All Forum Posts by: Darryl Dahlen

I don't do residential loans, but I did a quick search for you on another site.

It doesn't look like there are many conventional options, but I did find the name of lender come up. Check out Amtrust to see if they can help you.

That sort of LTV is not typically associated with hard money.

I think you'll find that 65% LTV is more realistic, but please let us know if you find a real lender.

If you are seeking a long term loan, then Fannie's small loan program is great for projects in the 1-3M range. The terms are very similar to HUD, and while this program isn't cheap either, it is less costly than a HUD loan.

Your post provides some valuable insight into some of the downsides of a HUD loan. You are correct in that on a purchase, the fees associated with the loan are "tacked' onto the rate so you will end up with a rate higher than what you are quoted. The HUD analysis that is provided prior to engaging the lender ought to cover that point, but there can be some sticker shock when you think you're getting X, but in reality, it is X + Y, and Y can be as much as an extra 1.75% to the initial rate.

However, that is not an an issue on a refinance as almost all of the costs associated with a HUD loan are mortgageable. That means the rate that is quoted is the rate you'll get, and last time I checked, that rate is in the 4s.

The upside to a HUD loan is a having a long term loan (up to 35 years) with a high LTV (up to 85%), and on a non-recourse loan. Not to mention, HUD is one of the only places you can go if you need to do a cash-out refinance (up to 80%), rehab, and construction. If you are in need of any of those, HUD is often your only choice.

In my experience, HUD is best suited for large properties in the 5M and up category. When you get into properties that are in the 2-5M range, I think there are other financing options that are better suited for those properties.

Is HUD perfect? Not by a long shot. Like most things in real estate, you have to weigh the pros versus the cons and measure that against what you feel is important to you as a borrower.

Bryan, thank you for your vote of confidence. I truly appreciate that.

That is a great point, and something that should be explored further.

If you could secure seller financing with only 10-20% down, and the terms are reasonable, you would be hard pressed to find anything better in the conventional market.

For larger loans (2M and up), even if you can secure a low interest loan that is 20+ years, there are a LOT of costs associate with those loans.

For smaller deals, you often need to put down 30-35%, which obviously mean more money out of your pocket.

A seller who will accept say 10% down allows you to stay capitalized.

Ideally, you find a property with decent equity, finance the property with the seller, make payments for a year, and then do a conventional rate and term refinance to obtain the best terms.

Because of this thread, I got bitten by the Angry Birds app.

I have since drained the battery in my phone twice playing the game.

Sorry Bryan, I saw his question and didn't want it to go unanswered.
Are any of you beeing offered ARMs? I can clients loans with one, two, or three year terms, but even those have fixed rates. I just don't see adjustable rates outside the SBA.

He means that he doesn't think it is a good idea to take a commercial loan that has an adjustable rate with no limit on how high it can adjust.

While I agree that it would be scary to sign for a loan with an adjustable rate, sometimes that is the difference between a loan or no loan.

For instance, SBA's 7a loan, which has tremendous loan volume, has adjustable rates. Those loans adjust quarterly, not monthly, but most lenders don't have have a cap. I know that those loans aren't related to multi-family deals, but the point is it is a viable product with 100's of millions in loans closing.

However, multi-family properties can usually secure fixed rates. I haven't been offered an ARM in a LONG time from a lender, but as it has been mentioned several times in this thread, outside of HUD/Fannie/Freddie loan products, it can be very hard to secure anything longer than a 5 year loan from lenders now.

I think this site is pretty good about policing itself when it comes to spammers and their like. Given the solid base of knowledgeable posters who post here daily, that goes a long way to keep the undesirables from feeling too welcome.

Still, I think upping the minimum post count before someone can post in the marketplace forums would be a good idea.
It isn't hard to hit 10 posts if someone puts their mind to it. If the the number was say 25, then the member has to participate to a higher degree. That difference can help to establish a foundation of knowledge or social networking OR to let us know if they're a dud.