All Forum Posts by: Michelle Romano

@Deborah R.

My son has to completely gut the property. He has flood insurance but curious when they will pay and how much. He got a public adjuster but nervous he will rebuild and another hurricane will hit next year.

@Deborah R.

My son has from Hurricane Helene

Hello - My son purchased an investment property - duplex in Madeira Breach, Fl. Had flood damage after Helene- everything had to be taken out to the walls. I am in PA and he does not do rehabs for a living. I am looking for contractor referrals he can trust. The scammers come out when disasters strike and nervous he will get scammed. I have not yet seen the damage but he will need everything. Any recommendations are appreciated, Thank you!

Good question and have similar. As I stated in my post,if it is illegal for lender to charge a Prepayment Penalty in PA why are they quoting the step down PPP?  How can I get around this?

Quote from @Brittany Minocchi:

Yes, very common. The length varies by lender/state, some states (like OH and PA) have rules around prepayment penalties. If you're required (or choose) to buy it out, your rate and/or costs will be higher as a result. Longer penalty = lower rate, shorter penalty = higher rate (usually - not that long ago I had a loan where a 2 year PPP was cheaper than a 3 year) 

Its a little confusing. I have received 2 quote 7% /30 yrs and NO PPP and 2 quotes 6.85%/30 yr with 5/4/3/2/1 PPP? Ideally, I wpuld like the 6.85% without the penalty. Also, I purchased this property in 1996 in my name. The other properties were all in their own LLC. Future properties wil also be purchased with LLC but do not want to change the title for tax purchases per accountant. Suggestions?

Quote from @Luis Astudillo:

Costin, 

A prepayment is an interest-based: The lender charges a specific time period's worth of interest—say, 6 months' worth—if you pay off your loan early. DSCR loan programs have pre-payment options from 0 years to 5 years. With a 0 years option more than likely your interest rate will be higher than it would be for a 5 years pre-payment option. Now, whichever option one chooses the rate is fixed for the next 30 years. The pre-payment option; is my understanding, that the pre-payment option is only executed when the loan is refinanced or the property sold.

 Luis,

That is my understanding as well.  If my total loan amount with closing costs is, let;s say $145K I would not pay off the balance in 0-5 yrs, so I would not have to pay the PPP is that correct?

Hello - I have been reading these posts about DSCR loans and prepayment penalties and have a question. To clarify, it is illegal for the lender to charge the investor a prepayment penalty in PA for $301K and under loan even if the lender is not located in PA or do they both need to be in PA?

I am looking for a DSCR loan for a long term rental I have in PA with small cash out. The existing loan I obtained 6 yrs ago was a DSCR loan with a one year ARM - no prepayment penalty, that is coming due in October. I am getting quoted the 5/4/3/2/1 step down prepayment penalty. I have no intention of selling the property as it has great cash flow. Any lenders here that can assist. Thank you.

Hello - I have been reading posts about DSCR loans and prepayment penalties and have a question. To clarify, it is illegal for the lender to charge the investor a prepayment penalty in PA for $301K loan and undee even if the lender is not located in PA or do they both need to be in PA?

I am looking for a DSCR loan for a long term rental I have in PA with small cash out. The existing loan I obtained 6 yrs ago was a DSCR loan with a one year ARM - no prepayment penalty, that is coming due in October. I am getting quoted the 5/4/3/2/1 step down prepayment penalty. I have no intention of selling the property as it has great cash flow. Any lenders here that can assist. Thank you.

@Alan Grobmeier I’m stumped myself. I just sold a property and I have 40k and need to invest. My experience has been with fix & flips of SF residences as welp as SF rentals. Thinking of just purchasing a small multi family (4-6 units) however I am also learnIng about InvestIng in large multIfamIly propertIes (50 +unIts) but it an be a long turn around time. I could use some insight and expert advice. Thank you!

I would learn more about financing / private money lenders and get a mentor. I learned a little and started on m own but with my own money and now I'm hurting. I was never taught how to get financing or how to make make money from different deals. So much enjoy RE Investing and want to be successful in my dealings.