All Forum Posts by: Timothy Maloney

@Syeed Shah, Although I am unable to cross collateralize anything owner occupied we do fund many projects using another home as the down payment. The difficulty you will face is that most lenders on BP will be unable to mix a owner occupied property with an investment property. For local banks/credit unions that *could* if they wanted to they don't because that deal is typically too complex for them to want to create a loan program. I wish you the best of luck and recommend finding a LOCAL HML who might be willing to assist.

Hi Jimmy,

Love that these are back.  I have a few borrowers there and would LOVE to join next month.    

Tim

A 203k loan seems right up your alley.   Typically 5% or less down and they cover the cost of the rehab.    There are limitations though...    1. You must use approved contractors   2.  You must do whatever work the lender decides  3.  You must live in the property XX number of years.   

It is a great way to get started but be careful to follow their rules.

Good luck!

@Preston Davie Technically, yes.    You may need to show 3-12 months of on-time payments in your payment agreement to be funded.    If you aren't in an agreement and have significant debt - I don't believe any programs will work.    I'm a private lender and it wouldn't even work for us.

Good luck!

@Merle Spencer Moss Please proceed with caution. 9 of the 10 top lenders in this space have halted funding of closed. No one has millions to invest in long term notes like the one described above. As the capital markets lost liquidity they also became alarmed at the possible devaluation of their collateral on existing mortgages. I am unaware of anyone (HML or PML) closing commercial loans like the one above at the moment.

Beware of scams - many unscroupulous entities are claiming they can do things they can't.   All in an effort to get you to pay $1,500 - $5,000 in non-refundable "due diligence" or "underwriting" fees.

Any lender that charges anything prior to closing should be a red flag.   

@Amaury Reynoso  I would be happy to share a borrower near you that could provide feedback.    I don't see you in our system at all so I am unsure who you may have as an account executive but I would like to offer to personally assist you with any questions/scenarios you'd like reviewed. 

I hate to use BP as advertising but I want to say that we are an exceptionally transparent company.   We provide loan terms/approvals same day and NEVER take a penny from borrowers.  We have no doc fees, no underwriting fees, or any of that. 

When we close we will do so at your title company or attorney's office.

Feel free to call me anytime.

@Shannon Beavers That's an amazing first flip!    

It's hard to evaluate the flip without knowing your numbers but from a glance, I can say your design choices while thoroughly addressing each room should get you multiple offers this week.    

It does not appear to have been over rehabbed in any way while also being perfectly priced for the area.  That place should set a new comp.

I LOVE what you did with the front porch!   

Good luck!

@Henrique Sousa,

80% LTV is very possible with a strong credit score (740+) and solid rents (1.25+ DSCR). I am speaking on behalf of Private Money Lenders and not necessarily banks/credit unions. Expect a rate in the 6's for a loan of that size with minimal origination and a low/no doc fixed rate loan. Of course, you may always buy down the rate to whatever you'd like if you have a long investment horizon.

PMLs often have no seasoning requirements.    Even those that do will look at cost + rehab for a new valuation.

Good luck sir!

@Denzel Ray Yes, we fund first time investors.   

@Vaibhav Verma You can cash out of a property at 70-75% LTV today with a HML. Expect rates above what your bank is offering but with 1/4 of the paperwork or wait time. Typical rates run : 0-2 points at closing, 6%-7.5% for 30 year fixed (lower for adjustable). Good luck - I hope this helps!