All Forum Posts by: Robins Dorvil

I work with a lender that lends up to 70% of VALUE, not Purchase Price. For example, if I find a fixer home that has an as-is value of $200K but I negotiated a price of $140K, I would essentially be able to get 100% financing! My lender would verify the $200K value by getting a BPO or CMA from a local trusted real estate agent but those are cheaper than an appraisal and only take a couple days. The lender knows full well that the home may not be bank financeable but they also know that there is a value for everything so they are willing to lend on the current as-is value regardless of condition. It is huge for me as I can finance several properties at once.

Hi there, nobody has mentioned Las Vegas (specifically Henderson, NV).  The absolute WAVE of fed up Californians are moving in at a record pace as well as everyone else in the country. One of the benefits is that there is no state taxes.  Its not all gambling either.  A very normal city outside the Strip.   I live in Denver and I have been investing in Henderson for the last 3 years.  I also got my real estate license there too (I am a Broker in both states...Colorado and Nevada).  Tech companies are moving there as well and of course the Raiders who's practice field will be in Henderson and a planned Madison Square Garden Sphere in Las Vegas.  Right now, my properties cash flowing very well with 20% down conventional.  Please feel free to reach out if you would like to chat about it. 

I have been looking at doing just that and I am happy to share what I have found:

1. It is very possible, and can be very profitable to use HML with high leverage.
2. Call as many different lenders in your area and nationwide lenders and get a feel for who will finance into a LLC and what their seasoning period is.
3. Decide if this is an investment, or a business. If this is a business, don't let the high cost of a HML scare you, especially if you can get 90-100% financing for the deal. If your goal is to refinance as quickly as possible you will be able to buy more properties and have a higher cash flow with the higher leverage.

I have an HML that will lend 90% LTC, then refinance immediately at 80% LTC or 70% LTV after a year for 10,15,or 30 years. No loan floor. What that does for me is as follows:

Assume I have 50K cash to start with, also assume each property I buy for 45K and plan to put $5K into it to make it rent ready. Assume I want to leave 10K in cash for reserves, in year 1 I can purchase 5-7 properties and begin to rent them out. Lets also assume the ARV on each of these homes is 80K. After a 12 mos seasoning, I can refinance each of my 5-7 properties at 70% ARV. That will pull $56K out of each property, $6K (as much as 42K) in cash for each property comes to me. At the end of year two I can have 10-15 properties cashflowing.

Looking at traditional commercial loans (what you need to close in an LLC) they require 25% down at least and at most will only go 15 year notes at this low of a loan. So lets take the same assumptions (50K in cash to start, homes for 45K with 5K repairs, 10K in reserve), I can only buy 3 houses. At the end of year 1 I refinance each of my 3 properties pulling 55K in cash out of my 3 properties. But at the end of year 2 I only have at most 6 properties cash flowing, instead of 10-15.

So its a longer road with HML and more up front cost but play this scenario out (I have with some spread sheets) over 5-10 years and you be amazed what that leverage does for you.

Yes they do. It is typically referred to as soft money. Same limited documentation as a hard money loan but rates typically from 7-9%. We offer a 5 year term, up to 70% LTV. Currently we offer this program is Georgia, Colorado, Texas, Arizona, and are always willing to look at good scenarios in different states. Feel free to reach out to me if you would like to learn more.

The forms are free for PRO members. If you're having problems, submit an email HERE and they will help.

I wrote an article on this not too long ago. This may help: 

https://www.biggerpockets.com/member-blogs/10145/83188-finding-emerging-markets

I will message you