All Forum Posts by: Mark Munson

I would price out elsewhere and if you find a lower rate, I would ask the new lender what their rate lock policy is, such as when do they lock it, for how long, and what is needed to get the lock. I preach to everyone to avoid lenders that float your rate until the appraisal is back, it opens the door for a bait and switch. Furthermore, some lenders have rate lock protection from their secondary market buyer, which means the buyer has to legally honor the rate. That is a rarity unless you are working with a major lender. On your settlement statement, does the lender read Fixated Funding or is their another LLC's name?

Hi @Michelle Simoni

I would use the Lenders tab on BiggerPockets and reach out to a few different lenders to compare. If you are looking to fix and flip, just make sure you look for a 12 month term, non-dutch interest on the rehab funds (this means you do not pay interest on the rehab money until you use it), no prepayment penalty, and avoid any lenders that escrow your payments at closing. Best of luck and feel free to reach out if you need any advice!

Hi @Vinny Muli

As others have mentioned, you can do a cash-out refinance using a DSCR loans and get up to 75-80% Loan to Value. You'll be paying off your current debt as well, so just make sure the change in the interest rate is worth it. It is much harder to find a 2nd lien lender on an investment property and, even if you do, they are going to have maximums on the collective loan to value between both liens. I would use the Lender tab here on BP to call around and find a lender or broker you may want to work with and compare loan structures and pricing.

Hi @Jamison Shaw

I highly suggest using the Find a Lender tool on BP and talking with a number of lenders to run the numbers for you. Everyone likes the idea of infinite money through the BRRRR strategy, but the reality is that is harder to achieve in a high-interest rate market. You have to buying deeply discounted properties or building in significant value through the renovations to allow you to tap into the equity enough to get your capital back. In general, you will only be able to access about 75% (maybe 80%) of the After Repair Value when you go to refinance into the long-term debt. So that means you need your all in costs, prior to the refinance, to be about 60-65% of the ARV, ideally. That would allow you to get your capital back and/or cover any refinancing costs. Feel free to connect if you need help walking through the scenario.

Hi @Casi Rice

The most effective Agents and Loan Officers are ones that are investors themselves, highly communicative, and are a valuable resource hub. The vast majority of investors don't even know how to create a buy box; yet they want to make a business out of investing. If you want to make a business repeatable, scalable, less risky, and more profitable; you need to know what you are buying and selling or buying and renting. The more you can help investors mitigate risk, confirm their underwriting, and/or illuminate potential gains or pitfalls; the more successful you'll be. Remember that their success is your success, so be their accountability partner through being highly versed in the real estate investing arena yourself. You need to develop yourself before you can help others develop into what they want to become. 

Hi @Dennis Gallagher

We operate a lending firm and a wholesale company; as well as being investors. If you want to connect, feel free to do so, happy to help. We are based in the SE as well. 

Yes, you can use a DSCR loan if the property is vacant. The appraiser will do a 1007 to determine the market rent and the lender will use that figure to calculate the Debt Service Coverage Ratio. If you are comfortable renting it, then I would avoid the extension and start the refinance process before your maturity date. There are options our there that have no seasoning period of ownership for cash our refinances and others that are 3 months. If you have decent credit (north of 680), you should be able to get 75% loan to value, assuming the DSCR is met (usually a 1 to 1 measurement between the PITI and the Gross Monthly Rental Amount). I would use the Find a Lender tab on here to reach out to a few lenders and compare.

Hi @Ian Stedman

I would leverage that capital against a hard money loan or DSCR loan to buy a property. For a fix and flip or fix to rent you would likely only need a 10-15% down payment + closing costs/financing costs. If buying a rental using a DSCR loan, the down payment would be 20% + closing costs.financing costs.

This is correct advice. Your EMD would not be released to the seller, it would be released to the wholesaler and their EMD to the seller (assuming they had one) would be released to the seller. The fact that they are saying it would be released to the seller is, more than likely, a lie.

Hi @Maurizio Nardi

You can utilize a website like InvestorLift to connect with wholesalers. I am in Central FL as well, I can give you some recommendations of reputable wholesalers. Feel free to reach out.