All Forum Posts by: Ryan Herting

Hey @Camerron Feagin, Well, typically the only upfront fees should be an application and appraisal fee. Some lenders do that -charge a processing fee, but I never heard of them returning it. I would do some more digging. People also call the loan processing fee a "legal Fee" 

Also, @Brian McCartney, not sure if you need clarity on the difference between the two, but here is an article on Investopedia-https://www.investopedia.com/a... 

Hey @Brian McCartney,

I would say it depends on a case-by-case basis. What I can say, is you should have a team of lenders that you can go directly to as well as a mortgage broker. They will both come in handy when scaling your portfolio. 

Being that the mortgage broker is an intermediary between you and the lender, you most likely will incur more fees. On the other hand, you will get a variety of quotes from a pool of lenders when working with a mortgage broker (In this case you don't have to do the majority of work sourcing the capital). 

There are pros and cons to working with both, but I would reframe these questions to-and you should be thinking about this on each deal - who will be the most supportive and offer me things like more leverage, speed to close, etc. 

Let me know if that was helpful!

Hey @Kenneth Mims,

It sounds like you are looking for is a portfolio cash-out refi loan. Then beyond that, there is a list of questions that you could ask the lender, but that is dependent on what you are looking for (i.e. higher leverage). You should also know that rates and terms are not as lenders advertise. In other words, rates and terms vary based on the deal, your experience, and couple of other specs depending on the lender. 

Hope this helps!

Hey @Ali Masoudi,

what are your goals as an investor? Are you looking for properties that cash flow or that will have more of an appreciation? What assets do you already have in your portfolio?

Hey @Jonathan Beaumont, I would definitely recommend negotiating with the seller. I would also recommend doing some research and to pull some comps as proof for the seller

@Nikki Frick, we would love that! I'll update the IG handle but if you could tag @ifundcities, that would be the best handle

@Jon Collins, no problem at all. Not sure where you're at in your investing career. 

I was once an investor I very much understand, and get frustrated about, the "scams" or "out of touch" lenders out there. 

My goal is to try and make sure other investors are knowledgeable when it comes to vetting lenders and understanding financing their deals. Please pass along that list!!  

Hey @Jon Collins, 

Here is a list of 20 questions you should be asking to vet a lender. 

1. Any upfront fees (There shouldn't be anything other than an application and appraisal) 

2.Do you have a minimum loan amount? (Example answer -For 30-year rental loans, 100K min. For short-term bridge loans, 75K min.

3.Do you have a minimum FICO score? (Example answer-Depends on experience level, typically the lender will want to see above 640 

4. Am I required to have "skin in the game?" (Example answer - don't do 100% financing. Max LTC is typically 85% and LTV is 75% max

5. Do you withhold inspection fees? (Example answer The fee for the draw inspection fee is $250, which is paid directly to the inspector)

6.Do you lend on rentals? (Example answer Yes, we do have 30-year rental loans)

7.Do you use a house appraisal or a licensed appraiser? (Example answer -The appraisers need to be licensed, but we do accept appraiser recommendations)

8. Do you dictate the standards of repairs I have to make? ( Example answer- No, numbers just need to make sense)

9.Are there any specific geographic areas that you don’t lend in? (Example answer - No CA, NY, NV,  and no rural areas)

10. Do I need cash reserves? (Example answer -Yes, that amount will vary depending on the loan you’re doing)

11. What are your interest rates? (Example answer -Depends on the loan program, property type, loan amount, and your FICO)

12. How many points do you charge? (Example answer Typically 2%)

13. What is the loan to value you lend at? (Example answer Max 75% LTV

14. Is your LTV based on the purchase price or ARV? (Example answer - max 85% LTC on rehab loans or 70% of the LTARV (lesser of the two)

15.Do you lend on repairs? (Example - Yes)

16. How quickly can you close? (example answer Within 3-4 weeks, 5-14 days)

17. Does your company charge any additional fees? (Example - Legal fee of $1,850 and $200 application fee)

18. What is required in order to receive your best interest rates? (Example - Over 9 deals experience in the last 3 years or 780+ FICO)

19.Do you require monthly interest payments? ( Example answer- Depends on the loan program)

20.Do you have ROI expectations? (Example answer - ROI expectations will vary based on exit strategy and loan amount)

All around I would also try to get a feel if that lender would have a vested interest in your goals, or if you aren't sure of your goals, they should be helping you on laying that groundwork to help you scale.

Hope that was helpful!

Hey @Jonathan Farber,

It depends on what you are looking to achieve. If you're looking to refinance using the purchase price as the value, then private lenders can do it immediately. As an example, If you bought at 100k but you think it's worth 150k, lenders would need it to be seasoned for 12 months in order to provide a loan on that 150k. If you bought for 100k and put 50k of renovations into it and now it's worth 200k, then lenders would need it seasoned for about 6 months before they could refi using that 200k value.

Let me know if that helped!