All Forum Posts by: Nghi Le

@Lee Ripma Can you expand on why you say you have yet to master the rate-term refinance?  Short of having a hard money or private lender actually giving you 100% financing of your project, I've seen it done pretty well with 2nd liens, cash collaterals / down payment deposits (so that it looks like 100% financing), and cross-collateralizing of another property.  All of these allows you to get back your initial cost (or more if you prefer to structure it that way).

Regarding delayed financing, I've found it to be still undesirable unconventional, but it works for a lot of works. But once you graduate beyond your 10-conventional loan limit, doing it through asset-based lending is a bit more scalable, especially if you're investing in multiple markets. A good delayed purchase program can go up to 80% LTV (even for 2-4 units) and ignores the concept of cost, simply lending based on LTV without capping by what's on the original HUD. i.e. if you happen to buy a $300k property (based on an as-is appraisal) for $200k in cash, ideally you should be able to do a delayed finance and get a loan for $240k three weeks later. Better than a BRRRR, right?

We provide short-term bridge loans to purchase and renovate investment properties. Our loans support fixing and flipping, fixing and renting, buying and holding properties for future construction, and adding ADUs. Our technology enables closing with the speed of a local hard money lender while pricing at a much more affordable debt cost.

• Eligible Properties: 1-4 unit residential and 5-20 unit multifamily (larger unit counts may also be considered)
• Loan Amount: $100,000 to $1,000,000 (may go higher for larger multifamily)
• Interest Rate: 8-12% (terms depend on location, experience, and leverage)
  Loan Fees: Starting at 1-2pts + $1,495 (covers appraisal, processing, and underwriting)
• Loan Term: 12-month standard, but can range between 6-24 months
  
• Closing Speed: 5-10 business days; experienced investors can close without an appraisal
  
• Loan to Value: Up to 85% of purchase price and 100% of rehab, up to 75% ARV
• Liquidity Required: Down payment + closing + 30% of rehab budget + 6 months of payments
• Minimum FICO: 660 (based on a soft credit pull)
• Draw Process:  Rehab draws are reimbursed within 2-3 business days (requires a virtual inspection and lien release)
• Experience:  We count completed flips and BRRRRs within the last 3 years as part of your experience; we lend to new investors too!

We currently lend in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Maine, Missouri, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, and Washington. We can lend in other states if you are doing a lot of volume there. Rural properties are not eligible.

We also provide 30-year  rental loans based on property cashflow. Click here for more details on our short-term bridge and long-term rental products.

To get started, please complete a 5-minute submission at certainlending.com.

Certain Lending provides 30-year loans to entities on 1-4 unit rentals. These loans are based on property cash flow, eliminating the difficulty of underwriting borrower income that is part of any bank loan (i.e. no tax returns, pay stubs, DTI issues, etc). There are no seasoning requirements to refinance, and fees are reduced when you borrow bridge money from us to acquire the property.

• Loan Amount: $100,000 to $750,000 (can be larger for portfolios); minimum property value of $135,000
• Loan Fees: 1.00-1.50pts + $1,495 (covers appraisal, processing, and underwriting)
• Interest Rate: Starting at 5%; average rate is around 5.875%.  Rate buy-downs are available; get lower rates by paying more points upfront.
• Closing Speed: 3 weeks
  
• Minimum FICO: 680
  Loan Term: 30-year fixed rate OR 10-yr interest-only hybrid ARM
• Loan to Value: Up to 80% for purchase or delayed finance; up to 75% for refinances (including cash-out)
• Debt Coverage: Minimum 1.20 DSCR. The DSCR calculation is Rent / PITIA monthly payments, where rent is the lower of actual leased rent and market rents. For I/O ARM loans, ITIA payment is used (which allows you to qualify for higher loan amounts).
• Borrowers: Legal US entities, including LLCs, LPs, corporations, and trusts. Foreign nationals allowed.
• Prepayment Penalty: Standard prepay is 3-year stepdown (3-2-1). Reduced and no prepayment penalty options are also available.
• Lease Requirements: At least 12 months to a standard residential tenant; SFR purchases can be unleased.
• Payments: Monthly payments are collected by ACH. Taxes and insurance are escrowed.

We currently lend in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Maine, Missouri, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, and Washington. We can lend in other states if you have a large portfolio that needs funding. Rural properties are not eligible.

We also provide short-term hard money loans to acquire and renovate the BRRRR.  Click here for more details on our short-term bridge and long-term rental products.

To get started, please complete a 5-minute submission at certainlending.com.

@Tina Chau I am not a mortgage broker.  However, I know of some national mortgage brokers; feel free to PM me and I can send contact info.

@Melissa Harris Look forward to working together! Feel free to reach out if you need POF to submit with your offers.

I'd recommend mortgage brokers over big banks and over loan officers who work for a single lender. They usually tend to perform better (and faster) when it comes to investment properties since most investors would want minimal overlays. Feel free to direct message me for recommendations; BP doesn't allow recommendations/referrals to be posted on the forums.

