All Forum Posts by: Stephanie P.

I've currently been shopping around banks for a DSCR loan on a BRRR. I've now had 4 banks get back and say they only offer up to 25 year amortization and 5 year rate terms. They can do around %8 on the loan. When i first started reading about DSCR i was under the impression they were still generally 30 year fixed loans.

Is 25 years and 5 year terms the current norm? Would you be reluctant to go with a 5 year term? 

Borrower currently goes with LENDER A, but LENDER A ends up with very high interest rate and fee.

To do price match, I would like to ask whether I need to show LENDER A the lower rate & better fee from LENDER B's rate engine on their portal? 

or if LENDER B's approval and CTC are required to match the price?

and is it legal if LO submit one file to 2 different lenders at the same time?

I know this fluctuates, but just want to see what other people are getting loan wise for a loan on multifamily over 5 units?

I've been recently quoted 10%, seems a bit steep...

Hello all. 

So I am getting ready to cash out refi my first investment property, i will put all the numbers at the end. I bought the property with a fix and flip hard money bridge loan, put down roughly 22% and and financed 100% of my rehab budget into the bridge loan. 

I got one qoute today that looks okay, but the cost the loan (underwriting, closing, ect) accounts for 16% of the loan. Taking almost half of my cash out. This loan is with no seasoning period. i can wait another month and be at 3 months, or wait longer and be at 6 months. are there better deals out there. My goal is to get as much of my cash back into my pocket as possible. 

DSCR REFI qoute

loan amount: 112,000

rate: 8.99

points fees and cost: 11,576

cash out value: 16,424

Bridge loan. 

84,000 interest only 12 months at 11.99% 

property will rent for 2000 at a 1.76 DSCR score.

thank you

So I am self-employed and currently have no W2 income. I have found a deal that seems very intriguing on a duplex, and I wanted to hear opinions on how others would go about this deal if they were in my situation. There is an off market duplex priced at $215,000. 2,294 sq ft in total, 2 beds 1.5ba in each side of the duplex, 4bd 3ba total. I would estimate the property needs about 70k in rehab (conservatively, possibly less- I have not seen the property in person), and each side would rent at a minimum $1,300/mo. I guess I am wondering at first if this is a good deal to consider buying, and how would the financing piece go without a W2 income, and needing money for down payment/repair costs. Any insight is greatly appreciated- thank you!

I would definitely like to start with a multi-family home but I currently live in Charlotte and can’t afford a Multi family at the moment. I also only make about 40k a year currently which doesn’t give me much buying power. 

I know DSCR could affect my DTI, maybe if I put it under a llc and sign as the guarantor could I work around it affect me personally?

I recently purchased a duplex with seller financing (3 year note). I would like to put my LLC on the title instead of my own name, but knowing that I will need to refinance within 3 years, will it be harder to get a loan with the LLC? Would it matter if it is conventional vs DSCR? Could I just put it back in my name if need be? Thank you!

Hello BP!

My partner and I just completed our first house flip in Vegas NV. We went through a Hard-Money lender for both the loan and rehab cost. Unfortunately, this project took much longer than anticipated. The property has been on the market for 40 + days now and we just made a price reduction. 

The issue we are facing now is our loan period ends middle of next month, which after we will be subject to pay extension fee and possibly high interest rate. 

We're thinking of delisting it and applying for a DSCR loan to pay-off existing loan with a cash-out refi. We would than look for a tenant to rent for 2-3 years (lease option) and re-coup the rest of the funds at that time.

Any suggestions or recommendations would greatly be appreciated! Feel free to reach out

Thank you,

Armand

Hey everyone,

I am a 28 year old who currently lives in NC. I just want to explain my circumstances and see how people with experience and knowledge in real estate would move forward if they were in my shoes. I have $150k in cash that I received from an inheritance and would like to use it to invest in real estate(I already have 6 months of reserves of my own money saved). I also have a credit score of 756.

My overall goal is to buy enough doors to supplement working full time so one day I can focus full-time on becoming an entrepreneur. I know that will take some time but I would like to get started ASAP! I took a few years out of work to take care and spend time with a family member whp passed, so I have only been working for a year now. This has caused me to have trouble with getting approved for loans/mortgages due to my work gap. I have done some research and have found a few ways I could possibly start investing in real estate. If you would take a different route than the ones I’m going to list below please let me know.

1. Since I can’t afford to pay cash for a home here in North Carolina, pay cash for a home in places like Detroit, Alabama, or Ohio. I would then renovate, rent, and refinance. Rinse and repeat this process over time.
2. Instead of paying cash use that money and spread them over multiple dscr loan so I can own more doors and just collect the cash flow after expenses.
3. Wait another year so I can have two years of work history/W-2s. This would increase my chances of being approved for a FHA loan. This would allow me to save money compared to paying cash or the huge Down-payment DSCR loans require.
   

Are there any other no documentation loans other than DSCR loans that I should look into?

If anyone has any advice or recommendations on how you would get started in real estate if you were in my shoes please let me know any and all suggestions would be greatly appreciated!

Has anyone experienced a lender treat you differently after reviewing your financials? I am working with this lender who was so friendly and helpful. I was fist trying to qualify for a conventional but since I can't verify some of my income and my tax returns are a bit of a mess, I'm going down the DSCR loan path. But this lenders attitude shifted. He says I wouldn't have any issues with getting a DSCR loan but "good luck finding any deals that pass the 1%." And he supposedly works with investors.