All Forum Posts by: Max Fisch

If you have the ability to service the debt, meet liquidity and net worth requirements, and the loan amount is $1M or more you should look to an agency product.  Non recourse too.

I agree with others, you can absolutely get the leverage if the property can support it and you are a strong experienced sponsor which it seems you are.

Best of luck!

 Tim,

I wanted to jump in.  Although I will admit the loan officer who Tom first spoke to could have communicated better.  We do not lend on STRs and we routinely refer folks to Mark at Visio.  As recently as a few weeks ago actually.  We, like most others close in 30 days give or take.  And it's always the same deal - title, appraisal, and borrower docs.  

I hate to call people out but the gentleman above refused to provide adequate insurance coverage and insisted on pounding on my processor until she broke down and cried one late afternoon.  When I was put on a group text and received texts at 1030pm when the hang up was not on our team, but the insurance.  In the end the deals closed and yes we sold the loans.

It's impossible to please everyone but we do try to admit when we make a mistake.  Luckily for everyone that loan officer is no longer here.  We are a small shop in the Philly market and we try to stay in our lane.  Thank you 

As it relates to your cash flow, future acquisitions, and your business overall?

Are you aggressive, in-the-middle, or conservative regarding your next 24 months of purchasing new investments or fix/flips??


Thank you all!

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $175,000
Cash invested: $50,000

This was a repeat borrower. He needed to close this and another quickly and we financed the entire project with additional collateral, even closing costs and no appraisal!

What made you interested in investing in this type of deal?

Fairmount Funding is a private lender based outside of Philadelphia.

How did you find this deal and how did you negotiate it?

It was a referral.

How did you finance this deal?

We loaned the borrower the funds.

How did you add value to the deal?

N/A

What was the outcome?

He refinanced and kept is as a VERY NICE rental.

Lessons learned? Challenges?

We love our repeat borrowers :)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

FairmountFunding.net

You will.  We (and most) will allow for you to even quit claim the property to a brqand new entity on the day of closing.  You won't have any issue here.  Hope that helps!!

I agree with the others who posted. Since an LLC is a pass through entity, there should be no harm or benefit in transferring to an LLC. Talk to your tax professional regarding any state or local specific tax implecations.

We buy property in LLCs for the legal liability and to separate assets from each other for the same reason. As for a DSCR loan, most lenders do prefer to loan to an entity. And you do any transfer before getting a loan as that will be an unnecessary hurdle otherwise.

Good luck!

Angelica,

As others have stated here, purchasing your investment real estate in an LLC is quite common and most good DSCR lenders offer this option.

Best of luck!

Thanks for the question!  In short, yes, you can absolutely do what you are looking to do however, the best course of action I outlined below.  Instead of a 'sale' do this:

1.  Find a lender you feel confident with and start the application process.

2. Tell them UPFRONT that you want to deed YOUR property to YOUR entity (llc, etc) AT CLOSING and that the LLC will be 'the borrower'.

3.  The lender should ask for your entity docs and the closing attorney or title company can handle the quit claim (or other) deed.

4.  Close your close.

**We do these all the time and they are extremely straight forward.  Should you have additional questions feel free to reach out to myself or any of my team.  Good luck!!!