For investors who have used private money, what factors made you choose private financing instead of a traditional bank or other financing option? Was it primarily: • Speed of financing • More flexible deal structures • Property-focused underwriting • A time-sensitive acquisition • Difficulty qua...
I’ve noticed that DSCR rates are much cheaper than conventional rates right now. It’s still possible to get a DSCR loan at 6.5%, while conventional investment property rates are at a minimum of 7.5%.
In this BP interview, Nathan said he uses a business line of credit to purchase his properties. https://www.biggerpockets.com/blog/deal-diary-nathan-nicholson?utm_campaign=InvestorBrief&utm_medium=email&utm_source=lterable&utm_channel=28425&utm_content=Marketing&user_id= "Every time I pay a prope...
Hello, I was sold on this idea and I’m looking to find out how common or possible creative financing is. Does anyone have experience do creative financing? Please let me know
I was going back and forth with someone about this today and thought it was a good question for the group. Say you’re getting a $250K DSCR loan and have two options: 7.25% with no points Payment is about $1,705 or 6.75% with 1.25 points ($3,125) Payment is about $1,621 So you’re paying $3,125 upf...
I'm getting conflicting advice from lenders whether i can have two second home mortgages in the same city. If both are used for primary use and rental use, is it possible? Fannie Mae doesn't have a blanket mileage limitation so it may be lender underwriting specific requirement? I'm looking to pu...
Has anyone had experience getting a loan on an investment property under $65k? I’m looking at a rental property in Tennessee for around $50k. It doesn’t need much work to become rent-ready, but I’m having trouble finding lenders willing to finance a loan that small. If you’ve successfully finance...
Most investors only compare interest rates. But the rate is just part of the story. Here's what to know before you sign: 1. Points add up fast. 2 points on a $250K loan is $5,000 due at closing. Compare total cost, not just the rate. 2. Rehab money comes in draws. Lenders reimburse you after work...
I'm wrapping up a rehab project and found something I'm interested in however my funds are tied up in the correct project. Do all DSCR loans with no seasoning requirement lend on the purchase price vs a new appraised value?
I’m a lender, so I probably shouldn’t say this: the lowest rate isn’t always the cheapest money. Suppose I’m buying a property and I have two financing options. One lender is at 7.25%. The other is at 6.75%. Same loan amount, roughly similar terms. Half a point cheaper? Easy decision. Except the ...
I came across an investor refinancing a duplex in Tucson with a loyal tenant who had been there six years. She never raised the rent much, so the lease sat about 300 dollars a month under what the place would fetch today. She ran her numbers on market rent and figured the cash out was in the bag....
Had an interesting one recently. Buyer was purchasing an investment property directly from his neighbor. No Realtors involved. Buyer and seller knew each other and decided to use a title/closing attorney to handle the transaction, which kept the transaction costs pretty low. Here's where it got i...
Any recommendations? I'm a disabled vet. A small hard-money lender looking to foreclose on a wacky weed farm in Pueblo. And a foreclosure lawyer to foreclose on two lots in Monroe County, FL. Florida. 2 lots. I'm tired of lies and excuses from the borrower. Also, with a personal guarantee, notes,...
A borrower comes in with money. Good liquidity. Good credit. Experience. Plenty of skin in the game. Everybody relaxes a little. The lender feels better. The borrower feels better. Now we're discussing LTV, rate, points, reserves, term. And somewhere in all that financial sophistication, there's ...
Hey everyone, I’m Zach. I’m with Triple Crown Capital Group, a Texas-based hard money lender, and I’m new to BiggerPockets. I wanted to introduce myself, but more importantly, I wanted to hear from the investors on here. For those of you actively buying or working on deals in Texas, what’s been t...
That line stuck with me. He wasn't saying rate didn't matter. It absolutely did. His point was that when he's under contract on a good deal, knowing the financing will actually perform is sometimes worth more than saving a little on the rate. He'd rather know the terms upfront, know what's expect...
I had a conversation recently with an investor who was analyzing a property and already had the purchase price, rehab budget, ARV and expected rent figured out. Then we got to financing. That was the one piece he hadn't really mapped out yet. It reminded me how often investors spend weeks hunting...
Hi Question? How do I or what is the best why to raise private money to invest or use as a down payment for rentals? Thanks Frank
A good property doesn't automatically mean an easy loan. A strong borrower doesn't automatically mean every lender will say yes. And the lowest interest rate isn't always the best financing structure. I'm building my practice around commercial and investment real estate financing, and I'm going t...
Hi Everyone! My siblings and I are purchasing a rental property together through an LLC and currently are talking to a national bank. They let me know that closing would take around 45-60 days. Is this normal? And if anyone has any good recommendations for DSCR lenders in Cleveland that can poten...
Are we talking 1–2 hours total, 5 hours, 10+? And what usually pulls you back in --> is it borrower questions, UW issues, rate/structure changes, realtor communication? Also, do you contact the raw leads from bankrate etc or is there a call center / AI dialer that transfers only warm leads to you?
Ran the numbers on a four-condo package recently and it turned into a clean example of how much one line item can move a DSCR. Curious how the lenders and landlords here handle it. The package: four individually deeded units in the same complex, offered together at $345,000. Three occupied, one t...
For investors who have grown their real estate businesses beyond a few properties, what type of financing has helped you scale the most? I’d be interested to hear about your experience with conventional loans, private money, hard money, DSCR loans, bridge loans, commercial financing, or other fun...
Hello everybody. I'm looking at properties in Kentucky and Tennessee currently for LTR. I am looking to compare DSCR and conventional loan rates to see where I can get the best deal overall. My max purchase price will be $400,000, my FICO score is around 720 and Experian VantageScore is around 76...
For DSCR Loans secured by a property in a Special Flood Hazard Area (SFHA) — designated Flood Zone A or V—DSCR Lenders will require flood insurance as a loan condition. These zones represent areas at high risk of flooding and are identified in FEMA’s Flood Insurance Rate Maps (FIRMs). This requir...