Fact: When banks securitize notes, they can make up to 40x the amount of alleged loan.

Definitely focusing on offmarket or even on market multifamily homes (minimum 4 units). started off in real estate development last 2 years but the paydays are brutal building then waiting to sell.So now looking to switch up strategies to purchase cashflowing properties and then get back to ground up construction or even possible fix and flips. 

But for large multi-family, that amount hardly covers your legal fees for one transaction, let alone down payment, due diligence costs, lender fees, other closing costs, etc.

They’re requesting what feels like an unreasonable amount of information, and the demands keep escalating.So far, they’ve asked for:A video tour of my home officeCredit checks on me and my partnerCopies of the deeds for every property we ownA copy of my partner’s home lease and utility billsBusiness phone billsA signed letter from the bank verifying our accountsBank statementsHonestly, it feels more like qualifying for a loan than trying to become a customer.

We have a lot of fix and flippers who are really looking to scale, and understand that access to capital is their limiting factor.

Purchase price of the home is $800k.Option 1Conventional loan20% down: $160kPoints: 0Cash to close: $170,092Rate: 6.875%PMI: $0PITI: $5004Loan Amount: $640kOption 2FHA loan10.625% down: $85kPoints: 2.5Cash to close: $120,455PMI: $296.30PITI + PMI: $5,537Loan Amount: $715kWith option one, I am bringing ~$50k more to the table, but my monthly payment is $500 less and my loan amount is $75k less.

Run the numbers using commercial 25% down and Fixed P/I of x.x% with 5 year balloon and 25-year amort. 

Also, many PadSplit properties have bedrooms that are created via flex walls that wouldn't meet the definition of a bedroom in an appraisal, so many PadSplit owners may think their property is worth a certain a mount based on a bed count that's not valid. 

these issues are easily fixed by just putting more cash into them up front so your not having to feed them at the back end.. or better yet pay cash for them.  

Do you have an idea of the long-term rental amount, and would that be sufficient to meet the DSCR ratio needed to qualify for the loan?