All Forum Posts by: Timothy Maloney

@Vincent Johnson Keep your score up 700+ and you'll have the means to borrow easily (and at lower rates).   I presume your credit file is 4 years old which probably looks light to many lenders.    Inbox me (or give me a call) and in a few minutes I can tell you exactly what opportunities you have (whether with me or a local lender).

I have a fix N flip program that's 90% of purchase + 90% of rehab I could probably get you in.   Of course, Hard Money.   I think I'd have a tough time with a large long term fixed loan unless the 4 years of credit was substatial (Student Loan + Car Note + some revolving).

Best of luck!

Any property non owner occupied is eligible for a commercial loan. In fact, it's great to see others mentioning this as the temptation to use personal type loans (FHA Fannie/Freddie) and tell the lender you are living there is pretty high for new investors.

Elle,  if the property is worth 100K or more you shouldn't have difficulty with a long term fixed commercial mortgage.   If it's less than 100k in value you might have fewer (more expensive) options like hard money.   I just did a 6 family in Syracuse at 5.15% for a 25 year note for a strong FICO borrower.

Rob,

Our hard money guys charge 12% interest only while in repayment.   Figure max of 75% of purchase price + 2-4 points at closing.  

As an alternative, but far more "expensive", consider a highly leveraged bridge for investors like yourself. 90% of purchase + 90% of rehab costs (so long at combined loan is less than 70% of ARV) at 10-12% interest. Sound too good to be true? It isn't - It's just high origination fees.

At the end of the rehab you have *presumably* created some equity and you can roll into a long term fixed 25 year AM at XX% interest.  

Message me with 4 pieces of info and I'll give you exactly what it will cost : Purchase price, Rehab budget, Expected ARV, and your estimated FICO.

Here is a generic scenario for YOU - assuming 700 FICO. You want to fix N hold a home for $35000 purchase. You have a $15000 rehab budget and the ARV will be $79,000. You'll need 10% down ($3,500) 10% of rehab you pay ($1,500) plus 6 interest only payments of $374.63 = $2,247.78 plus closing/origination fee of $2,900 - $3,800. So for $12,547 total you can rehab that house. Obviously this does not include your carrying costs.

I have to agree with Russell.   I see it more and more - Not the Federal prison consequence but a Fannie/Freddie lender putting you in default.   Then you come to a guy like me looking for an emergency bridge to get you out of a jam and no lender will touch you because of questions about character (since you're in default).   

@Eddie T. I'm not certain I ever mentioned LOCs but there are couple of different options. Larger, portfolio loans, often have a LOC possibility. These are in the several hundreds of thousands and up.

Small LOCs, like I think you are referring to, are really an exclusive product for high FICO clients - they fuction much like a credit card...  The borrower draws when they need money and pay down both principal and interest monthly - If they need more money they draw again.

I've approved maybe 1 in 12 700 FICO borrowers. This is essentially a very low interest "personal loan" or LOC like a traditional bank offers. Most people wouldn't qualify.

Hope that helps. Did you see that LOC option on our website or another thread?

@Chris Mason  A few borrower motivations:  Non-recourse loans, off personal credit, and poor personal credit.   In commercial we look more at the property (and it's ability to cover the debt) than we do at you personally.    Sure, a 625 FICO will hurt your rate but it won't be a deal killer.

I have a few people who are up to 30+ properties and to hold them personally would approach impossible as lenders would look at the deal and just take a pass (rather than seek to underwrite the person's 30 other properties).

@Eddie T. Yes - we lend nationwide.   

Quickline Capital is based in Syracuse. Faster and more flexible than large banks with competitive rates, LTV amounts, terms and yes - you can buy and hold in your LLC. Call me anytime - Tim

Give me a call anytime if you have questions about financing or the OCREI group.   Quickline Capital is right in Syracuse (Eastwood)