All Forum Posts by: Weston O'Dell

Hey Bradyn, congrats on your success thus far! As mentioned above, the DSCR route is a great next option for you. There are many great lenders out there who you can use to both acquire and refinance as necessary going forward. Underwriting is asset-based from the income perspective. Meaning, that the rents (or market rents) will need to cover the payment +tax/insurance/HOA of the subject property. Vesting generally will need to be in an entity and the new mortgage will not report as a tradeline under your personal credit. Keep in mind, personal credit score does play into the pricing of these DSCR loans so make sure to keep your score solid! There also is no cap on the number of these loans you can obtain.

Your alternative option to institutional DSCR loans would be in-house commercial loans with banks/credit unions. You can expect each bank to have differing appetites for investment properties so make sure you chat with a few. These loans are generally shorter amortizations (15-25) with fixed rates for 3-7 years. I think it is a great approach to look at both DSCR loans as well as bank commercial loans and place each deal with the option that fits your property/situation at that time. Best of luck as you continue to the next level!

Arijit, 

Congrats on the deal, sounds like a great asset to add to the portfolio. You really have a couple routes to go with the scenario. Either, proceed with a value add approach and structure a refi/rehab short term loan that provides renovation funds in order to reposition the property and push rents. Then you can refinance into long term debt once stabilized and get a true value look. Seasoning on this can be done <12 months so long as work has been completed. Alternatively, you could move straight into a longer term program that will essentially structure the deal as a "delayed purchase" and underwrite in place DSCR/occupancy. This route will be limited to original purchase price as value basis and will be capped at 75-80%. This also will have some form of prepayment penalty associated. Both are great options, let us know how you proceed!

Naor,

There are many financing options in the private sector that may be worth exploring. From my experience, rates will be higher then conventional financing. However, more flexible options become available. Most investors in my network look to refinance to ARV at 90 days with a few options available at 30 days. Might be worth your time to explore financing options outside of fannie or freddie.