All Forum Posts by: Blake A. Rivers

@Matthew Spiers depending on your personal qualifications for lending it is possible to get a first position loan and also a closed second. With the private lenders offering max 85%LTC and 70%ARV a closed second would give you up to 100% LTV even if the value is based on AIV and not ARV. That would help with getting the funding needed to keep your journey going. I know a few private lenders that allow a second at closing and one non-qm lender that offers a 2nd in an LLC for investment properties. Reach out if you want a contact for each.

Currently Private money lenders are switching from offering a 30 year fixed to 5, 7 & 10/1 ARMs that are interest only for the fixed period. The current increase in interest rates are causing problems for DSCR loans that have principal payments included in the calculations. To piggyback on what @Kevin M Finley mentioned, the appraisers are required to source the market rent on 2 different sources ( MLS & Public record). This is causing the market rent on 1007's to be dramatically lower then the actual rent collected in the market. One factor is that the increase in rental demand means that most property managers are not listing the rentals and thus are not being used to dictate the market rent. Most lenders have caught on to this situation and are adjusting to a rent range report in place of an appraisers 1007. The high rates that we will see in the next 2 quarters will drive the prices back down so investors who have the capital ready to deploy will scoop up great deals again.

There are some Private money lenders that would do a 80% LTV on a 2-4 unit property but if the multifamily property is above 4 units there is not really an option out there that I know of. Are you looking to hold long term or do a BRRRR style investment?

 There are many private money lenders who are offering 90 day seasoning periods. I know that certain PMLs like LendingOne, FOA & Civic are offering 3 month seasoning periods and in some cases they will lend as soon as it is stabilized. The key here is that most PML offer the ability to cash out the property on a short term loan (1 - 2 years) which can give you the equity asap and allow you to shop for the best long term hold product without a seasoning period coming into effect. 

@Brock Dowis 

There are some private money lenders that are willing to give you 90% of the purchase price but not to exceed the 80% of the as-is value on a bridge loan. If you are looking for 100% financing it would have to be a HML who would offer that option. If the 90% LTV is acceptable I can put you in touch with the shops that do those style loans. Hope this was helpful

@CatherineJavier 

1. I think a private lender is more of what your previous lender is intending to say. A portfolio lender is going to lend on multiple properties and not a single duplex. Most private lenders are also portfolio lenders.

Private lenders like Civic, LendingHome, LendingOne & FOA look at the properties DSCR (rental amount/PITIA) and your current rental holdings to qualify you for a rental loan.

2. Most private lenders are offering rates between 4%- 5.5% on long term rental loans but require ownership of a rental before being able to utilize the loan.

3. When you put a loan in your LLC you can refinance into a conventional loan in your personal name. You may have to pay transfer taxes on each closing. I did not answer 4 as I only know the perspective of the private lending industry and I don't want to give you misinformation.

Hope this helps.

My clients who are traveling nurses use AAA capital in Florida but they can only lend at a time where the nurses have an employment contract. If you have rental properties under your control I would look into private lenders who offer DSCR loans. DSCR loans are underwritten based on the properties cash flow and your investment experience. They do not use DTI or verify your employment.

@Account Closed DSCR loans is what I was referring to as well. We only require 3 months of ownership to refinance based on the new appraised value and we do not need any rental income on the property to move forward. We utilize market rent to figure the DSCR of the property and function based on the market rent assumptions. If you have a W2 job we have the ability to reduce the interest rate 75 basis points. We can consider the property rented if you have a signed contract to lease and first months rent deposit. Most private lenders have similar processes but a 6 month seasoning period is standard for most lenders. This is where you need to ask around for a private money lender that can fit your timeline. Hope this helps @Yacine Rimmo

@Yacine Rimmo The 30 year fixed after 3 months can be done based on a new appraised value but before that time you will only be able to refinance based on your total cost basis. To be qualified for a 90/100 loan as @Account Closed mentioned you would need a good amount experience doing fix and flips to reach that leverage point. If you are looking to embrace the BRRRR method you should look into private money lenders that are offering fix to hold programs as they discount the fees and rates on the refinance.