All Forum Posts by: Logan Lambert

Hello BP!

I have recently come across two separate deals, where the owner does not live in the house, but will not sell because the properties have sentimental value to them. Has anyone had experience with this and/or have any ideas on how to create a win-win situation? Thanks!

AZ

I feel like this is a trick question.......

Aaaaahhhh..... The owner/sellers........ Ya know, the place wholesalers are getting them from....... 

Hey everyone!

I'm not new to purchasing properties, but this will only be the second property I've ever purchased and the first in this new area. My first property was a Single-Family home right before the pandemic in late 2018. 

I've gone through the process of shopping out a loan for the property and it was decided that I'd go with a loan originator who initially told me the interest rate would be anywhere from 5.5-6%. Now I'm being told that the interest rate is more realistically going to be 7.125-7.6%, which makes the purchase significantly less desirable.

So my question: Is 7.125% market rate or is this something I should be looking into?

Necessary Stats:

Credit Score: 740+
Loan Type/Amount: Conventional/$320K
Projected Income: $3100 (including me paying myself rent)
Down Payment: 5%

Let me know if there is extra info needed and thanks ahead of time for any advice that is offered!

Purchased a property that was listed by sellers agent on Zillow realtor.com etc as triplex with rents listed etc. my realtor verified the rents, as it has been rented as a triplex for 25+ years, worked with both my realtor and listing agent through the sale. Spent a few months and about 40k rehab and was just told by the city it's not a triplex, or even a duplex but a SFH. Located in Kansas.
anyone been through this and/or suggestions on what to do? 

Do you feel continuously assaulted by the Columbus Mafia on BiggerPockets?

If any newbie utters the word Columbus, Midwest, or Ohio, the entire brokerage descends upon the forums with post after post. It's absolute madness. I believe this behavior also goes over the DMs.

In the beginning, it was funny. Now, it is spammy. If you read the majority of the replies by the Columbus Mafia, it's only about Columbus or the general area. Some of the responders know more than others, but some are just complete spammers. It's a strategy.

I've been answering questions on BiggerPockets for 10 years and never once asked for business or DM'd for business. People find me because I answer questions, sometimes about the area, most of the time about investing. If we built a spreadsheet of the overall responses from the Mafia and how many were veiled attempts at business, I would bet it is close to 80 percent.

I know I am not the only one annoyed every day, so please post your thoughts here so BiggerPockets can review them.

I do know someone who bought multiple properties with a former Mafia member and the properties are still performing so this isn't a referenda on how good the agents are. I have not personally worked with them. What this is about is the constant and unabashed spam sham on every post that mentions anything even close to Ohio. Like maybe just round robin it, bros. Watching you all post after each other is embarrassing.

Hi Deborah, I'd be happy to answer some of your questions on DSCR loans as I've been originating them for a while.

1. The approval process is much less intensive than it would be for a conventional loan as the DSCR loan is low doc and will primarily be based off the cash flow of the property and your FICO Score. Most Lenders will want to see that the property does cash flow well (typically over a 1 and 1.2+ for 5+unit properties), is the property itself a match for that lender's guidelines (rural? min property requirements, state they lend),does the borrower have enough liquidity to close on the loan (liquid assets, not DTI and no need for tax returns).

2. Most common you will see the following for MAX LTV; 80% on purchase, 80% on rate/term refis, 75% on cash-out refis. Some lenders can go up to 85% on purchases and 80% on cash-outs but most tend to stay with the initial LTV's. The rates are constantly changing with the market. the lowest I've seen was a 3.49% in the last 2021 to early 2022 (right before everything launched up in rate), but as of 10/1/2024 the lows that I'm seeing are at 5% for an SFR with rate buydown/ reduced LTV etc.

3. Lenders may have subsets of rules or guidelines for areas that have very high default rates such as increased min property values or experience being required, but other than LTV's going down for a while by 5% in late 2022 I haven't seen anything crazy. I'd say over the last 9 months that lenders have gotten a bit looser with DSCR requirements (scaled with the borrower's FICO).One challenge though may be vacancy on refi's. Some lenders will cut your LTV if you want to refi, but do not have tenants in place yet. Regarding reserves keep in mind that your taxes and insurance get escrowed so if they are due in 2 months then your reserves at close will be much higher than if you'd just paid them.

4. I've been more on the origination side here so I can't speak too much personally as I try to get some investments under my belt, but from working with investors over the years it is a key part for them to pull additional liquidity for new projects they pursue as well as a great tool to keep their properties profitable over a long-term period. I'd highly recommend looking more into the BRRRR section on BP to learn a bit more about how they use DSCR loans to scale.

Hi fellow investors,

I've been hearing a lot about DSCR (Debt Service Coverage Ratio) loans lately, especially in the context of long-term buy-and-hold investments. For those of you who've used DSCR loans, I'd love to hear your experiences! Here are a few specific questions I'm curious about:

1. How does the approval process differ from traditional loans? Was it easier to qualify based on the property’s cash flow?
2. What kind of terms have you been able to secure? Are interest rates and loan-to-value (LTV) ratios competitive compared to conventional financing?
3. Have you noticed any challenges or downsides? For example, are lenders stricter about DSCR ratios, or do they require higher reserves?
4. How has using DSCR loans impacted your overall cash flow and ability to scale? Did they allow you to grow your portfolio faster than traditional financing would?

I'm thinking about recommending DSCR loans to some of my clients who are buy-and-hold investors, but I want to make sure I've got the full picture. Would love to hear your insights, tips, or any lender recommendations you've had success with!

Looking forward to learning more from your experiences!