There’s a lot of information online about real estate financing, but the terminology alone can be overwhelming. LTV. LTC. ARV. Points. Draws. Term. Exit strategy. For experienced investors, these are familiar concepts. For someone entering their first project, they can feel like another language....
I own two fourplexes in Enterprise, AL (8 units total), held for about 10 years. They’re worth roughly $500K combined, with about $105K owed at 3.2% and 4.2%. They’re fully rented and professionally managed. My goals: Keep both first mortgages. Those rates are too good to give up. Qualify on the ...
Question for the private and rehab lenders here. After over 20 years of renovations and turns, I've seen draws go out on a contractor's say-so, a few photos and trust. A recent thread here made a point I keep coming back to: proof of work and proof of payment are two different things. The work ca...
Sharing how we set up gap funding on our Atlanta flips, since I get asked about the structure a lot. Our primary lender covers most of the purchase and the rehab budget. What's left — the down payment gap and closing costs — is usually $35,000 to $45,000 per property. That piece comes from a priv...
We sold a fixer upper mobile home on payments a year and a half ago. It's going great and we love this strategy. But about six months ago, the homeowner's insurance was canceled due to underwriting issues and some repairs not being completed on the home. The borrower asked us if she could be rele...
Something I've been thinking about while connecting with investors, operators and private lending partners is how often we get caught looking at an opportunity through a sniper scope when sometimes we ought to be using our iron sights. Hear me out. We've got investors comparing points, interest r...
Kansas City investor here, introducing myself to this side of the forum. I've completed 7 projects in the last 3 years, mostly renovations and BRRRR holds, and I'm at the stage where the quality of my lender relationships matters more than the quantity of deals I chase. I'm structuring my buys mo...
Hi Guys. I am finishing a three-apartment unit renovation, and I am starting to look for a lender to refinance it long-term. Any suggestions for companies you had a good experience with? Can be brokers, banks, etc.? Are there any lenders charging less than 7%? I would appreciate any help and guid...
A rental, a ground-up construction project, and a fix-and-flip can have completely different financing needs. That’s why I think the better question isn’t: “What’s the best loan?” It’s: “What financing structure makes sense for this specific project?” The property, timeline, exit strategy, and in...
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 am looking for financial advice. My wife and I recently sold our first flip and are looking to buy a forever home. The home we are looking at is in rough shape and will only accept cash offers. We are looking at offering 260k. We are able to contribute 100K leaving us with money to rehab after ...
I have a rental property that I am looking into refinancing. It is a duplex, and presently at 7.8% rate. I am hoping to lower my rate, and get some cash out. It is presently on conventional loan and title is on my name. I am looking at refinancing into DSCR or another conventional but looking to ...
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...
Good afternoon BP community. I am looking to start my investments in to PML. Has anyone invested with or had dealings with the Fi Couple, who are PML facilitating company.
I am a mortgage broker and I have an Arizona client who is looking to finance a PadSplit. Does anyone have experience with these kinds of properties? Any lenders that are PadSplit friendly? Following up with specifics. Looking for DSCR lenders that will close on a turnkey rent-by-the-room PadSpli...
When bringing private capital into a deal, operators seem split right down the middle. Some strictly borrow on a promissory note at a flat interest rate (say 10% to 12% annualized). If the project sits on the market an extra two months or has minor hiccups, the interest meter keeps running, but i...
adapted from my dscr loans guide - more relvant now than ever with the crazy rates right now See a lot of "what are DSCR rates right now?" posts on here, and the honest answer is it depends a LOT on how you structure the loan - theres no single rate even for the same borrower on the same property...
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....
Disclosure up front: I run CR Equity AI, a lender (NMLS 2797309). Details are anonymized. This is for education, not a sales pitch. We recently worked on a DSCR portfolio loan for roughly 175 rental units spread across about 150 properties. Most are in one West Texas metro, with a handful in smal...
I've been working on a refinance for a BRRRR in Indiana with a broker for the past couple months. I had the ARV estimated at $130k, with a loan amount of $97.5k. I had my rate locked at 7.375%. I got a call from the broker today that we need to go with a different lender because he had apparently...
Hello all, my current portfolio is 6 single family, 1 duplex, and 1 triplex. I’m looking for a lender in Ohio (open to other locations as well) that will possibly do a blanket/portfolio cash out refi covering all these properties in a 30 year fixed rate. Has anyone done something similar and have...
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...
The appraisal is usually the first real money you spend with a lender, and it's mostly non-refundable. So the time to find a problem with the loan is before you pay for it, not after. Here's what I'd read for on any fix and flip or bridge term sheet. What the leverage is based on. "Up to 90%" mea...
I'm interested in hearing from investors who have used private money financing to purchase and renovate investment properties. For those who have completed fix-and-flip projects using private lenders: Did your financing cover both the purchase price and renovation costs, or did you need to bring ...
Some houses come with a loan attached that no bank will ever write again. A 2.75% loan. A 3% loan. Sitting inside a house that's for sale right now, and the next buyer can take it over. When I ran our MLS, 26 active listings in Kentucky were flagged assumable. Out of roughly 4,500. Then I searche...