All Forum Posts by: Randall Re II

As a real estate investor seeking a Debt Service Coverage Ratio (DSCR) loan, you should reach out to multiple commercial lenders such as banks, credit unions, and alternative lenders. It's recommended to compare the rates and terms offered by different lenders to find the best deal for your specific needs and financial situation. You may also consider working with a commercial mortgage broker who can assist you in finding the best lender for your DSCR loan and negotiating the best rates on your behalf.

I'm going through this process now of researching for one for when I start my search in March for my first Airbnb as I don't have a traditional w-2. I know it's hard to find money when starting out. However, I'm in the same boat. Finding someone with money but no time is the key as I'm working on that myself.

Just thought I'd share this recent featured article on BiggerPockets all about DSCR loans that should be helpful!

https://www.biggerpockets.com/...

Thank you.

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Quote from @Jay Hurst:

Quote from @Luis Sanchez Rodriguez:

Hey BP!

I don't know about y'all, but I am having a hard time getting approved for a HELOC/HELOAN for my investment property.

The #1 reason why I am getting denied is because banking institutions (the ones I've tried) are only doing these types of loans for primary residences.

Have you had any success on getting loans on your investment property(ties) without refinancing?

I'm trying to get my current rate (2.7%).

@Luis Sanchez Rodriguez Yes, there are products available. We do plenty of them in FL.

Jay, I'm currently in search for HELOC loans in Florida. I sent you a PM>.

0 Votes

Destin, Florida

Quote from @Jon Kelly:

Good advice @Randall Re II!

We can't do airbnb's but if you have fix and flip / ground up or any DSCR residential property I'd love to discuss. We are a direct lender and can set you up with a line of credit with us

Jon, Currently I'm just inquiring about DSCR's. I'm mainly looking for HELOC's right now that are non variable, not required to take full amount out and uner 8% interest rates.

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Quote from @Brian Banilivy:

Randall - where is the Air BNB? I'm a commercial mortgage broker.

I'm in the research phase right now for the correct market. I'm currently looking for a HELOC though that would be used on my rental in Florida.

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Quote from @John Morgan:

Quote from @Randall Re II:

Quote from @John Morgan:

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

John, would you be against sharing the scope of work you had done? It's seperated from the house so I'll have to add AC, plumbing, some electrical, and I'm looking for a minimilist price tag/ look to it as its small and doubt tons of kitchen cabinets and such will matter.

I had a small full bathroom (stand up shower) and a couple walls added to make a laundry room and walk in closet. The bedroom is small, but big enough. They had to connect the sewer line from the outside of the house, under the driveway to join the main sewer line in the front yard. Minimal electric work and a window. Nothing fancy. Cost 8k which was labor and materials. Took them a week to do. You’ll need some kind of heating and cooling. I’ve got a detached garage at another rental house that has window units and space heaters. But you can add a mini split maybe.

Thanks John. I'm hoping to get the price down as I'm told the AC and Sewer lines will be very expensive but who knows. I'm new at this all and still figuring this out. Working on getting a HELOC to do this, also so I can move some walls in my primary as the house isn't to functional.

2 Votes

Cape Coral, Florida

@Joe Funari Sounds like you have been at this for a long time. Would you be against sharing advice on something. I'm overseas and it's hard to find someone to work with/ find that has a lack of time, but has money. Any advice on how to go about that?

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6 Votes

Quote from @Joe Funari:

Quote from @Randall Re II:

@Joe Funari late reply, sorry.

I saw 12 on average??? Sounds like they aren't hungry. I find it hard to find good realtors in many places as the negotiation is so important. If you ever read or heard of Chris Voss, never split the difference book, he explains how to properly negotiate and my negotiations have improved immensely because of it. Even basic sales are listening to the customer. They are always saying something, it's whether or not your paying attention. I've gotten great deals by simply showing interest in what my client is saying and they pick me because they feel better working with me. I didn't know that about the attrition rate, it's odd to invest in something to only use it for so many years.

Randall, LOL, no not very hungry. I personally feel many contemporaries treat it as a hobby. But I need to buy more rentals. So always looking for new business. I haven't read Chris Voss. But will read it. Thanks for the suggestion.

I've read and listened to the audio over half a dozen times. Check out the blackswan, it's his business. Much of his stuff is free, and one of the niche markets he goes after is Real Estate agents. Check it out.

1 Vote

Quote from @Melissa Tommarello:

I am in the home stretch of converting the detached garage (600 sq ft) on my property to a 1/1 unit. I am living in the main part of until and based on my estimates, I should be able to cover my mortgage once it's up and running.

I have put a lot of blood, sweat and tears into the project and wouldn't say it was easy. As this was my first investment property and had limited capital, it definitely was more of a challenge. Due to that, I did a lot myself from submitted the plans to my local building department to putting up drywall. I believe it will definitely be worth all the hard work in the end and plan to get my property reappraised. I do have the say I would not have been able to do this if I contracted all the work out though.

I'm overseas so this will almost all need to be contracted out. I'm going to convert it to a 2/1, and my PM says he can rent it all day for $1500 which I believe as well from my research.

0 Votes

Cape Coral, Florida

Quote from @John Morgan:

@Randall Re II

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Cape Coral, Florida

All Forum Posts by: Randall Re II

Randall Re II has started 38 posts and replied 114 times.

Post: DSCR loans and what to do

Post: HELOC/HELOAN for Investment Property

Post: DSCR loans and what to do

Post: DSCR loans and what to do

Post: Is it worth it to convert Garage into a rental unit

Post: 3 tips for finding the perfect agent to take your investments to the next leve

Post: DSCR loans and what to do

Post: 3 tips for finding the perfect agent to take your investments to the next leve

Post: Is it worth it to convert Garage into a rental unit

Post: Is it worth it to convert Garage into a rental unit