All Forum Posts by: Nasir El Ameer

@Jaime Villegas

Idk why they told you no but looking at small banks should be ideal for you compared to big banks

@Brian Orr

Your option to phase out and reduce capex will only help the actual expense numbers. As far as phasing the equity out for investors I cant say if that is the right or wrong approach without fully understanding your deal.

@Evan Griffin

No problem

@Martin Lindsay

Why is he pushing back on the appraisal?

Why wouldnt you want an appraisal?

Its your saving grace to see if the deal is worth it?

@Brian Orr

To answer your question those expenses will be included to determine the NOI

@Brian Orr

Speaking from my experience and underwriting these deals the lender will work with a predetermined range of expense ratio starting at 35% on the low end to 45% expense ratio.

Once the appraisal comes back they will look at the market expenses and your actual expenses and take the higher of the two ratios.

Most banks including alternative lenders will preliminary underwrite the deal at 40% until value comes back.

@Jordyn Rodriguez

If you go to bank type commercial lenders then they will base the deal on your LLc and documentation.

You may be able to get individually approved but that will require full doc with tax returns etc.

You can go to an alternative no doc lender. They can do the deal without LLC history or financial statements they will do the deal based on the asset.

Can get 80% LTV with 30 YR fixed. The rate will be higher than the bank but it may be better loan terms.

@Fabiola F.

Im not denying that they are used everyday im just mentioning something from the finance standpoint for future reference.

As it relates to legal I cannot answer those questions I will let someone else answer them

@Evan Griffin

Banks loans for BRRRR are doable if you find a deal that the bank will lend on.

If they wont do the deal then the next step is a bridge loan or hard money loan or cash.

The refinance is the key to the BRRR method.

You need to work with a lender that does not have seasoning requirements.

Banks are out of the question for this because they require you to own the property for at least 12 months before giving you cashout based on the appraised value after rehab.

An alternative lender does not have seasoning can get you 75-80% of the LTV after rehab.

@Fabiola F.

I cant answer the questions as it relates to legal matters but from a financing standpoint land trust are a hassle to work with.

If you keep the property and plan to refinance in the future your likely not going to be able to do the deal because of the structure. Therefore limiting your financing options.

LLC is not an issue to refinance and cashout or get future financing you just can't get a traditional bank loan.