All Forum Posts by: Miranda Holland

Quote from @Sam Chan:

I purchased the investment property in May and was told that I have to wait 6 payments before I can refinance. Why do I have to wait if I am only doing a rate and term refinancing.

Hi Sam,
What you're encountering is called a "seasoning period." Most lenders have a 6-month seasoning period before they allow a refinance, even for a rate and term. However, not all lenders require this. There are lenders out there with no seasoning requirements, so you could potentially refinance sooner.

Quote from @Samantha Zanotelli:

Is there anybody offering 10% down on Jumbo Loans in Southern California..

I was told that this isn't possible right now and that given the current market most people want to see 12 months of reserves. Was curious what others have to provide for information on this and if they have seen 10% down on jumbo loans for a first time home buyer.

 You’re right—commercial lenders are tightening up their guidelines, and it’s becoming harder to find 10% down on jumbo loans, especially with the current market conditions.  I'm sending you a connection request. 

Quote from @Jephte Augustin:

I have a question

I have property I just acquired and renovated with a Fannie Mae loan. I’m looking to cash out refi, but I have to wait 12 months of seasoning before I can do that.

Does that seasoning period apply if I cash out refi into a DSCR loan?

I can see a scenario where I take on the risk of a high interest rate and less flexible terms for 5 years, so I can access my cash sooner if that option is there.

 

Hi Jephte,

The seasoning period can vary depending on the lender. While most private lenders typically have seasoning requirements ranging from 6 months to a year for refinancing, even with a DSCR loan, there are some lenders who don't have any seasoning requirements at all.

It’s definitely worth exploring your options if you’re looking to access your cash sooner. Feel free to reach out if you have any other questions or need more information!

Quote from @Erik Jenkins:

I am in need of 80K to close on property in 30 days, vacant land. Land is in New York. Have good credit, 2 previous lenders who will vouch for me and can buy but trying to avoid tax hit for selling liquid assets. Would prefer longer term loan 60 months or so but can do short term also ie 12-24 months. Thanks

 Hi Erik,

There are several private lending products available that can help with the purchase of vacant land, depending on your situation. Here’s a brief breakdown of a few options:     

Land Loans: These loans are specifically designed for purchasing raw, undeveloped land. They typically require a larger down payment and may have shorter terms, but they can be a good option if your goal is to hold the land for future use or development.

Subdivision Loans: If you plan to divide the land into smaller lots for resale or development, a subdivision loan could be the right choice. These loans cover the costs associated with preparing the land for subdivision, such as grading, infrastructure, and legal fees.

Ground-Up Construction Loans: If you plan to build on the land, a ground-up construction loan might be ideal. These loans typically cover both the cost of the land and the construction. They can offer more flexibility and longer terms, making them suitable for a variety of projects.

The best option will depend on your specific needs and plans for the property. I’d be happy to discuss these options further if you’d like to explore what might work best for you.

If he has a business entity in the United States, his deal should qualify for private money loans. 

Quote from @James S.:

Could someone clarify how a cash out refinance would work after new construction. I own the land with a mortgage (owe about 225k out of 287k) and am living in one of these units. I have about $150k cash on hand as well as I am planning to get a construction loan to cover the remaining cost of a duplex. My question is after the construction is complete, am I able to do a cash out refinance on the whole property to pay off the construction loan in order to build more units? If so does the cash out reset the loan to the original amount or does it increase it to include the value of the new unit (i.e. original loan was 300k and after cash out it becomes 550k?) thank you. 

 

Hi James,

After completing your new construction, you can indeed do a cash-out refinance on the whole property if there's enough equity in the ARV. This refinance would potentially allow you to pay off the construction loan and potentially access additional funds to build more units.

The new loan amount after the cash-out refinance will be based on the current appraised value of the entire property, including the new construction. For example, if your original loan was $287k, and the new appraised value of the property is significantly higher due to the completed duplex, the new loan could increase to reflect that higher value, allowing you to access more capital. 

Keep in mind that the exact amount you can cash out will depend on the lender's guidelines and the loan-to-value (LTV) ratio they are willing to offer. Make sure you work with a lender who understands cash-out refinancing to get the best terms.

Feel free to reach out if you have any more questions or need further clarification. 

Quote from @James S.:

i was hoping to get advice on the best way to fund the next part of my real estate journey. I house hacked a property that has 9.4 acres, and has a duplex and single family home on the property. I current get $1,000/month for the single and based off local market expect to get $1,500/month for the other part of duplex (mortgage is $2,080/month after putting 20% down). I am working with the city for approval and have a cost estimate from someone I know of 250k to build another duplex on the property and eventually multiple duplex. With that in mind I have about $140k in cash at the moment and was hoping for advice on the best way to finance the rest/recommendations on who to fund the remaining amount through. I plan to cash out and refinance after completing the unit, and using the remaining funds to construct additional units. Is this a good plan? And advice is appreciated.

Hi James,
If you no longer reside on the property, it might qualify for a ground-up construction private loan for non- owner occupied properties. 
These loans can give you money for the purchase, or credit for the purchase when you already own the property.  And they also provide up to 100% of construction costs.

Quote from @Jesse Imes:

Hi!

Currently looking for a lender that will do a portfolio commercial refinance on a group of STRs. They are all 2 units or single family homes. Income is amazing. Looking for income based approach to get the best value.

Let me know!

Thanks!

Jesse

 Hi Jesse,

Your STR portfolio sounds impressive!

Have you faced any specific challenges in finding funding for this deal? There are strategies and lenders that can help overcome those hurdles.

I sent you a connection request 

Quote from @Devin Peterson:

Does anyone have a good lender/contact for a commercially zoned tourism home?

Purchased for 180k over 1.5 years ago

Reno 280,000k

ARV 520K

Experience through the roof

FICO 700+

The trick here is the prop card/zoning - does anyone have a product for this? Please DM me if so.

I’ve encountered similar situations with unique zoning challenges. For a commercially zoned tourism home, it might be a bit tricky, but definitely not impossible. Lenders who understand and specialize in such properties can be more flexible with their criteria.

One approach is to ensure you provide comprehensive documentation on the property's potential and zoning specifics. Highlighting your extensive experience and strong FICO score will also be beneficial.

Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

I’ve encountered similar situations where comps were further away, and it can indeed be challenging to find lenders who are comfortable with that. When working with rural properties, some lenders might still consider the deal if the comps are strong, even if they're a bit farther away.

Sometimes it's beneficial to gather as much data as possible about the area, including any local developments or attractions that might support the ARV.

If you have a local lender or a smaller bank that understands the area, they might be more flexible with rural properties.