All Forum Posts by: Mike Manchester

Most DSCR lenders are usually going to want to see more equity contributed directly from the borrower, however there are some shorter term options that might work for you. I'd need to know more details about the property and the business plan to make any worthwhile recommendation. If you'd like to direct message me I'd be happy to jump on a quick call and go over the details.

How long ago was your rehab completed? I know of a private equity fund that might be able to help you with a second but the amount you spent on the rehab and how long ago you did so will impact the overall loan amount and structure. Happy to talk more if you'd like. 

Your mentor is right, but within limits. Lenders are almost universal in their requirement that a borrower has "skin in the game". So while a seller credit can reduce your overall cash out of pocket on a deal, lender guidelines typically won't allow for it to cover 100 percent of your down payment. There are some smaller home-office type lenders that will, but that is usually very expensive capital. 

I would do a cash-out refi with zero or low PPP. Yes you are giving up a rate that you probably aren't going to see again anytime soon, but as long as you aren't locked into an extensive penalty period you can always refi again if rates plummet to the point that it makes sense to do so. 

I think your best bet would be finding a private equity fund, but that would typically mean the LOC would be for business purposes only. If you plan to eventually use the funds for additional investing there are a few places who offer what you are looking for. If you want the line for personal reasons then you are probably stuck with traditional lenders and you are correct, their guidelines have gotten much tighter and will probably stay that way for the near future.