All Forum Posts by: Wayne Doucet

Are you anticipating your buyers needing to get mortgages to purchase the individual properties, or are you doing some form of seller finance?

ALL great advice and information provided above! Here’s a bit of a synopsis:

1.  DSCRs and condos go hand in hand 
2.  Anything under 5 units will still be treated as residential single-family in terms of terms, rates, etc.
3. Before submitting an offer, contact the Condo association to understand whether the property is non-warrantable (will require Non-QM financing) or warrantable (Approved by Fannie/Freddie) as that will impact the rates and terms you’ll qualify for
4. Lenders consider all costs when calculating your DSCR so get a head start by asking the association for HOA fees as this can really impact your ratio. In strong rental markets, do not worry too much as there are lenders who will finance your loan even if your DSCR is under 1 (but for best terms - aim for 1+)
5. Typical LTV will be around a 70 - 75%. Anything higher and you're likely looking at less than optimal terms/rates

@Wayne Doucet Absolutely. Condos are eligible properties for DSCR programs. You'll want to find out in advance if the property is a warrantable or non-warrantable.

I am looking for a few people that have partnered with Kris Khron on Single Family. Would love to hear how it went/is going. I know this has been discussed in other posts but they seem to be full of opinions and not many people that have actually partnered.

Current partnership for one Single Family is approx 50k down payment, 10k partnership/management fee, 10k put in bank account for operating expenses. They find and manage the property. Profit split is 70% you 30% them. Target return is 25-35%. The plan is to sell every 4/5 years and reinvest to double your portfolio at that time.

So if you are doing this how is it going for you?

Thanks!