All Forum Posts by: Raj Khadilkar

@Matt "Roar" Gardner Thank you. Appreciate the info. How long have you been using it? Do you feel like it has enhanced the productivity of your assistants to a magnitude that's worth the cost?

The developers/promoters are touting it as a highly automated deal finding solution that's good for those who have a full-time W-2... Based on your experience, would you agree with that claim?

@Matt "Roar" Gardner, do you want to share your experience with the Autoblaster? Thanks heaps

0 Votes

Great topic!!. I second most of the quotes here especially buying in C area. Obtaining a refi / cash out for a foreign national is a herculean task. It is not only time consuming but frustrating too. Kind of docs the underwriters look for is never ending. We are talking about DSCR loans here with 1.2 ratio. Just like conventional it took me 3 mnths (much better than 8 months I spent during the COVID time) to get my refi sorted. Not sure if this is temperory due to tight funds and FATCA etc but it has been a nightmere for sure!!

1 Vote

Quote from @Mike Mosee:

Hi Orhi

Talk to Mid South Home Rentals (division of Enterprise Realty, Arlington,Tn). We've used them quite successfully for over 12 years now & I trust their work. 901-451-5201

I'm a trust but verify guy so I have picture inspection reports done every four months, cost $75 to help me remotely see what's going on

Best,

Mike

I second that Orhi. Mid South Rental - Enterpris Realty - Arlington are the one I am with for last 5+ years and they are awesome!!

2 Votes

Memphis, Tennessee

Quote from @AJ Exner:

Quote from @Raj Khadilkar:

Thanks to BP community. Bunch of knowledge out there which we could lean on espcially from overseas. Would apprciate if some of the lending gurus / specialists could guide me on my below scenario

Overseas investor (NZ citizen resding in NZ). BRRRR is my model. I am in the process of cash - out refi' ing 4 of my SFR's in TN. All of them are under one LLC and currently are financed with local Hard money lender - total ARV is about 480K with DSCR about 1.2 - individually. Was pushing for 75% LTV on this refi but eventually had to accept 65% as lenders needed guarantors (who are US residents) with 21% stake in my LLC (infact someone asked me 81%.....lol) to lend anything more than 65%.

Spent about 4 motnhs to find a lender who could lend 65%. Went well with Refi till we hit another block for "cash at closing". Lender is asking for a cash at closing (cash reserves as some lenders calls it) to the extent of 70 - 80K in USA banks (which is about 20% of the mortgage loan amount). Understand 6 months of PITI which in this case comes to about 15K at about 9% interest. They also say that each property needs to be considered individual mortgage - meaning high Origination and processing costs. Few questions

- Firstly why it should be treated as individual SFR's and cant be done as portfolio?

- Does LTV should be that low without any guarantor ? dont mind another point up on the interest rate, it will still will qualify 1.15/1.1 DCSR

- Cash at closing requirment (80K) is extremely high, are their any new rules for overseas investors?

- I have few other investments in other countries - could the cash at closing needs to be in USA? Cant show 80K but 20K in other countries bank accounts is no good?

- If I add Guarantor with 21%, what advantages I may get? Also how does affect US residents credit score? Dont want to block their investment plans!!

- Will my NZ credit score valid in USA?

- Lastly if I get my ITIN help anyways (understand that it helps for FIRPTA purpose) - better LTV, Better interest points, Cash at closing etc?

Many thanks in advance..

Hello Raj,

It feels like these questions were mostly answered, but I would draw particular emphasis on your Guarantor idea. That is one of the big advantages to having and owning properties in an LLC, you can add some flexibility that can help strengthen your deal and provide better leverage.

If you think about it from a lender's perspective, there might be flight risk in never hearing from the individual again, especially if they do not live there. However, with another member of the entity who lives in the US, has citizenship there, and provides a point of contact for the lender to reach out to in case there is an issue, it would encourage them to help maximize leverage on cash out refinances (75-80% LTV).

I help a few of my clients do this, so it is definitely possible if you know how to do it on the front end.

Thanks AJ. Will DM you.

0 Votes

Quote from @Derek Brickley:

Hey Raj! Love scenarios like this. For foreign nationals looking for DSCR in the US, there are a ton of options as every lender and investor will be different.

- Traditionally a DSCR loan is done individually, and doing a portfolio loan might not be doable. If you are looking for a portfolio loan, you may want to reach out to a few brokers who specialize working with foreign nationals and see how they can help.

- If you have an LLC, you most likely have a registered agent in the US and that is what we would look at. Again varies lender by lender.

- In some cases, the cash reserves can be taken from the cash-out proceeds. Different investors would have different requirements and what they would allow.

Feel free to reach out if there is anything else we might be able to help with!

