All Forum Posts by: Richard Scholtz

Hello,

I am a Nigerian Prince - offering great financing.....  Just email me your bank routing and account numbers....and do not tell your wife.

Nuff Said.

property that was purchased with cash  -- so there is no loan now .....which means FNMA  will view it as if you never had a loan --so they will price the "new refi"  as a "purchase"   = huge savings on "Delayed Financing"   and no hits on "cash out" 

That is your first choice -- and by far the cheapest 

Delayed financing is a method for getting a mortgage after you've purchased a piece of real estate using cash. Put simply, delayed financing offers a way to purchase a home in which you pay cash upfront, then quickly obtain a cash-out refinance to mortgage the property.


=========================================================================

FNMA and FHLMC Loan level price adjustments = Those fees went into effect December 1st, but the increased cash-out fees don't go live until February 1st, 2023. Fannie Mae and Freddie Mac are also raising loan-level price adjustments (LLPAs) for both types of cash-out transactions come April 1st. So the loans offered by Banks - credit unions are not so cheap for rentals and cash-outs.

All of a sudden DSCR loans do NOT look bad at all since FNMA really raised their risk pricing -- - There are many DSCR lenders - LIMA - RCN - CIVIC - VISIO - OAKTREE - ATHAS who are not the best but you get the idea.

5-year Prepayment penalties are not a must -- the better lenders are 3-2-1 so it may help if you plan to sell/refi earlier. Anyhow the fun part of brokering is putting 11 lenders on a spreadsheet and tracking them as they get more aggressive -- then pull back... 

Hope that helps.

I agree with Marty - If the taxes line up - a Credit Union/bank will take the first lien position to 75%  and give you the cash out - They may consider the property Mixed - Use so not an issue.  

We represent a few small-balance commercial lenders that skip the tax returns and just use the current rent roll (DSCR) to support the loan. They price very similar to the banks -- maybe 50-75 basis points higher. Paperwork-wise - a simple solution.

@ Sherief Elbassuoni Non-Q.M. loans are largely dead for now. I have emails from most residential Hard Money/ Lite Doc Lenders ( 9 in total including Veristone and Mortgage Equities- Wadot and Eastside -Civic -Lima- Velocity) that have all suspended lending for now. 3 of my commercial hard money/ lite doc commercial lenders (multifamily + offices etc ) are also on hold. The few that are left will do 70% LTV not 80% and we shall see if they actually come through. Really Scary as I had applications to refinance a lot of completed rehabs to 30-year Rental Loans. These all have 12-month underlying hard money loans that will come due in a few months and few places to put them now? Smells like 2009 when Blackstone Hedge Fund - was the only game in town.

@Joe Cassandra I will see loans that the banks will now turn down. There will always be lenders. So have many resources.

When things go to hell they will make their rent payments --Visa will go unpaid but no one wants to be homeless

@Kenneth Garrett     Landlords are rich - Like Amazon,  and they get taxed just for foolishly choosing "The Socialist Republic of Seattle"  as a place to do business. No relief for them.

@Kirk R.  Seattle leads the way 

City Council President M. Lorena González wants to extend Seattle’s moratorium on residential evictions until six months after the city’s coronavirus state of emergency ends, for some tenants.

The city already has an emergency order in place that says many residential tenants can’t be evicted for 60 days or until the emergency is over. The order covers all evictions other than those related to tenant actions that imminently threaten the health or safety of others.

González intends to introduce legislation Monday that would allow tenants to use the pandemic as a defense in eviction court. Landlords would be barred from evicting tenants able to prove a connection between their unpaid or late rent and their coronavirus struggles.

Her legislation would apply to tenants with unpaid or late rent due to a coronavirus-related illness; reduction in income; loss of employment; reduction in work hours; business or office closure; need to miss work to care without compensation for an immediate family member or child; or similar circumstance.

@Emily Beatty   And those same tenants will get 6 months Free Rent from you later ---    Welcome to Seattle.

City Council President M. Lorena González wants to extend Seattle’s moratorium on residential evictions until six months after the city’s coronavirus state of emergency ends, for some tenants.

The city already has an emergency order in place that says many residential tenants can’t be evicted for 60 days or until the emergency is over. The order covers all evictions other than those related to tenant actions that imminently threaten the health or safety of others.

González intends to introduce legislation Monday that would allow tenants to use the pandemic as a defense in eviction court. Landlords would be barred from evicting tenants able to prove a connection between their unpaid or late rent and their coronavirus struggles.

Her legislation would apply to tenants with unpaid or late rent due to a coronavirus-related illness; reduction in income; loss of employment; reduction in work hours; business or office closure; need to miss work to care without compensation for an immediate family member or child; or similar circumstance.

@Shawn Melis

I agree with the above - I know of at least (7) Seven of the NON-QM - Institutional lenders that have quit the D.S.C.R loans //No Doc Loans // Professional Investor loans. Had one do that with docs in Escrow :-( Flagstar was the largest bank warehousing those --They quit providing warehouse lines for Non QM lenders - Home Express -TheLender- New Rez- Royal - DeeepHaven - Carrington - Angel Oak etc - That all was securitized and investors have totally redefined risk. Find a lender/investor that has already tightened their LTV's and credit score requirements and you should be good for a few more months and they will adjust. Personally, this is an opportunity as banks tighten up we will see loans that would never have needed us 6 months ago. Reminds me of doing Blackstone deals in 2009 when they were the only Hedge Fund lending on rentals and rental portfolios. Travel Well Richard