All Forum Posts by: Sean Thompson

Alot of asset based lenders still will require a minimum credit score, and your credit score will still influence your interest rate. Something to consider is to partener on an entity with someone with a good credit score, then refinance the property under that entity. 

A good one will require insurance on the property. 

To echo what most people said. You need to decide what your goal is with the property. If you are planning on flipping property I would urge you to look at a bridge loan which can be originated by "private money" or some lending institutions will do bridge loans as well.  This will allow you to maximize your cash and in alot of instances will finance the renovations. If you are looking to hold long term then conventional mortgage will most likely be your best option as interest rates are still very low and will help you maximize your cash flow on the property.  

I think it is a very situationally dependent question. Depending on the property, your goals with it, and your personal financial situation. Yes conventional financing is going to have the lowest interest rates but not every person or property checks the conventional box. Reach out to a few DSCR lenders for rate and terms to see for yourself!

@Laura D. the agent wants to ensure you can close on the deal. Because you are utilizing a HM lender for funding does not guarantee you can close the deal, so it is not the same as an all cash offer even though they can close with the speed of one. HM Lender should be able to provide you with a POF.

@Brandon Allenczy It depends on the lender. Some will allow 2nd position loans behind them, and some will not that would be something you need to ask before purchasing a property with a HML. To echo what everyone else said on your second question the lender should be able to provide a proof of funds letter for you to make offers with. Good luck!

I would try and reach out to regional or local lenders in the area. Nationwide HM lenders may shy away due to smaller population areas. 

@Steven Ragsdale start with the end in mind. If your goal is to cash out refinance into a 30 year fixed interest loan find your lender first, get prequalified and make sure they understand what you are doing. Don't wait until after you have acquired the property, rehabbed it, and rented it out to do this. Good luck!

@Elizabeth Nourse I agree with @Craig Yarnell. I think you can find a very competitive Interest rate at 75% LTV on a 30 year fixed for your properties no problem, not sure if there is much better LTV for a cash out in your situation. I would start shopping!

Hard Money: A noun used to describe any lending scenario that is not conventional mortgage financing and up for interpretation.... 

ok jokes aside.

... a short term loan (3 years or less), that values the asset as collateral, performed by a company or private individual but not a bank. The loan is utilized for acquiring the asset as an investor with the intent of either re-selling the asset, or refinancing for a long term hold.