All Forum Posts by: Account Closed

@Ann Campbell, what state is the land in? How much is the purchase price? What is your next plan to the land?

@Maricruz Medina What kind of investing? Buying single family or multifamily for renting? How much loan are you looking for?

@Matt Privette, for new construction loan, depending on your experience and credit score, lenders can do up to 90% LTC (C is cost including land value, construction costs), but not exceeding 75% LTV ( V is the value after building). Interest rate varies from 8%-10%, with 2-3 points of origination fee, 12 months term, interest only payment.

@Ryan Keenan, 6 months.

@Ryan Keenan, If you are buying properties in a livable condition and tenants in place, you can buy 10+ in one loan. No personal DTI requirement, all depends on the cash flow of the properties. If you want to do fix and then keep as rental, we also have a program to connect the two loans (fix and flip loan, long-term fixed loan) without a seasoning requirement. This program can only do one property at a time.

@Joe Jackson What are the purchase prices, estimated rehab cost, and ARV of the property? If the rehab cost is not very high, I would say a hard money loan would be a best fit for this project. Lenders can do up to 90% of the purchase price plus 100% of the rehab, but not exceeding 75% of the ARV. Interest rate ~10% but no prepayment penalty. If you finish the project in 2 months, you essentially just pay 2 months' interest.

@Hunter Jones, with such good cash flowing properties, you should be able to get a commercial loan for $140k for 7 duplex's. Commercial loan looks at the profitability of the property first, then your credit score and experience level. New investor ok, but just slightly higher interest rate. Right now, you are looking at 5-6% for 30-year fixed with 2-3 points. You can plug in the numbers to do another underwriting to see how the number works now.

No income proof and tax returns needed for commercial loans.

@Jackson Walker, if you plan to fix it up and use it as an investment property or sell it, a fix and flip loan should work for you. May I ask what is the as-is value and what is the value after repairs? Is there a mortgage on the property?

@Mark Larson, you said you don't have W2. But not sure if you have other income proof to qualify for the conventional financing. If not, commercial financing would be good choice for this deal. You can do it in one loan. Do you know the market rent? I imagine if the average rent per unit is greater than $500 and you have 650+ credit score, you should easily qualify. 

From lender's point of view, NOI is the money available to service the loan. And this relates to another term DSCR ( Debt service coverage ratio). DSCR = NOI / P&I. For residential investment property, lenders require DSCR > 1.1. For commercial properties, most lenders require DSCR > 1.25.