-term rehab loans. There are definitely lenders out there. If you look really hard...

We are still lending.

Short-term loans: Up to 75% ARV. We require that 100% of rehab is funded. We require 15 monthly payments built into the loan (with municipalities closed, we are preventing you from asking for extensions). We don't allow you to default on payments, as they are all built-into the loan. Call me for specific quote requests - 680+ credit only.

30 year rental loans: Up to 70% LTV. We require 700+ credit and guarantor must own 5 rental properties.

Call me - it takes 5 minutes and its free to give quotes.

There are still a number of HML companies lending. Most that are still lending have peeled their guidelines back to a place they can feel comfortable.

If you have the cash to bring into the deal, you will find some lender willing to leverage you. 

@Kerry Baird

Wow, what a list! I applaud you for the time it took to make that! 

Would have loved to make the list - maybe some day :).

@Ryan Weimer

You may be right. I'm not from CA. I just imagine that IF there are potentially 20 buyers looking at a property and 10 of them are cash 10 of them were using lenders and 9 of those lenders aren't lending anymore. Now you only have 11. Technically less demand :).

Demand is down in the DC area - sellers aren't doing "Review and pick best offer in 5 days" on most houses. 

I like @Maurice Smith's idea.

I have heard countless stories about hard money lenders doing the same thing. If their funding sources stop funding, and they don't have equity to fund or a place to sell - then they simply can't fund. 

Don't forget, that in today's market, that 4-plex is going to be in less demand than before. The seller really doesn't want to back out and sit on the market when few people are buying. 

You can also see if you can use the same appraisal with some lenders, if the deal works out. Sometimes it is just a phone call away.

As a lender, right now, my biggest concern on fast closings is background check vendors. Are they going to be able to get to the local municipalities that don't have online records to clear a background for a borrower? There are many components of lending that are also being effected that others haven't thought about.

We are lending as well... interesting time in the lending marketplace. Many lenders have paused 30 year loans, I know a number of the funding sources that buy 30y loans have stopped lending.The lenders who haven't adjusted anything - be aware, they probably will this week. Almost everyone is retreating to a space they are very comfortable in. 

I know it has been a buyers market for borrowers for a long time... right now it seems that has switched, as lenders with money are tough to find.

Cash position vs monthly obligations (typically debt is the biggest concern). If your cash-position doesn't cover your monthly obligations, you are over-leveraged. 

Straight to the point:

• As low as 5.025% DSCR loans on NOO residential properties. We lend to LLC and Inc only.
• Up to 75% LTV if the property has DSCR greater than 1.25% (Rent divided by PITIA) 660+ credit only.
• Lower LTVs available at 600-659 credit scores.

What do we require:

• Application
• Entity documents (recorded articles, operating agreement/bylaws, certificate of good standing or state-issued equivalent, w9, potential resolutions if required.
• Must have 12+ months of mortgage history on credit report or a lender's VOM.
• Mortgage Payoff Statement (If you have a lien)
• Photo ID
• Insurance with coverage amount greater than loan amount and with our mortgagee clause.
• Beneficial Ownership Disclosure (basically anti-money laundering form)
• Borrower Certification of Business Purpose (what are you using the money for?)
• Appraisal (loan amounts under $400,000 may be drive-by only appraisals)
• First 3 payments paid with cash-out proceeds. ACH set-up for future months.
• More, if our underwriters require it.

Why do this?

We understand today’s market. We are comfortable lending in it and understand that not everyone is looking for more leverage. We know the difficulties with backed-up appraisers. Appraisers, tenants, and homeowners don’t want to break safe social distancing. We allow exterior-only appraisals on loan amounts under $400,000 to keep your tenants (and appraisers) safe from contact, confusion, and concern. We are here to put cash back into your business so you can “weather the storm”.

How to move forward?

Shoot me an email with the “Request a Quote.pdf” completed. I’ll work with you to give you the best terms we can provide. I don’t need to pull your credit, and I don’t need you to pay a dime for this.

If the terms presented are agreeable, please complete the “Application.pdf” and email it to me. I’ll pull your credit. If credit matches what you told me, terms stay the same and we move into processing. Processing will order appraisal, title, background checks and coordinate with your homeowner’s insurance agent to review any necessary updates. Processing will charge your credit card $289 of the $1450 underwriting fee (the remaining $1161 will be due at closing)-details on page 4 of the application. Loans are typically completed in about 30 days, but pending a fast appraisal, they can be done much faster.

Example?

SFR in PA: As-is Value: $340,000, Rental income leased at $2550 monthly. Taxes: $4670 annually. HOI: $800 annually. Credit: 740+. Existing mortgage payoff: $190,000.

Result:

Cash-out LTV at 75% with 2.5 lender points.

5.45% 3/1 ARM OR 5.825% Fixed Rate.

Buydown allowed down to 5.025% at a 2 pts per -1% rate ratio.

Cash-out amount is about $45,000. Total PITI $1,895-$1,956/month and the first 3 months are already paid.

@Account Closed

Hello Dean,

Regarding your sentence, "when your dealing with a borrower with experience...its not wise to control the Construction" - could this concern have been resolved by allowing you to complete your construction in any order?

Regarding your sentence, "I dont know how you make a borrower pay 12 months in payments upfront when they can clearly show they have completed 8-9 flip in the last 12 months...scary!" - Was your original, estimated ARV higher than the appraised ARV? 

Regarding your sentence, "I'll take ownership in allowing Nick to tell me "WE ADVANCE FUNDS AT THE CLOSING"......IT NEVER HAPPENED!" - I've reached out to Nick to find your deal so I can review your HUD. If your original, estimated ARV was higher than the appraised ARV, it may have reduced the amount of first draw you were quoted before we received the appraisal. It may have even reduced it to zero. Typically, if we are in a situation where the loan amount exceeds 75% of the ARV, the borrower has to bring additional money into the deal. 

Thank you for your future responses.