All Forum Posts by: Account Closed

Have you tried commercial loans? Commercial loans can lend to you based on the cash flow of the property. As long as you have decent credit score and the down payment money (25%), you should be able to qualify. No W2, paystub needed. The downside is that the interest rate is usually 2% higher than conventional residential mortgage.

When evaluating a fix and flip deal, rule of thumb of offer price is 70%*ARV-rehab. After 75% refinance to pay back the hard money loan which could be 90%*purchase price plus 100%*rehab, you should still have a little over 5%*ARV left as your profit.

Asking 1) how much % of purchase price, 2) how much % of rehab cost, 3) lender's point, 4) processing fee, 5) any prepayment penalty if the project is finished early.

There are commercial loans can finance rental properties without looking at your w2 and paystub. The commercial loan lenders look at the cash flow of the property. Usually as long as DSCR is greater than 1.2, the property qualifies for a commercial loan. The interest rate is around 5% for 30-year fixed, 75% LTV.

Banks will look at your credit score, your new construction experience ( or your GC's), and your liquidity to start the project.

The lenders to LLC is mainly commercial loans. The rates are higher than normal residential loans and are not restricted by Fannie/Freddie guidelines. The process is simple. What you need to do just create the LLC to hold the property before closing. The lender will handle the rest.

You can use a hard money loan to purchase and renovate the property. Once it is fixed, you can refinance into a long-term bank loan with the after repair value. But most banks requires a seasoning period 6+ months.

If you have good credit and good track record of experience, it should be possible to get 80% LTV, 85% is difficult.

Hard money loan for fix and flip is short-term loan, it lends you x% of the purchase price plus the y% of the renovation cost. It has 8-11% interest rate and usually charges 2-3 points. Most of the banks cannot help you on this. You need to look for the hard money lenders. Personal loan is for long-term, usually no renovation cost will be funded. rates are low 3s for primary homes. Most of the banks can help you on this.

For a relatively large apt complex, the important one is the sponsor or sponsor team who has apt investing experience and net worth approximately equal to the loan amount. Then you also need the financials for the trailing 12 months and current rolls.