All Forum Posts by: Nate Herndon

Hi @Jane Gold, feel free to shoot me an email and I can connect you with a client of mine who uses the BRRRR method and also does work for other investors in B-ham.

Hey @Casey Graham, I've got a property data tape that I can email your way if you want to send a message my way. It is mostly for the purpose of qualifying for DSCR loans and calculating your DSCR per property, but with a little modification in Excel you could add those additional data points you're looking for.

For sure, would be happy to connect for a call. We broker for that program so I would be your best point of contact on obtaining a loan summary, next steps, etc. Will send you a quick DM.

Hey Jace, the program that I utilize most frequently for my clients includes the closing costs in the LTC calculation, so that helps a little - and they will finance 85% of the project.

• 85% LTC
• Closing costs financed
• Interest on drawn funds only
• Interest deferred until loan exit
• 18-month term

Hopefully that gives you a better idea of what's out there.

Hi @Paul Scammacca - a DSCR loan will not take your personal debt-to-income ratio into consideration. DSCR loans are based on a Debt Service Coverage Ratio, which is calculated as the property rental income (appraised market rents on a purchase) divided by the property debt (monthly principal, interest, tax, insurance). As long as the 'ratio' is a 1.00 or greater, aka breaking even or positively cash-flowing, you can get that loan.

These are 30-year fixed loans for investment properties and do not require your personal income, taxes, or debts be taken into consideration.

Here's a good BP article explaining how you can use these:

https://www.biggerpockets.com/blog/questions-and-answers-abo...

Hey @Eric Fernandez - honestly, these are pretty decent terms given the scenario! I've got a sub-$100k program that I use often and my clients would get something like what is shown below.

Rate isn't wildly important at these loan amounts, though. When you're talking about 0.50% at a $60k loan, that's about a $20.00 per month difference. 

Hey Michael, there's quite a few programs that I utilize for clients of mine who only desire a 10% down payment. Some are first-time investors, others are very experienced. 10% down payment is available for both ends of the spectrum depending on the deal numbers.

Shoot me a quick DM or email and I'd be happy to lay out the options available to you.

@Troy Smith might be worth having a local agent take a look at your comps with a CMA and then weigh out whether your 'spring market' will bring better sales comps, or if the sales from the past 6 months will get you the value that you are looking for.

Here's a quick go-by for seasoning requirements for much of the investment property lending world. There is a 'no seasoning' program that I utilize for the fastest BRRRR clients, but your rate will be slightly better (0.25-0.375%) if you hold out for closing on a refinance after 90 days.

• Delayed Purchase, no Rehab completed
• 0-6 Months
• Up to 80% of purchase price
  
  
• Cash-Out Refinance, no Rehab completed
• 6+ Months
• Up to 75% of appraised value
  
  
• Cash-out refi, Rehab completed
• 0-3 Months (no seasoning requirement)
• 75% of appraised value
• Good rates
  
  
• Cash-out refi, Rehab completed
• 3-6 Months
• 75% of appraised value
• Best rates

 You bet - just sent a quick DM your way.

Good morning, Joel - 

What you are describing is a very common practice on the private lending side of the financing industry. Whether it be a fix-and-flip loan or a 30-year fixed DSCR loan, nearly all of the clients that I work with will opt for closing in the name of an LLC.

As you may know, closing in the name of an LLC prevents the loan from reporting on your personal credit as a tradeline (unless you default on the loan). I have investor clients with 40-50 loans that they have completed with me and not a one is reporting as a mortgage on their credit. Additionally, they've avoided 40-50 hard credit inquiries populating on their credit as a result of the soft credit inquiry that we utilize for DSCR loans.

If DSCR loans are a new thing to you, I would recommend checking out some articles here on Bigger Pockets or giving me a call to learn more. Always happy to discuss the ins and outs. DSCR loans underwrite to the income of the property, and do not require your personal income, taxes, debt-to-income ratio, etc.

Of the 1,100+ loans that our team closed last year, I want to say that only 1% to 2% of those were closed in a borrower's personal name.So, it is pretty irregular for us to process an investment property loan under a personal name.

Clients usually opt for closing in their personal name if they simply do not have an LLC established yet.