All Forum Posts by: Timothy Hero

Even if the LLC had credit, DSCR lenders always go off your personal credit, but as stated above, yes, you'd have to PG it. If you make your payments as expected, there's no more risk than doing a normal mortgage. The loan isn't on credit, which helps the DTI.

Just make sure the lender doesn't make you sign an Equity Pledge Agreement at closing.

Fix and flip loans with hard money lenders and DSCR loans don't look at work history, DTI, taxes, etc.

Many lenders got rid of HELOC's when COVID happened. We saw lenders requiring a 30-day "pay balance in full" situation. To top it off, you're trying to do it for a property in PR. This won't be an easy task.

Always use a broker. We're worth the 1-2% lol.

Over 250 closings as a mortgage broker, I've realized there is no "average". So many things determine the rate, and when there's many variables, there's no average.

The scary part about is STR's, at any point your local government can ban them, as we've seen in major markets.

I'll say this: as someone who's brokered many DSCR loans with many different lenders, 95% of the DSCR space stopped lending to STR's a year ago because Wall St. isn't buying the notes for STR's. That's not a good sign. STR's are usually higher valued properties. You don't want to be stuck with a higher value property that you can't even cash the equity out of because no one will touch it.

Seeking cash flow opportunities by getting outside of CA is a solid start, but Florida is anything "but slow" for market conditions.

The market (at least South Florida) is starting to become a CA with pricing. I'm from the area, so I'm very familiar with what areas to stay away from, and homes in high crime areas that were worth $100k 5 years ago are now going for $350k.

You're coming from CA, so $350k is a drop in the bucket in your eyes, but in the normal world of RE, to pay $350k for a property and have drug dealing outside the property is not ideal.

Florida is great for STR's. Most of the STR's I quote for financing are Florida, but the issue is the last hurricane caused a surge in insurance. Expect to pay 30-50% more for insurance in Florida than any other state. Then add the fact that it's an STR and expect another 10-15% increase.

As someone who has closed DSCR mortgages in all these cities, I'd recommend them all, but stay clear of St. Louis. Like all towns with high crime, it's not entirely bad, but you do run the risk of lenders wanting to reduce LTV to reduce risk due to the area (if you're going DSCR anyways).

Everyone is different. What works for one may not work for someone else. Luckily, there's many ways to make a fortune in RE.

I have never wholesaled, but I've spoken with many who made $20k+ on their first deal, which is 6 months salary at a 9-5 for many.

For me, I escaped the 9-5 just 3 months after joining the mortgage side.

I'd say rental investing and being a realtor would take the most time, however.