All Forum Posts by: Rob Austin

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

Do you have experience? Any flips completed prior in the area?

3 buy and holds in the last 2 years.

0 Votes

Evansville, Indiana

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

1 Vote

Evansville, Indiana

Quote from @Jay Hurst:

Quote from @Rob Austin:

I'm under contract for a duplex in Indiana ($84,900) DSCR of 1.7

I paid for the appraisal upfront, and as soon as it came in, the loan officer is attempting to switch the loan from 85% ltv to 70% LTV, and raise the interest rate.

I'm looking for a new lender who is willing to use the original appraisal that came in today and offer 85% LTV with 7.5% interest as I was originally quoted.

Ready to sign and close right away.

You will not find a 15% down DSCR loan at 7.5% for a 2 unit. Unfortunately that was never available. If a rate/term is so out of the norm of the market it is usually not real. Now, there are a LOT of commercial purpose unlicensed LO's that were selling cars six months ago (nothing wrong with selling cars, just a different business) so they really just simply do not know what they are doing. Not that it helps you, but it may have been less of a bait and switch dishonesty but more incompetence. But, either way, you are going to likely have to put down at least 20% and the rate will likely go up if you want to proceed with the purchase.

Yeah you're absolutely correct.

I confirmed it with him at least four times though so I assumed he was double checking with his manager or in his system.

0 Votes

Evansville, Indiana

I'm under contract for a duplex in Indiana ($84,900) DSCR of 1.7

I paid for the appraisal upfront, and as soon as it came in, the loan officer is attempting to switch the loan from 85% ltv to 70% LTV, and raise the interest rate.

I'm looking for a new lender who is willing to use the original appraisal that came in today and offer 85% LTV with 7.5% interest as I was originally quoted.

Ready to sign and close right away.

3 Votes

Evansville, Indiana

For the first four properties that I purchased, the loan officers sent me "initial disclosures" which clearly stated the interest rate expected closing, expected monthly payment etc.

I'm currently under contract with another property and this company has already had me pay for appraisal and is trying to get me to order insurance, but I still haven't received an initial disclosure or anything like it confirming the interest rate and everything.

Is this normal?

The previous properties were all conventional, and this is dscr.

0 Votes

Quote from @AJ Exner:

Quote from @Rob Austin:

In my market there are a lot of homes that are between $30k and $75k that could easily be turned into short-term rental investments.

I'm wondering if there are any non-conventional lenders who loan for this price range.

It would have to be dscr or something similar rather than conventional.

Rob,

I am familiar with a group that might be a good fit, but you would have to purchase a few at once to make it work, as they have a minimum loan amount of 75k on a small portfolio, but single properties at ~$55k would be tough, even for DSCR.

A few at a time is totally okay. Could you put me in touch with them?

0 Votes

Evansville, Indiana

In my market there are a lot of homes that are between $30k and $75k that could easily be turned into short-term rental investments.

I'm wondering if there are any non-conventional lenders who loan for this price range.

It would have to be dscr or something similar rather than conventional.

4 Votes

Evansville, Indiana

Quote from @Katherine Blazer:

I just closed a duplex with mid 7s interest rate last week. She had the option to only put 15% down but decided on 20% because she wanted to increase her cash flow. She did have great credit and was in FL.

Would you mind sharing the lender?

0 Votes

Evansville, Indiana

All Forum Posts by: Rob Austin

Rob Austin has started 6 posts and replied 13 times.

Post: Looking for cash out refinance 75 or 80% with under 600 credit score

Post: Loans for properties between $30,000 and $75,000

Post: Rural fix and flip, comps are 10 miles away

Post: Rural fix and flip, comps are 10 miles away

Post: Under contract, loan company is trying to bait and switch, looking for a new lender.

Post: Under contract, loan company is trying to bait and switch, looking for a new lender.

Post: Is it normal to not receive initial disclosures

Post: Loans for properties between $30,000 and $75,000

Post: Loans for properties between $30,000 and $75,000

Post: Looking for DSCR With 15% down near 7% interest rate