All Forum Posts by: Kevin Woodard

The math will always work. Whether the variables are right will depend on the investor. 

You need your purchase price coupled with required construction to be a percent of ARV (typically 60%-75%).

The total project cost as a ratio of the ARV will depend on the market, your experience, and your investment strategy.

Like Tyler said you can go DSCR and likely take a hit on leverage, or go Taylor's route and reach out to a local bank.

DSCR loans are fairly straight forward. 75% in Illinois with good credit and DSCR, shouldn't be too complicated.

I’ll send over a message to connect. 

I know this thread has received it's fair share of great answers. As for REO, the answer like most real estate investing questions is, ‘it depends.'

For example we are able to do deals without previous real estate owned, but we just added that feature within the last 3 weeks. 

I’d be more than happy to talk to you on your specific deals as it does vary from state to state.

@Matteo Girlando

@Yvonne Gallegos

Quote from @Jonathan Dempsey:

@Tyler Solomon

I just had 2 houses over appraise for a client (I'm an STR focused agent), only to find out the DSCR lender they were using is having trouble 1 week before closing because they are using market LTR rents vs. an Airdna projection (which I poor assumed the DSCR lender would use from past experience with these loans).

Nightmare! Hoping we can salvage these deals because they are 13 cap rates

This was definitely the case earlier in the year. There are lenders that can still underwrite a property specifically as a short term rental. 

I have seen both projections and STR as comps on the 1007 to qualify income. 

Quote from @Stephen Strauss:

I've read that every government backed loan is assumable. I have been looking into this hoping to do it myself but don't have any first had experience yet. 

That’s right VA,FHA and USDA. The buyer will have to qualify for the purchase and the lender agree to the sale. 

Quote from @Lior Nissim:

Hey!! I'm signing my first BRRR property this week, and have a financial question:

If you get the deal with hard money loan, how do you refinance it after the rehab? I don’t think the hard money loans company refinance… 

I got the hard money loan under my company’s name, but my company wouldn’t qualify for regular mortgage. Do I need to sell the house to myself? 

Thanks!! 

First, congrats! 

If you have any questions I'd be happy walk you through what many others have mentioned. DSCR loans are great products for these very scenarios. What type of lease are you looking to put in place post-rehab? 

It’s been a couple weeks, and hopefully this is resolved. If not I’d be happy to take a look at your deal for you.

Quote from @George Duchatelier:

i have a follow up question regarding DSCR loans. Can you get a DSCR loan that includes rehab costs?

Good question, the vast majority (99.99%) of DSCR loans do not include a construction holdback. 

In most instances it's more advantageous to use an I/O loan that doesn't have a prepayment penalty to do your rehab.

I’d be happy to talk more on the topic. 

If you’re ever in the Hudson Valley come on by to Limoncello’s.

I’d be happy to announce your event at local meetups it’s a small world.