Thnaks Derek, Will send you a connect request

0 Votes

Quote from @Jacob Sherman:

Hey Raj ! So for foreign national there is usually a 12 month reserve requirement but cashout from the properties at the table can be used as reserves . I can do in your individual name or an LLC . The LLC the guarantor has to be majority owner of the LLC . I would love to work on these loan scenarios with you . When is a good time for us to connect and discuss ?

Thanks Jecob. Pinged you..

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Quote from @Adam Bartling:

@Raj Khadilkar Non USA Citizens always expect that there is a higher liquidity requirement for the loan.

Here are some rental loans basics as we lend in 40 states.

20% Down payment (non Citizens expect 25-30% down payment)

3 months mortgage payment PITI in reserves

Credit Score FICO 660 min. No credit for Foreign investors, Okay but must qualify on equity.

What I am questioning, is they are asking for reserves but you are doing a cash out refi, why not just pay the fees out of the equity you are receiving?

Portfolio loans: we need to know more about the properties to see if they can be rolled into 1 loan.

Not sure why it took you 4 months, this sounds like a standard loan. More than happy to take a look at your situation.

Thanks Adam, DMed you..

0 Votes

Thanks to BP community. Bunch of knowledge out there which we could lean on espcially from overseas. Would apprciate if some of the lending gurus / specialists could guide me on my below scenario

- Firstly why it should be treated as individual SFR's and cant be done as portfolio?

- Does LTV should be that low without any guarantor ? dont mind another point up on the interest rate, it will still will qualify 1.15/1.1 DCSR

- Cash at closing requirment (80K) is extremely high, are their any new rules for overseas investors?

- I have few other investments in other countries - could the cash at closing needs to be in USA? Cant show 80K but 20K in other countries bank accounts is no good?

- If I add Guarantor with 21%, what advantages I may get? Also how does affect US residents credit score? Dont want to block their investment plans!!

- Will my NZ credit score valid in USA?

- Lastly if I get my ITIN help anyways (understand that it helps for FIRPTA purpose) - better LTV, Better interest points, Cash at closing etc?

Many thanks in advance..

0 Votes

Quote from @Keenan Patton:

Quote from @Mike Mosee:

Hi Keenan

We've used Mid South Home Rentals of ARLINGTON,Tn , division of Enterprise Realtors for over 12 years successfully. You can call me at 503-888-6927 to talk . I'm located west coast like you, near Medford,Or. Available most days. If I don't answer (thinking you're trying to buy one of my places) leave a message & I'll call back shortly

Mike

Thank you Mike, I'll definitely call you tomorrow.

My number is 5303152482. I get a lot of spam calls and property calls so I totally get it. Looking forward to talking.

Hey Keenan,

I second Mike. Mid South guys in Arlington I have worked with for last 5 years or so and they are awesome!! Would be happy to share my exp with them too. Cheers Raj

1 Vote

Memphis, Tennessee

Quote from @Dustin Lauer:

Quote from @V.G Jason:

Quote from @Dustin Lauer:

Hi Jeff. Currently DSCR rates are often pricing lower than Conventional rates on rental properties. Investors are still getting rates in the upper 7s and low 8s. The trade off is definitely prepayment penalties, and higher down-payments (if purchasing).

Where are you seeing this? I know you are a lender. But how is this possible?

I'm getting low 7s as primary, low 8s for DSCR(assuming 1:1). IF it's .75 it'd be mid 8s.

I haven't had any single families cash flow well enough for 75% LTV recently. Pricing is much better > 1.1 DSCR, which is barely any positive cash flow. Often closing at 65% or less these days. Recent loans: 60% LTV at 7.5% with 3 year PPP (1.1 DSCR), 50% LTV at 7.625% with 3 year PPP (1.1 DSCR), 65% LTV at 8.125% with 3 year PPP (1.0 DSCR), 60% LTV at 8.625% interest only for 10 years with 3 year PPP (0.8 DSCR), and 65% LTV at 8.250% interest only for 10 years with 3 year PPP at 1.0 DSCR

Hi Dustine,
I am looking for DSCR - Refi on current my portfolio of 4 SFR's in Memphis. Is your program good for Aliens (Foreign Citizen not residing in USA)? No SSN, no Credit scores but have EIN. I am looking for 70% LTV, 3 years PPP, 8.75 - 9% range, up to 1.5% origination - Please PM me.

0 Votes

All Forum Posts by: Raj Khadilkar

Raj Khadilkar has started 2 posts and replied 20 times.

Post: AstroBlaster - anybody use this?

Post: What's something nobody tells you about Real Estate Investing, but should?

Post: Memphis Property Manager Recommendations

Post: DSCR - Cash at closing / Cash reserves

Post: DSCR - Cash at closing / Cash reserves

Post: DSCR - Cash at closing / Cash reserves

Post: DSCR - Cash at closing / Cash reserves

Post: DSCR - Cash at closing / Cash reserves

Post: From Cali to Memphis were gonna make it happen.

Post: Are High-Interest Rates Stopping You?