Hi Eric, I have a loan with them on a SFR owned by my retirement account, had good experience and have been recommending them and know that some of our clients have used them with good experience as well.
I have loans with them. The process went smooth and Jason Zook was very helpful. Rates are very competitive as well. Their book Leverage Your IRA by Matthew M. Allen is also very helpful.
@Dmitriy Fomichenko@William Morrison I'm finishing up a current rental project, and then my next project will be doing this very thing! What %LTV did you get from them? On their site it says 70% purchase price or 50% LTV, whichever is lower. That sounds like pretty much 50% to me, but I've heard 70%LTV was possible... would be great to hear from actual clients.
Are closing costs about the same for these sorts of loans?
Also, any anecdotes about First Western? That's the only other bank I've tracked down that does non-recourse.
@Gabe C. Jason will send you the current rates. You will find then very reasonable and the whole product is basically a commercial loan because it is a Non Recourse Loan. The closing cost were in line with properties I have outside of my 401k. Your LTV loan will be based not just on the rental property but more of a business model. The loan is based on the 401k or an IRA and not you or assets outside those resources. Thus your reserve in the 401k, the rental history and lease as well as the street market appeal of the property. I have contacted several lenders. Some reasonable and some just seem to be waiting for you to only check one, "them". And in that case some talk a nice game but have rates closer to hard money. Try not to laugh while talking to them. I'm talking 2 to 3% higher than what's competitive.
If your rents are lower on nicer properties you might find your up from 70% to 60%. You may also find with competitive rates that the 60% loan is cheaper than others 70% rates. I did.