All Forum Posts by: Noah Wright

Quote from @Jessica Cook:

okay , thank you for your advice .I currently have the property under contract so as of right now  I should try my best to make it as good of a time as ever .

 We can go low depending on your unique credit profile. I just did a 10.5% + 2pts for a first time flipper with only 10% down. Keep looking, and let me know if I can help :)

Why?

Start with your primary, rent out any spare bedrooms "house hack"

Use that to practice upgrades, kitchen, bathroom, curb appeal... etc

Now you have experience as a landlord and flipper, use that to buy a distressed property

Add 40% equity to the property through home makeover, refinance into a low cost mortgage

Now you are cashflowing a healthy margin on a second property, use that to build equity over time, cashout later and buy your duplex/quad.

If it's going to take you 10 years to save up a down payment for a small apartment building, yeah it makes more sense to start growing your portfolio with cheap SFR flips instead.

Every market is different, every borrower is different, every property is different, it would be ill-advised to recommend anything without recognizing the individual's nuanced goals and objectives with their next acquisition.

Quote from @Ryan Dunn:

Hi,

I have two BRRRR loans with Fixated Funding, both starting and closing on the same day. One loan was locked at 6.9%, the other at 7.1%. However, I just received the closing docs, and the rate on the 6.9% loan has been increased to 7.8%. I wasn't notified about this change until I saw it myself.

When I asked why, they said the home inspection found some issues that were fixed and re-inspected, but I’m confused why this would result in a rate increase. Also, Fixated moved my closing date a few times, but luckily I didn’t have another deal at risk.

Does this sound typical? I’m mainly concerned about the rate change happening without prior notice, especially since both loans started and are closing on the same day.

I’m scheduled to sign tomorrow and close on Friday. Any advice would be appreciated!

Thanks!

 I would suggest finding a lender that treats your transaction with the same care and attention with which they would treat their own. All very best

Interesting. Could take a crack at it, we'd need to see an appraisal around $125k but that could happen... give me a call let's talk

Quote from @Zachary Finnegan:

Hi Guys, 

Looking for a lender that might be a good fit for a blanket loan on our portfolio in Pennsylvania.  Any advice or recommendation would be greatly appreciated. Thanks!

We have 5 properties totaling 16 units with a total rent roll of 11,875/month and occupancy is at 15/16. Four of them are multi family 2-4 units and 1 is a mixed used commercial store front with 3 apartments upstairs. Currently working with a lender who will lend on the multi fams but not the mixed use property. Our ultimate goal is to use one lender to underwrite all of them under one loan, or individual loans if need be. The total value that can be supported with our appraisals are 621k and we have 170k in debt. Two partners in the LLC with 700 plus credit and strong cash reserves.

Property	Appraisal	Debt
208 Congress 3 Units	135000	74000
86 Congress 4 Units	138000
137 South 3 Units	100000
9 Tibbitts 2 Units	102000
117 Main 4 units	146000	96000
Total	621000	170000	Equity	451000

Hi Zach, 

I'm sure a lot of these lenders would like to complete this bundle up, but generally speaking we see higher costs associated with them, and it makes it a lot more difficult to cash-out and un-wind upon any restructuring of your portfolio. Is there a strong reason you have for bundling into a portfolio loan? I wouldn't recommend it, for most cases.

All best

Adorable little fortresses! Great acquisitions, they look fantastic

If you're thinking about closing a property under an LLC, there are a lot of advantages that make it worth considering. First and foremost, it protects your personal assets. An LLC creates a legal separation between you and the property, so if something goes wrong—like a lawsuit or debts related to the property—your personal savings, home, and other assets are shielded. Only the LLC’s assets are at risk.

Another big plus is privacy. In many states, an LLC can keep your name off public records, which is great if you prefer to keep your ownership private or avoid being directly associated with the property.

Having an LLC also makes you look more professional. It shows tenants, lenders, and partners that you're serious about your business, which can build trust and credibility. If you’re working with a partner, an LLC makes things easier, too. You can clearly outline who owns what and how decisions will be made, which avoids headaches down the road.

If you're planning for the future, an LLC can help with estate planning. It’s a lot simpler to transfer ownership of an LLC than it is to change the property deed. This can make it easier to pass things down to your heirs or bring in new partners.

An LLC is also great if you're thinking about scaling up and owning more properties. You can set up separate LLCs for each property to keep risks compartmentalized. That way, if something happens with one property, the others are safe. It's also easier to attract investors because they know their risks are limited to what they put into the LLC.

Finally, managing the property becomes simpler under an LLC. You can open a business bank account, sign contracts, and handle expenses under the company's name, keeping everything clean and organized. It also makes negotiating things like insurance rates easier because you’re seen as a business, not just an individual.

Of course, there are pros and also cons, like setup costs, filing fees, and more paperwork to keep up with. But for many investors, the benefits far outweigh the marginal cost differences. An LLC is a smart move for individuals looking to protect themselves, grow their business in a professional light, and operate as a corporation.

Our business-purpose rental loans currently start at 6.25%+, which is lower than conventional or fha - fyi. It sounds like folks in this thread got bad deals and are blaming commercial loans instead of the lender who overcharged them. I'd encourage you to weigh all of your options before making final decisions. All with best regards

There's a nexus of factors tied to the LLC lending question worth noting.

Typically we use a specific type of private business-purpose note that enables LLC lending.

Other benefits of this note include: No Income Verification, No Credit Reporting, LLC Liability and Privacy protection, Unlimited Number of Loans, Far Less Documentation,... many obvious and non-obvious reasons savvy investors run this route.

These notes are also competitive with FHA/VA/Conventional interest rates; however a 15-20% minimum down payment is required.

Happy to help you cover the bases. Very best regards --

Quote from @Shawn Callan:

Am I missing something? I'm struggling to see how I can afford to get into a second house with my current DTI. I own a house that I am living in with a VA loan and want to buy a different home and move into that as my primary residence and rent out my first home. But when I quickly run the numbers it doesn't add up. I owe 400K on my current home and would be looking at 450K for a new primary. That's 850K worth of debt. If I could rent my home for $2,500 (I hear lenders could take 75% of that projected income?) plus my monthly W2 income I get $8,675 (2500 X .75 plus 6800). My current monthly mortgage payment plus projected future mortgage payment (2900+2900 = 5800). So I would have debts of $5800 divided by $8,675 gives me a DTI of 67%. I do have money for a down payment, but I fail to see how I could make this work? Is my math wrong or is there another better way to do this? Any thing helps!!

We have private funding without DTI throttles --

Quote from @Marshall Smith:

I have my eye on a 4 plex I'd like to buy, renovate, rent, and hold.

What kind of loans are best for this?

4-Plex details:

-currently occupied

-estimated sale price 265k

-ARV 400k, and 4k/mth in rent

Background on me:

-I have an LLC

-I own 4 single family rentals

-each has around 70k + in equity

-all cash flow well

-credit is 800+ with adequate income.

If yall were me, what loan options are best to buy, rehab, and rent a 4 plex?

Could always buy it on a DSCR loan at like 6.25% and cover the renovation out-of-pocket. Otherwise you're looking at like a 8.99% 12-month bridge loan if you want to fund the construction piece too. LMK