All Forum Posts by: Vitalii Lunko

 @Vitalii Lunko   A few items to consider here:

1. why a DSCR loan? Why not a full doc or conventional loan which will have better rate/terms?

2. If you cannot qualify for a full doc/conventional, then DSCR would be the next best option, but why a credit union as they generally do not offer DSCR.

3. Also, how long have you owned the property? That will effect what you can actually borrower on the property due the "seasoning" of the property. If you have owned for less then 12 months  it will potentially limit your options on using the improved value. 

Most credit union LO's do not see enough deals to help your scenario even if they were to have the products you might need which they likely will not. 

@Vitalii Lunko- thanks . Creddit union not needed ..Ask friends for lender referals and check out the local mortgage compnaies near you . Do you for sure need to use a DSCR loan ? Contact several lenders - ask for quotes and ask if they can assist with your scenario - then make a decsion

Hey Scott - if you don't have any luck finding someone locally, I'm happy to connect. 

Hi Scott, I'm a commercial lender I'd to happy to see if I can assist. I have sent you a PM

I’m working on a deal for a non conforming lot with a 1, 2 and 3 family building on it. At this point all cash and owner financing are the only options that I see. The seller are not onboard with owner financing, but they have not shot it down completely.

Their initial concern is mortgage default should something compromise the grandfathered zoning and we are unable to recover and maintain payments.

Is there any type of private mortgage insurance that is available to provide them with that some security?

Thanks in advance for any insights

Buy it subject to existing financing if there is any. You get title and can do everything you mentioned. Your risk is if his financing institution realizes what you did and calls the loan. Might not happen if you keep the payments current but with interest rates going up, lenders probably won't let it go on for long.

I have built 100's spreadsheets by my own as well. 
Through Flix flip hold and brrrr , for my investors and myself. and probably will do one for this scenario as well... 
I was puzzled about the different FSBO financing options and how would they affect the profits within different amortizations/ down payment/ interest rates etc.
I guess I could use a basic mortgage calculator and imbed it to this calculator. 
Thank you all for your reply .

There is pros and cons to hiring employees to remodel and it is all based on your circumstance. Unless this is a business you plan on growing overtime I wouldn't recommend it. Subcontracting out work has a lot of benefits. 

The biggest one in my opinion is if the work is not done properly you have a contract stating what needs to be done or they don't get paid the full amount if it is not to the standard required. If you have employees you have to pay them no matter the quality of the work and you need to trust them. Now the cons are you will pay more for the services by not having your own crew.  

If you need help finding reliable contractors I would call local Real Estate agents in the area that work with investors and ask them for help. Our job (Realtors) is to connect with as many people in the community as possible generally speaking we have a lot of referral partners. Good luck!