All Forum Posts by: Account Closed

You can request a pre-approval from a hard money lender. Usually you need that to submit an offer. You can approach talk to a lender before you search for your ideal property. But the terms will be very general. Once you have the property under contract, the lender will ask more information about you, about the property and to give you more precise quote. Then you move forward to submit more documents and close.

If the seller can co-sign the loan, that might be possible. Lenders require borrowers to put down payment.

What is the reason that you look for some loan to split one property? I don't think any lender can be that creative because they can't foreclosure half of a property.

#1 and #2, you basically you need a construction loan to help you convert open floor to a 5-unit multifamily. After converting and filling in most of the units with tenants, you can refinance to a long-term loan. #3 is retail stores with steady income, so a long-term commercial loan would be ideal. 

For fix and flip hard money loans, you look at loan amount up to 90% of the purchase price plus up to 100% of rehab cost, depending on your credit and experience. The rates/points is around 8-10%, 2-3 points also depending on your credit and experience. First time flipper also can find a lender, although not easy.

Unemployment does not affect this. As long as you have the cash reserve for down payment and to start the project, it is fine. 

What size of Portfolio lending are you looking for? What is the purchase price of each property?

I guess you can close with your personal name first and then transfer to an LLC later? I am not very familiar with this process, a closing attorney should be better to answer this question.

Yes, definitely you can get fixed 25-30 year commercial loans for 2-4 units. But be aware of that <5 unit, it may still qualify for residential loan which is cheaper than commercial loan. But if you can't qualify, commercial loan is a good choice.

Using LLC to apply for a loan is commercial loan. Using your personal name is to apply conventional residential loan. Both types of loan can be used for residential properties purchase. Commercial loan is a little more expensive in terms of rates and points as it will NOT be sold to Fannie Mae/Freddic Mac as residential loan will do ultimately. That is why residential loan is always cheaper. If you can still qualify for a residential loan, I would say take it and close. After you close, you can transfer the property to an LLC. A closing attorney should be able to help you out.

8-unit multifamily should definitely go with commercial lending. Talk to some lenders to see how they deal with the seller financing, different lenders take care it differently.