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All Forum Posts by: Steven Goldman

Steven Goldman has started 15 posts and replied 508 times.

Post: DSCR Loan Question - Local or National?

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454
Quote from @Chris Rosenberg:

@Myrtle Mike Thompson gave some great advice for our local market. If you’re looking for condotels your best bet is to go local. 

@Steven Goldman I 100% agree with you. DSCR loans are my only option bc of my DTI but some of them close very fast. I've had one close in about 25 days (not business days). My last refinance which was last week took about 45 days. The appraisal took a while.

@Christle Stezskal My appraisals cost about $850 for the value and income reports. I’ve also had rates jump on me during the process but still got a good rate. Points and fees didn’t change. It was I think 1.75 points and $1000-$1500 in fees. 

@Chris Rosenberg: We find DSCR loans close in under a month. But only if the appraiser and title cooperate. @Christie Stezkal: While your rate may fluctuate, your appraisal costs should be bid out and you should be presented with more than one option. The loan will only lock at commitment. But unless rates rise you should get the loan at the quoted price and costs. Chris, 20 percent is standard it sound to me like someone was using the 15 percent as a sales ploy. Current rates are less than 6.625 for a reasonably qualified buyer. Brokers or lenders who bait and switch damage the credibility of our industry. Your word is your bond. I would not do busines with a company or broker that changes their rates, fees or LTV unless they can give you a factual explanation for the changes. After all you are jammed up at the end with money and time invested so it is dirty business.

Post: DSCR Loan Question - Local or National?

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454
Quote from @Chris Rosenberg:

@Myrtle Mike Thompson gave some great advice for our local market. If you’re looking for condotels your best bet is to go local. 

@Steven Goldman I 100% agree with you. DSCR loans are my only option bc of my DTI but some of them close very fast. I've had one close in about 25 days (not business days). My last refinance which was last week took about 45 days. The appraisal took a while.

@Christle Stezskal My appraisals cost about $850 for the value and income reports. I’ve also had rates jump on me during the process but still got a good rate. Points and fees didn’t change. It was I think 1.75 points and $1000-$1500 in fees. 


Chris We find DSCR loans close in under a month. But only if the appraiser and title cooperate.

Post: Had a lender tell me...

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

Partially completed construction creates legal challenges to the lender. Are their potential mechanics liens or other claims which could divest them of their position on the property? However their are lenders who will lend on these projects. They will want other collateral. A second  on your home or another rental with equity.If you have a cash value life insurance policy they may use that as additional collateral.

The advice to google lenders was not as stupid as it sounds. I suggest you find a local business lender. Many of them will do this type of boutique loan for a price. It will not be cheap as the risk is much greater than a rehab loan prior to construction. The property will have to be in a LLC for them to be interested. Many of the companies which provided invoice factoring are doing these types of loans as the invoice factoring business was damaged by the easy PPP and Covid loans, so they are seeking new avenues to make high returns on their money. Good luck

Post: DSCR Loan Question - Local or National?

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454
Quote from @Sasha Mohammed:

definitely a Broker, and preferably one that specializes in DSCR-based lending. @Alex Bekeza, maybe you can help him out?

I agree with Sasha. Brokers are familiar with the numerous lenders and their policies. I respectfully disagree with Christie as DSCR loans are closed in 30-45 days routinely if you select the right broker and they select the right lender for your deal. The main hang up with turn around time is appraisals. In the extreme seller market place that currently exists the appraisers are not only busy but have increased their fees. Supply and demand. In my opinion you do not have to limit your search to a local lender you will be unnecessarily reducing your options . Good luck!!!

Post: Blanket loan options

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

Linh this is a tough one. Because of the low value per unit it is likely only local banks and credit unions would be interested in these properties as a portfolio. The other problem I foresee is you will not be able to release individual properties form the portfolio. Therefore,  its all or nothing. Sorry for the depressing response. But one truth is better than a thousand lies. Maybe you can find a private money lender and offer them a higher rate of return. Good luck!

Post: Financing investment property

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

Columbus is a great market place! If you are buying turnkey you will be able to go 80 percent LTV so long as the debt service coverage ratio and your credit score qualify. I would speak with a DSCR lender prior to your offer to understand your maximum leverage and approximate rate. In this rising rate environment you will not be able to lock your rate with a DSCR lender until the commitment. This makes pre-vetting the loan even more important. If you are willing to use a adjustable rate from a bank than you will be able to get a commitment at the time of application. I do not recommend adjustable products considering the current rate environment. Good luck.

Post: Getting Loans with no income??

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

I admire your vision. What you need to do is find an investor who will mentor with you so that you can learn the ropes. Than you need to find a property. Start out small. You will need enough money for a small deposit. Than find an investor, family friend, acquaintance and sell them on the project. Your contribution can be the leg work and the administration. Repeat a few times and you will be in business. All DSCR or Fix and Flip lenders will want someone with 6 months cash reserve before they will lend you money. Your income will not matter.

To build up a war chest you may want to wholesale and use the money you make to fund your deposits.

Initially you will have to flip in order to get your money out to increase your war chest to get going. You need to adjust your vision 10 properties in three years with no money or a job. Not gonna happen. 

Post: Non-Recourse Loan Products for a Three-Family Under $1MM

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

The more complicated you structure the deal the harder it is going to be to get financing. The guarantor will need to be a 20 percent owner of the LLC. That does not mean he has to contribute 20 percent of the down payment. It just means in the Operating agreement you have to own 20 percent of the LLC. You can be making a management contribution. Make sense?

Post: Seeking funding to buy unique motel property

Steven GoldmanPosted
  • Lender
  • Pennsylvania
  • Posts 524
  • Votes 454

Seth if you can find the investor and make him a member of your LLC than you may be able to get a DSCR. lender who would be interested in this deal. Otherwise, a second mortgage to finance the down payment is a universal no go. Wish you the best!

I have been involved in real estate since 1982. I have owned commercial residential, mixed use etc. The best advice I can give you is develop a strategy that you believe in. Make sure it is economically sound. Than execute. Finding money is not nearly as hard as finding a good deal. Be diligent, ask a thousand questions. Their are no dumb questions. 

As you move forward their are many money sources. A  d.s.c.r. lender will work with a lower credit score so long as you have down money. Start out flipping, if you do not have enough money to hold turn key. The possibilities are limitless. Real estate has risks, but it has great rewards. So do not listen to the naysayers. They are paralyzed! Good luck.