All Forum Posts by: Luther Epperhart

I will be soon finishing up two builds on STRentals, under my LLC, in the Smokey mountains I used a hard money loan for. The appraised value after the build will be about double what I will owe the hard money lender. I want to cash-out refi with a DSCR loan. Conventional will not work.
I need to cash-out 75% LTV to have $ for future projects and furniture. My two issues are,

will a DSCR Cash-Out Refi lender take the projected LTR rate or can we do comps for the STR rate? The LTR rate is much too low, but I am in Gatlinburg, so it's a common thing to build assuming STR.

also, will the lender need any seasoning period? I need to get the money as quickly as possible to furnish the rentals and don't want to loose any time as I already have land picked out for the next projects.  

Answers/suggestions or recommendations to DSCR lenders/brokers than can help me are greatly appreciated.

 Yes, I have heard of them, but it seems no one does them much anymore.  Possibly not, no income, but Stated income might work as well. 

Or there were bank statements mortgages that were still being done, as I know of, about 5 years ago.  

I've heard them been called NIVA or SIVA loans for short. 

Also, I can go the DSCR Refi route, but don't want to refi the whole property if possible, just want a little equity back while maintaining the original loan.

 Yes, I have heard of them, but it seems no one does them much anymore.  Possibly not, no income, but Stated income might work as well. 

Or there were bank statements mortgages that were still being done, as I know of, about 5 years ago.  

I've heard them been called NIVA or SIVA loans for short. 

 Does anyone know a no or low income Home Equity Loan lender?  Is there no such thing any more?  I don't want to refi. as I only need 50K from my equity and don't want to give up the great rate I got 18 months ago.  I don't have great income on paper as I sink all my income back into the business.  Any creative ideas such as a bank statement or P&L statement equity loan would be welcome as well.  

Great credit, but, on paper, not great income.  Have $170K+ in equity, but need $50K out. Any ideas are appreciated. 

I was hoping someone who can recommend a builder for cabins, custom homes in Gatlinburg/Pigeon Forge?  I know everyone is backed up right now, but just any company that does great work, especially if you have worked with them in the past.  It would be greatly appreciated. 

Mark,

    Just checking in if you found anyone?  I am in the area, and in the same boat. 

Ivan,

   If you find someone, please pass along the knowledge.  I'm in the area, and in the same boat. 

@Ken - Yes I totally get you. I am not doing a partnership on my personal home which became an STR. I understand a lot of people are not into partnerships and I can completely understand why. In my retail businesses, it's only me. Too many moving parts for someone else to screw up.

For someone already in the area it might not be the best idea, but for someone that already has too much on their plate, or simply is low on cash because they are putting 3 kids through college, another $500-$1000 in their pocket every month, for doing nearly nothing is worth it


@Matt - Pleasure to meet you. Yes, I was also against partnerships like Ken, but to be honest, don't like to miss out on an opportunity.  If a deal can be made with 2 people and not with 1, and the terms of business are straight-forward, and in a air-tight contract, I don't see why not. Would love to connect with you some time soon and maybe we can chat. 

I gotcha.  Well, I am fairly confident that, if purchased at the right price, STRs will make money in this area.  So yes, you are right.  A lot are overpriced as a lot of people think an outdated 1BR is worth 275K.  I am looking for those scared off by COVID-19, or just done with STRs in general or looking to get out for any number of reasons. 

I think a lot of these slightly older cabins can be renovated, marketed in the right way, and still make a good amount of cash. It would be a lot of work in the first 6 months for sure, but that is what I enjoy doing. 

@Michael and Collin - I might have spoken a bit too soon.  All of last year I was looking for a cabin or chalet and could only find one's in the 220K and up range.  This year, there has been a good handful that are listed below that or could be had below that with some negotiating. Prices might be stagnant, but there is a bit more inventory at lower price points.  I will edit my original post.