All Forum Posts by: Matt D.

I’ve noticed some of the flip lenders starting to get a bit paranoid. 3 weeks ago they were doing everything they could to make a deal. Lendinghome as an example has raised their rates, Fico score requirements, and the Loan to Cost is less favorable. I believe the banks are still confident but the hard money/flip money is being very cautious. However, some of the deals I am working on are in Vegas which now has one of the highest unemployment rates in the country. Is anyone out there seeing the same thing?

@David Hulit

Do you know anyone that can help me submit. ?

Hello

I am wondering who out there might know of any lenders that do small balance multi family cash out loans. It is a 10 unit building that is worth about 1 mil and i am hoping to do between 60 and 75 % LTV which would include about $200k cash out. It is is in the Las Vegas area. I realize the rate might jump a little bit but even so, since overall rates are so low this still is an avenue I would like to pursue. Is there this type of capital out there for this type of thing?

In a perfect world, I would love to have financing sail through quickly. Payment size is more important than points. I mean I would rather pay points and have a lower payment than the opposite. Would I be dealing with private money, a small bank or? 725 Fico.

@Eric C.

Does the equity source have a lot of capital for deals in the future? This could be the start of a profitable relationship and a 50-50 split for him putting up the Capital is very reasonable.

Cross collateralization can turn into a house of cards. Another words, if one of them defaults they all default. However getting rid of a personal guarantee is very attractive. I don’t know of any lenders that will do this that are conventional which is not to say they are not out there if you have a relationship.

Hard Money will probably be your best case scenario. Anybody lending money on those types of terms will have in mind that they need to take the property in the event of default. If you’re talking about keeping a very small portion of your portfolio crossed then I don’t think it matters as much.

There are many out there. You will need some sort of bridge loan until you stabilize the property and then roll it into some longer term loan.

Forum Mates

I currently own a small portfolio of rental homes in the Vegas area. Ihave a situation in which tenants, that are younger and in the military and have really beat up my home badly with liquor bottles, to a ripped off door, to what I believe is drug paraphernalia etc etc  We recently took control of the property and will be contacting their commanding officer and if we have these drugs tested and they are what we think they are, then I believe we will have some real issues on our hand.  They are going to owe at least $15k -$25k is my guess because the broken lease, damages, etc  Is a lawsuit the only option?    Thank you in advance for any input  

Tough to find many deals that have palatable caprates in this segment.  Using more leverage and not having all the outside equity can be nice but finding loans allowing good leverage I believe is challenging. I’m not seeing much more than 70 percent loan to value.   

What sort of FICO’s are acceptable in some of the shorter 6-month take out loans.  Is there any soft money for these types?  I have a few loans hitting the one year mark of seasoning and wondering what’s out there. 

It will not be cheap but i am sure there are plenty of parties that would look at this sort of deal.