All Forum Posts by: Rich Manfredi

Anyone do or know of anyone who does cash-out refinance on land in Northeast TN? Looking to tap into some equity on a 120+ acre parcel that is worth over 600k with about 300k currently owed. Thanks! =)

0 Votes

Knoxville, Tennessee

Quote from @Nick Belsky:

@Sean Bramble

There are select few lenders who will allow seconds on STR. I work with a few. As long as the Ratios come out as passing even with the second, there's no reason why you can't make it work. Let me know if you have trouble finding this. I know lenders who would do the second too if you can't get seller financing.

Cheers!

Hi Nick! Would you mind sharing the lenders who allow 2nds and also the ones who would do the seconds? Thanks!

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Quote from @Levi Bennett:

Hey Sean, I don't think you can do it exactly like that, but I do have a client who "games" the system (so to speak) and creates an LLC where the seller becomes an investor in the LLC, and they have a payout schedule just like a mortgage for the remaining balance, and the LLC is subject to the loan. SO it's not technically a second lien, but functions like seller financing. Very creative, and he's done a few that way. He's usually able to acquire with no money down if they can convince a seller to do it.

Hey Levi! Would you be able to share who he uses to finance those deals and also what the operating agreement of the LLC looks like that spells all that out? Are the lenders aware (are they reviewing the LLC docs) or is it just not mentioned? Thanks!

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Quote from @Stephanie P.:

Quote from @Joe Kvidera:

Working on a deal that the seller is open to carrying up to 10% of the down payment. This will be a STR and airdna fully supports a good DSCR. I've spoken to a few lenders, but they are not allowing a seller carry for any of the down. Does anyone have a recommendation of a DSCR lender that will allow a seller carry for the down payment?

Thanks!

Joe

We can do that as well.

Hi Stephanie! Do you lend in TN and how much do you allow the seller to finance and how much does the buyer still need as a down payment please? Thanks!

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Quote from @Eliott Elias:

I have one that can do this

Hi Eliott! Would you mind sharing who please? Thanks!

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Quote from @Erik Estrada:

Quote from @Rich Manfredi:

Looking for lenders that service TN that will use AirDNA to determine DSCR for short term rental AND that will allow the seller to finance (second position) the portion of the purchase price not covered by the main DSCR lender... has anyone ever had any success finding one? In other words, lets say the DSCR lender will only lend 75% LTV but they will be ok with the seller financing the other 25% so an actual cash down payment won't be necessary. I know it will be slightly riskier for the main lender but most of the risk will be taken by the seller since they would be second position. Thanks!

You can combine seller financing with hard money loans. Hard money lender must be in 1st position though.

You will still be required to put 5% down, unless you cross collateralize with another property.

You may use Short term rents on a DSCR but cannot do seller financing for the downpayment.

Thanks! Do you offer these types of loans in TN?

0 Votes

Knoxville, Tennessee

Quote from @Dennis Muno:

Contact a mortgage broker. A mortgage broker will be able to shop with multiple lenders(usually 20+) to get you the best DSCR deal possible.Some lenders they find may be able to work with your situation. Who knows?

Thanks!

0 Votes

Knoxville, Tennessee

Hi Sarah... no particular reason other than I was under the impression that appraisals typically used long term rent rates rather than short term... and thanks!

0 Votes

Knoxville, Tennessee

2 Votes

Knoxville, Tennessee

All Forum Posts by: Rich Manfredi

Rich Manfredi has started 2 posts and replied 10 times.

Post: Cash out refinance for land?

Post: Cash out refinance for land?

Post: STR DSCR loan + seller finance

Post: STR DSCR loan + seller finance

Post: DSCR that allows seller carry for partial down payment?

Post: DSCR that allows seller carry for partial down payment?

Post: Any DSCR lenders for STR that use AirDNA & allow seller financing for down payment?

Post: Any DSCR lenders for STR that use AirDNA & allow seller financing for down payment?

Post: Any DSCR lenders for STR that use AirDNA & allow seller financing for down payment?

Post: Any DSCR lenders for STR that use AirDNA & allow seller financing for down payment?