All Forum Posts by: Ryan O'Mara

@Jon Marois - There is no "typical" broker fee.  It's on a deal by deal basis because every deal is different.  That's why it's a point based system.

It depends on what type of deal, loan amount, how much time and effort are involved, how quickly does the borrower need to close, etc..

If a broker has to put other deals on the back burner to rush this deal because the borrower needs to close quickly, then the fee will be higher.  If the borrower has IRS tax liens to get cleared up which will take time and effort, the fee will be higher.

Also, not all brokers are equal.  Some are excellent at what they do, coordinate all aspects of the deal between all parties involved and smooth out any bumps in the road (there are always bumps).  And some don't.  

I would recommend you make sure your broker is full service and won't just dump you on the lender to fend for yourself.  

@Rachel Stewart - perm lender is a lender who does longer term, permanent loans for holding a property for several years.  Which is different than a short term loan like rehab, bridge, ground up construction.

 Also, the lenders I work with don't need W2s.  They don't underwrite off of tax returns but rather how the property services debt.  The main considerations for the borrowers is liquidity, FICO, and not having major issues such as liens, bankruptcy, lawsuits, etc.

@Rachel Stewart - you may have issues getting a bank/conventional loan with a newly created LLC, but there are plenty of perm lenders for 1-4 unit properties who would have no problem with this scenario. If you're willing to partner with you parents and create an LLC together, then there should be no issues with source and seasoning of funds.

@Travis Moore - seems like option #3 would be your best bet. If you have a lease with this tenant and the DSCR is at least 1.2 then a 50% LTV loan should be no issue. Assuming no major issues with you as a borrower or title.

PM if you need assistance.

@Jeremy Resmer - there are many lenders lending in the 1-4 unit space willing to do perm refi cash out loans. But they all have different criteria when it comes to things such as: seasoning, dscr, territory, LTV, min. property value, etc.

A detailed snapshot of the deal would be needed to properly place the loan.  PM me if you need assistance.

@Jonathan Edmund - if you're going to do seller financing, make sure that you are on the title.  Otherwise there will be no seasoning and when you go to get a loan the lender will treat it as a purchase, not a refi.  And then it doesn't matter what the appraised value is.  The lender will lend off the purchase price and you'll need additional down money.

@Burt Gourley - If I'm reading this correctly, the bank said NO at the last minute?  If that's the case, you need a bank alternative perm lender to do the cash out refi for your free and clear property.  You might be able to do both properties together under one blanket loan to get more cash.

 PM me if you'd like to discuss.

@Justin Lukus - This is definitely a HML. Have you tried getting a permanent cash out refi loan for these properties?

Also, if the goal is to use the cash to rehab a property you already own free and clear, why not just refi cash out on a rehab loan for the property you want to rehab?

PM me if you need assistance.

@Nova Dear - Every lender has different criteria, but in general, any member who is 20% or more owner of the LLC will need to guarantee the loan. All FICO scores will be considered. Some lenders will take the lowest score and some will take the mid score (3+ members).

Other issue you may run into is location.  Many perm lenders are currently shying away from Cook county.

@Jason Munger - Blanket Loan is the term you want to look for.  Some people use the term portfolio, but as you've found, that term is also used to denote a loan held by the lender on their own books.

You would want to do a blanket loan that includes a refi cash out of your existing properties and the purchase of your new acquisition.  

There are many lenders who offer blanket options.  Each has different criteria in regards to seasoning (of existing properties), min value/property, dscr, FICO, location of properties, etc...

If you need help, let me know.