All Forum Posts by: Logan Drew

I am a direct lender lending to real estate investors and primary homeowners and can provide full doc, conforming rates to those who qualify.  Turn times are less than 2 weeks for conforming purchases and refinances.  Business-use/ private/ hard money also available for more difficult or no/ low documentation scenarios.

If you are searching for private money or hard money in California, please give me a call or email.  I can source rates as low as 7.49% with no documentation required.

Thanks,

Hi BiggerPockets members!  I am available for any mortgage/ real estate financing consulting and review of scenarios on your investment projects.  Let me know if I can help you reach your real estate investment goals through the use of financing.

This could work with some commercial lenders/ private investors assuming the LTV on the loan to the LLC is low (and you could see a request for full recourse/ personal guaranty by the patner(s) of the LLC as well). With cash-flow from notes payable from the partners, retail lease(s), and office lease(s), you should not have a problem getting at least medium-term (3-5 year) financing for this deal. I have seen it as low as 7.49-7.875 based on just LTV alone.

HELOC's and lines of credit are coming back as we see more liquidity in the financial markets. I just spoke to a business development rep for a depository bank out here in CA who just rolled out 'no doc helocs' to 50% LTV at prime + 1% (4.25% currently). That's no income docs?!? Here we go again, right? I agree that a regional/ local bank or credit union is a great place to start for the best rate on these types of things... and with a banking relationship/ assets on file, they can sometimes be surprisingly liberal. If you have income documentation to boot, there should be more options than you can shake a stick at.

As for the terms... 3.875% for a cash-out on a non-warrantable condo is pretty good... push them to let you use the existing appraisal or ask them to cover the next one if that comes up.

Regardless of whether the lender is a broker or lender, the occupancy ratio cannot be known by the loan officer until the condo cert is ordered. This usually happens during processing, but after the appraisal is ordered. Did you pay for the condo/ HOA lender cert as well? Although it appears ridiculous, this can happen with condo financing and I have seen it a million times. I usually forewarn my clients and will contact their HOA to try to track down the occupancy and hoa delinquency ratios before I spend any of the clients' money on an appraisal. That said, I hope the lender is allowing you to use the appraisal you already paid for on the next option they presented. Having a recent appraisal released to another investor/ lender is not difficult and you should stand your ground if they ask you to pay for another appraisal.

Sorry, just saw the second property comment... if you own a primary residence that is an SFR, you'll find it very difficult or impossible to buy a duplex using an FHA loan unless you can prove the property will be owner occupied by some factor including location, job reloocation, or something of that nature. This can be very difficult when going from 100% occupancy in an SFR to 50% occupancy as you would have in a duplex (you'll only occupy half the property). FHA is very strict on rules pertaining to 'moving up' in size/ room count of a home or occupancy ratio.

You can buy an SFR with 3% down and no monthly PMI using conventional, non-govt lending if you are interested in paying a slightly higher interest rate due to lender paid mortgage insurance (seen as a slight adjustment to the cost of the loan that can be covered in a slightly higher interest rate or paid out of pocket as a fee). My opinion is that if you are buying a single-family, stay away from FHA unless you have bad credit. If looking to buy a duplex with minimal down, FHA is probably your best bet as the conforming route will cap you at a lower LTV. Of course, this assumes owner occupancy, which I believe is assumed for 1 year for any of the above.

Hi Linda:

It would make the most sense to locate the property(ies) that you want to purchase in your first round of acquisitions prior to funding the refinance on your primary residence if you are worried about carrying the interest with no returns.  As you know it is not an exact science though and shopping for investment properties with your cash already in the bank can open some doors that would otherwise not present themselves to you.  That said, there are private lending products out there that can alllow you to shop for properties with a lot less cash in hand than you might think you need.  Do you plan to buy and hold the new investment properties or rehab/ resell them right away?  Do you plan to utilize any investor/ private money financing (debt) to go with your $600,000 to amplify your returns and increase your ability to buy?

There are second mortgage (heloc) products available that could save you quite a bit on interest carry costs if that is a major concern.  That said, with the correct planning and budgeting you can plan for your costs in a way that the cost of the money is something that is not scary or concerning.  Please let me know if you would like some consulting on this topic.

Thanks,

Logan Drew