It's possible to get 80% LTV on a purchase of a 4-plex, assuming it's stabilized and cashflowing well, through an asset-based rental loan for LLCs. But rates are going to be in the 6's instead of what you're used to with a conventional loan. Underwriting would be much easier and faster though.

Certain Lending provides 30-year loans to entities on 1-4 unit rentals. These loans are based on property cash flow, eliminating the difficulty of underwriting borrower income that is part of any bank loan (i.e. no tax returns, pay stubs, DTI issues, etc). There are no seasoning requirements to refinance, and fees are reduced when you borrow bridge money from us to acquire the property.

• Loan Amount: $100,000 to $750,000 (can be larger for portfolios); minimum property value of $135,000
• Loan Fees: 1.00-1.50pts + $1,495 (covers appraisal, processing, and underwriting)
• Interest Rate: Starting at 5%; average rate is around 6.00%
• Closing Speed: 3 weeks
  
• Minimum FICO: 680
  Loan Term: 30-year fixed rate OR 10-yr interest-only hybrid ARM
• Loan to Value: Up to 80% for purchase or delayed finance; up to 75% for refinances (including cash-out)
• Debt Coverage: Minimum 1.20 DSCR. The DSCR calculation is Rent / PITIA monthly payments, where rent is the lower of actual leased rent and market rents. For I/O ARM loans, ITIA payment is used (which allows you to qualify for higher loan amounts).
• Minimum FICO: 680
• Borrowers: Legal US entities, including LLCs, LPs, corporations, and trusts.  Foreign nationals allowed.
• Prepayment Penalty: Standard prepay is 3-year stepdown (3-2-1). Reduced and no prepayment penalty options are also available.
• Lease Requirements: Requires leases of at least 12 months to a standard residential tenant; SFR purchases can be unleased.
• Buy-downs: Rate buy-downs are available; get lower rates by paying more points upfront.
• Payments:  Monthly payments are collected by ACH. Taxes and insurance are escrowed.

We currently lend in Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Maine, Missouri, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, and Washington. We can lend in other states if you have a portfolio that needs funding. Rural properties are not eligible.

We also provide short-term hard money loans to acquire and renovate the BRRRR.

To get started, please complete a 5-minute submission at certainlending.com.

I always tell people to work backwards on their BRRRRs to make sure they can refinance out of it (before they try to get the upfront financing).  This is even more important in the commercial financing space (since this is a 6-unit) since they typically care more about your net worth and experience than the conventional world.  If you have a partner going on title with you that qualifies for the loan, that would make your life easier for these first few deals.  The numbers you posted seems like a good deal.

Buying this with hard money makes sense. Expect having to put at least 20-25% down payment. I know someone local that can help with the hard money on 5+ units, and also be able to pull money out of the other property in 2nd position. But the amount of equity isn't as important as the LTV. Need to know how much it's worth (and the current outstanding balance) in order to tell you how much you can actually pull out of that house. i.e. if it's a $1M property and there's a $850k loan on it, it's going to be almost impossible for you to pull money out of it at 85% LTV.

Meet. Mingle. Grow.

How? Join our virtual meetup! This one will be focused on networking with new and seasoned investors, both in small and large groups.

Hosted by Nghi Le and Leka Devatha, who was recently on the BP Podcast #390.

Please register for the Zoom event here:
https://us02web.zoom.us/meeting/register/tZAlfumqqDIiEtcHMYQTfbV4KAW358t-Si28

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https://www.meetup.com/RealEstateAtWork

@Lavar Harden We can fund delayed financing, and you don't need to put your rehab costs on the HUD.

For those that don't know, the term "delayed purchase" or "delayed financing" comes from the conventional world, and it's used to describe a transaction where you buy a property in cash and then do a cash-out refinance within 6 months. However, the conventional world still treats it as a cash-out, which means that it will cost a little more than a standard rate-term refinance, and your LTV will be 5% lower; the only difference is that you don't need to wait 6 months of seasoning to do a cash-out.

We don't lower our LTVs for delayed purchase transactions (but we do for the traditional cash-out), and we don't increase the rate like we would normally do for a cash-out transaction. We also won't look at what you bought it for and simply do the loan based on the appraised value. For comparison, a conventional loan would normally limit you to 100% of the purchase price (although there are tricks to get around this, such as by putting the rehab costs on the HUD).

For example, I'm doing a loan right now for someone who just purchased a house in cash in FL for $160k. The property is worth $190k, so we're doing a loan at 75% of that ($142,500) two weeks after he closes on the purchase. There were multiple offers on the property, but he was able to negotiate a lower price since he was closing in cash. If we had financed his purchase, he would have had to put 25% down. But since he is doing a delayed finance, he'd essentially be all in for about 10-11% down.