All Forum Posts by: Account Closed

@Kenneth McCuistion That's really good. Happy that you found a partner to make this work.

@Kenneth McCuistion Are you open to a loan option with 20% down and low 5s rate? This is called DSCR loan which majorly underwrites the cash flow of the property. No income proof needed, no tax returns will be looked at.

@Seth Mceleney I guess you are looking for hard money lender to finance the $120k (25%), right? This would be extremely difficult for hard money lenders as hard money lenders are asset based and they need borrower to have equity injection. In addition, they need to be in first position lien, not behind the seller financing. Your case would be perfect for private money lender. They fund based on relationship with the borrower. If they trust the borrower and know it's a good deal, they will fund. I don't know any private money lenders, just give you a direction.

@Daniel Fang For this kind of deal (6-unit being considered commercial, buy from auction), it's better to get a business partner who has done similar thing unless you have done extensive research and know the whole process inside and out. Otherwise it will be very risky to you as 1) CRE values totally different from residential properties, financials, appraisal, etc; 2) property management also runs differently from one single residential rental; 3) auction buying has much more things involved than buying from regular market.

To get a loan, llc is necessary because it is commercial loan, lenders need to close to an entity. And it's also better for yourself, in case anything goes wrong, llc protect your personal asset.

Owner occupied 5+ unit is not an advantage unless you consider SBA loans. Because 5+ unit underwrites by rent income and expenses. If owner occupies one unit and not paying rent, the income decreases so as the value.

@Igor S. there are a couple REIA meetups that I go in Charlotte. The first two are in-person and the third one is online.

https://www.meetup.com/Charlot...

https://www.meetup.com/Charlot...

https://www.meetup.com/Hobby-M...

@Benjamin Serven Yes, you can use commercial loan to buy such a package of houses. LLC is better for you and for the lender. If you want the houses to be under your personal name, conventional mortgage would be a better option if you still can qualify.

Commercial loan can be 80% LTC for purchase and 75% LTV for refi.

@Tyshawn Best It is very common that a hard money lender can do both short-term loans and long-term loans. Both loans are closed to llc, not personal names. Bank loans typically need to follow Fannie Mae's requirement to close under personal name.

@Joel Zawko Do you have the past 12 months financial and the current rent roll of the building?

@Mark Hoag DSCR loan can be used for both purchase and refi. So you don't need to have one property.

@Yacine Rimmo The loan I mentioned is DSCR loan (underwritten with the cash flow of the property instead of your w2 history). After you have the tenants in and rent collected for more than 3 months, it can be refinanced based on the new appraised value.