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...
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...
Hi all, Rob here, a Louisville agent who works mostly with investors. Most deals I see die on the financing, not the property. Here's how I match the money to the deal. Buying a rental and your W-2 doesn't tell the whole story: a DSCR loan, debt service coverage ratio. The lender qualifies the bu...
Theres this investor in Sacramento that owns a duplex with a rate he locked years ago, and a great deal lands in his lap that needs about $60K fast! His first instinct is to do a Cash out refi which would mean swapping that rate for today’s rate on the whole balance. He was ready to burn the brid...
If you plan to buy a rental in an LLC, a few things need to line up before you apply Form the LLC first. The purchase contract, the loan, and the insurance policy should all carry the same name, and changing it midway can delay closing. Expect a personal guarantee. Most lenders will lend to an LL...
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...
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...
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 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 ...
What's included? What are the fees? What's the term? What happens if the project takes longer than expected? What's one question you always ask a lender before signing?
Here's something I've been wondering about. A restaurant can serve excellent food, have loyal customers, employ twenty people, and make a healthy profit year after year. Yet getting a substantial business loan can be surprisingly difficult. Meanwhile, the building housing that restaurant might qu...
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...
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...
Conventional is hard to beat when the file fits. Good rate. Good terms. Usually no prepay. I’m not going Non-QM just for the sake of going Non-QM. But this is where I think investors need to stop looking at rate only. Take a 2-4 unit investment property. Conventional financing is generally going ...
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...
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 ...
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...
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%.
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...
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...
For real estate investors, choosing the right financing strategy can make a significant difference in how a deal comes together. Traditional bank loans may offer established terms and structures, while private money financing may provide different approaches to evaluating the property, deal struc...
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....
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 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...