Proper property insurance is a critical requirement for DSCR Lenders. While the primary risk evaluated by DSCR Lenders is the risk of borrower default, i.e. failure to make payments of interest and principal on the loan, the biggest risk facing a DSCR Lender is different. In the case of default, ...
Most hard money comparisons focus on interest rate, points, LTC, and ARV. But a cheaper loan can become expensive fast if every draw requires a slow inspection, reimbursement takes a week, or unused funds can’t be moved between budget categories. Would you accept slightly worse pricing for: faste...
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...
Hi - wanted to share this research for anyone looking into purchasing a condo for an investment property - plenty of "pitfalls" that could make financing hard or even impossible outside of say a shady or high-price hard money or private money lender: Chart: What Could Make a Condo Ineligible for ...
The title says it all.... I have heard rumors but none of my lending channels or contacts offer this for a refi. I know there are lenders that will offer 85% LTV on a DSCR purchase, but does anyone offer this for a Refinance? The property in question checks all the boxes, we have an appraisal on ...
I tried to get a home loan with my past 2yrs 1040s but since im 1099 and did a whole bunch of writeoffs prior looking for a home, broker said my only option now is bank statement or 1099 loan, he explained how the 1099 route is much simpler as with bank statements its a lot of paper work and can ...
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?
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...
Hey everyone, I’m a Los Angeles-based real estate investor and founder of Gather West (real estate acquisitions and holdings). I currently own and manage multifamily properties here in Southern California and expanding into out-of-state acquisitions focused on value-add renovations and long-term ...
I am deciding between using a HELOC or private/hard money to fund my first flip. The HELOC has more than enough room, but I would like to really examine the alternatives closely. Excellent credit. Is there an organization that has done the hard work of comparing flip-lending products side by side...
I keep seeing loans advertised as covering 100% of the rehab. But then the actual process is: You pay the contractor and materials. The work gets completed. The lender inspects it. Then you get reimbursed. That may still be a good loan, but it doesn’t exactly remove the need for cash. A $70K reha...
I usually think of lender conditions as one more obstacle. Another inspection. More reserves. A lower ARV. Repairs that need to happen before closing. But the lender is also one of the only people in the deal who has no reason to fall in love with the property. Has a lender ever rejected a deal o...
I’m curious how people handle this once they’ve done a few deals. Say your usual lender has been reliable, answers quickly, and already knows how you operate. Then another lender comes in a little cheaper on the next deal. Are you switching for the better terms every time, or is there a point whe...
I was talking with an investor recently and asked how the market was treating him. I expected him to say finding deals was the challenge. Instead, he said, "I'm actually finding plenty of deals. I'm just passing on more of them than ever before." His reasoning was simple: he'd rather do fewer dea...
I had an interesting conversation with an investor recently about something I think a lot of people wrestle with. He had enough cash to put significantly more money into a deal and reduce his borrowing costs. But his response was basically, “Then what happens when the next deal shows up?” That st...
Any recommendations? My plan is to purchase 3 to 4 new construction single family homes or 3 to 4 new construction townhomes, ideally in the Atlanta area. They may end up being under an HOA. I'm selling a property to do a 1031 exchange and this money will be the downpayment for the purchase of a ...
Hello, I’m going to be closing on my first SFR investment property soon via an all cash deal. After closing I’d like to do a delayed finance to use the cash for a second property. The property is in Memphis TN. I am open to any lender recommendations from those that have done the same. My thought...
Looking for some advice from experienced private money lenders , borrowers and investors. I’m raising funding for a fix-and-flip deal. The property is already being financed by a hard money lender. I found a potential private lender, but after reviewing the structure, he decided not to move forwa...
How are other small private lenders handling draw requests without a dedicated draw team? The pattern I keep running into, talking to lenders with a handful of rehab loans: draw requests are the one part of servicing that doesn't scale down cleanly. A bank has a whole draw department. A solo lend...
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...
That's usually the wrong question. The better question is: Which financing structure fits the transaction? Primary residence ? QM residential financing may be the logical starting point. Non-owner-occupied rental ? DSCR may be worth evaluating. Investors with complex income ? DSCR can provide a d...
FICO score is determined by assessing credit data in the following five weighted categories: payment history (35%), credit utilization (30%), length of borrower credit history (15%), types of credit in use (10%) and new credit accounts (10%). While these aspects and details are also used in the q...
Most Ridiculous Excuses by Borrowers for Missing Payments “I was out of town” - apparently, unbeknownst to myself, mail, telephone, text, email and bank transfer only work when borrower is in his home city. “I thought I was going to be able to get a new loan” - I guess the act of thinking about r...
There's no “best” financing option for every investor. Conventional financing may work well for long-term holds, while private financing can make sense for projects where speed, flexibility, or renovations are important. The key is to consider financing before you make the offer. What financing s...
I'm a private lender looking to branch out in Northwest Indiana (never done a deal in IN before). Woukd anyone be willing to chat about or share some ideas about how much to charge for purchase and renovation loans on single family homes in the area? I know there are many, many details that come ...