BRRRR Deal Albany New York

2 Replies

Hi Kyle, 

Are you planning to buy in your own name or in an LLC?

If in an LLC, I can recommend Sunmark FCU's commercial lending department. There is no seasoning period with them. You just have to make sure that your property is rented and meets the 1.2 debt service coverage ratio with the rental income it brings before you apply for the refi.

I am assuming you are planning to buy with your own cash or some form of short term private financing. If, on the other hand, you are planning to use a bank and the property needs a lot of work, you may have a harder time. There are banks that will make construction loans, but the terms and the bank’s oversight over the project will be a hassle. Be ready to Front money to pay your contractors as you go and then wait for the bank to penny-pinch over every single expense before giving you your draw.

Vitaliy

Vitaliy, 

It is a cash purchase and rehab. The property was purchased under personal name but we are planning to go with an LLC with partners. If doing so prior to "re-fi" would open up better financing options it seems to be the best choice as we plan to rinse and repeat of coarse.

The 1.2 Debt service ratio is the same as DCR ?