All Forum Posts by: Ryan O'Mara

Some HML might consider your rental experience, but most won't. They want you to have experience specifically in rehabs completed and sold. From the perspective of being considered a first time flipper, those rates/terms seem in line with most HML.

Any particular reason why you want a lender based in TX or DFW?  There are plenty of rehab lenders who lend in TX but not based there.  As long as they can accurately assess the deal, there's no reason to not consider them.  

If you want to PM me I could get you more info.

@Ulysses L. A refi cash out HML could work. Sounds like there is plenty of equity to allow for this. PM me if you want more info.

@Mark Wurtemberg  There are permanent lenders who do blanket loans for 1-4 unit properties that allow for cash out refi.  Shoot me an email and I can provide more info.

@John Geldert It is quite common for a HML to hold back the rehab funds and disperse in draws. But if I'm reading your comment correctly, it sounds like the lender required you to cover the rehab costs and provide it up front for them to hold in escrow. That is not normal and I would suggest you find another lender.

Most rehab lenders will generally loan you 80% of purchase price and 100% of rehab to be dispersed in draws.  Most will require you to have reserves in your bank account to cover the first part of the rehab and several months of interest only pmts).  Many lenders require you to start the project with your own funds and then the reimburse you.

The more experience you have, the better terms you will get.

@Jinyu Shao There are many options for you. I work with many commercial lenders who do permanent loans and do not require tax returns or use DTI. They can close withing 45 days (assuming no title issues).

You will typically need 30% of purchase price for down money and closing costs. And a FICO above 660 is helpful.

There are also short term lending options with HML if the property needs rehab or you just need a quick bridge loan.

If you're buying a commercial property (5+ units or pure commercial) then your options are narrower.  If you're looking at 1-4 unit properties, then you have many more lending options.

Point being:  you have options

I don't know any permanent lenders who would do this if the rehab isn't complete.  If it was your money, would you lend it to someone who hasn't done the rehab and doesn't have the property rented yet?

You'll be in a better position after repairs are done and you have a signed lease.  Seasoning will be the biggest issue.  

@Brian Knotts - I have two different lenders who loan to LLC's for 1-4 unit NOO homes and offer a full 30 year fixed loan option. PM me for more info.

Generally for a refi the LTV is based off the appraised value (assuming enough seasoning). So if there is enough equity, then you should not need to bring cash to the table.

With a seller financed deal you will want to make sure the title is in your name so that the lender can see you've owned it.  Otherwise they may consider it a purchase instead of refi and require the down money.

@Donceletta Bellamy Are you looking to rehab pure commercial properties or just purchase and hold?  Rehabbing commercial can be more tricky than 1-4 units.  Lenders will want to see you (or one of your partners) has experience doing this.  Also, if you plan to refi into a perm loan, the seasoning requirements for commercial can be as much as 2 years.  

So experience and liquidity will be biggest factors.  

@Thomas Mattausch There are lenders who will do cash out refi loans on this. LTV up to 75%, 30yr Am 5&10 year fixed options, 5-6%. Most have at least 90 days of seasoning on the property. PM me for more info.