All Forum Posts by: Darryl Dahlen

You cannot use an SBA loan on a multifamily property. They are for O/O properties where the owner will use more than 51% of the gross rentable space. 

I don't see many seller carries as most of my lenders don't allow them. I don't want to speculate as to what good terms are since I rarely see 2nds. Also, keep in mind that the lender will factor that terms of the second into the overall debt load of the property. The property must be able to service all of the debt under whatever DSCR requirement the lender has.

If you need any help securing financing there are plenty of us here who can offer you advice, work with real lenders, and are transparent about the loan process.

I'd make sure you are talking to lenders (banks) so you can start to get an idea if you are a person they would lend to and what they look for in a property. A lot of lenders are very finicky about allowing 2nds and have parameters on how much they'll allow since they will still require a fair amount to come from you. 

Generally speaking, a lender will not allow the seller to hold a 2nd that's larger than your down payment. Meaning, if you are required to put down 25% to close the lender will want something like 15% to come from you and permit a 10% 2nd.

A $2,000,000 multifamily loan to a foreign investor (your profile says you are from Dubai) will require 25% down, maybe more depending on your footprint here in the US, property location, class, etc.

Please don't think for one second there is 97% LTV financing, or anything close to that, available. There isn't. Either she doesn't know what she's doing and is working with a "lender" who she feels she can cash in on who will take your money or she's part of the scam.

HUD fees are no joke and aren't for the faint of the heart, lol.

I can't imagine the loan amount that would require that kind of deposit. Not to be rude, but if you were obtaining a loan of the size that would require that kind of deposit you wouldn't be posting on BP asking if the lender is real. The largest deposit I've had required by a lender was $45,000 and that was a very large CMBS loan from a reputable insurance company.

Why would any broker need to hide who the lender is from a client anyway. That's why you have a fee agreement with a borrower. 

Secondly, outside of credit tenant lease bond financing, there is NO 97% financing out there.

What "lender" is this? Never in my years of originating commercial loans have I had a real lender ask for anything near that amount for DD and that includes CMBS and HUD lenders which can be on the expensive side when it comes to engagement deposits.

Deposit aside, the fact this person wants a deposit BEFORE she'll introduce you to a reference is a HUGE red flag. Secondly, the fact that anyone is promoting that high of an LTV is another huge red flag since that's simply unheard of. Personally, I think she's using that to bait you into sending the funds.

I agree with Chris. A lender is likely to frown on seeing the property pay off a personal loan, regardless of what it was used for. The aforementioned structure would look better. Taking a distribution from the cash flow is fine, as long as you maintain operational reserves, but using Peter to pay Paul can cause lender pushback.

Check out Velocity. Robert Grant, who is an AE there, has already responded to this post. He's a standup guy and they're a legit lender who don't require tax returns.