BP lenders listed in network

[John M.]

Has anyone used the lenders listed under the "network" tab above? There isn't many to choose from. I like that some are offering 80% ltv on dscr loans. Just wondering if anyone has any experience with them. I'm looking to finance a STR in SWFL in the near future.

Thanks.

[Kevin Woodard]

80% LTV exists but there are conditions that need to be met, making underwriting fairly intensive. If you are walking away with cash I would go with 75% LTV and save on rate.

Hope this helps.

[Jack Mawer]

John, due to the current market it is very tough to find 80% LTV, that is, without incurring excessive fees. Most shops are going up to 75% LTV. You have encountered lenders recently that are giving 80% LTV?

[Andrew Postell]

@John M. I mean, I want to support Bigger Pockets as best as I can but truthfully a local lender will likely be the best bet here. Or at least speaking with a fellow real estate investor in the market you are investing in about who good lenders are. I guess they don't have to be local, but getting a local reference is the best method. I know you are trying to do that through this forum but mostly Bigger Pockets is about general questions, or "how to" stuff...if you need a plumber, property manager, lawn company, lender, etc - go local first. If you aren't plugged in to any REI groups down there try to match up with some on their facebook pages. There will be lots of those. Always take another INVESTOR's reference - anybody can advertise or answer a group message. Hope all of that makes sense.

[Muhammad Amawi]

Hey John, I'm a lender up north in Ohio and will have a Florida license here soon as well as some pretty strong connections in that area. 

Let's connect so I can help with any lending questions you may have. I also have experience with the 80% LTV DSCR loans.

[Anastasia G.]

@John M. Hello and pleasure to meet you! Would be happy to assist! We help homebuyers become savvy real estate owners whether it is your first home or 20th investment property 🥷

[Edwin Epperson]

@John M.

If you are looking for an 80% DSCR lender, I'm happy to have a conversation with you. As a meter of transparency I do not lend my personal money on 30yr loans, only on 6-month interest-only loans, however I do broker out fixed rate 30yr loans and they are a DSCR product. We can jump on. acall real quick to discover what you needing and how I can be of any help.

[Dave Skow]

the lenders  underw the network tab  are the ones that  pay extra  dollars to  be on that page ....you can  certianly  contact them  with any questions  ....getting  referrals  from friends / collegues  /  co workers   is  a better way to  find a lender  ( IMO)

[Nick Belsky]

@John M.

Don't be fooled by some of these responses here. There is something to be said for an STR lender versus just asking for a DSCR loan. Most lender will see STR and immediately reduce your max LTV or will use market LTR rents to determine DSCR and knock down your LTV due to not reaching ratio requirements. Find a lender that is a true STR lender. For purchases, they will use AirDNA to forecast rent revenue, not LTR. Unfortunately, the market has finally caught up with most of the true STR lenders I know and they have shrunk away to 75LTV max on purchases now. There is still one I know but you have to have at least 1 year experience with at least 2 STR properties to get 80LTV, along with FICO and meeting ratios.

Happy Hunting.

Cheers!

[Chris Mason]

Quote from @Andrew Postell:

@John M. I mean, I want to support Bigger Pockets as best as I can but truthfully a local lender will likely be the best bet here. Or at least speaking with a fellow real estate investor in the market you are investing in about who good lenders are. I guess they don't have to be local, but getting a local reference is the best method. I know you are trying to do that through this forum but mostly Bigger Pockets is about general questions, or "how to" stuff...if you need a plumber, property manager, lawn company, lender, etc - go local first. If you aren't plugged in to any REI groups down there try to match up with some on their facebook pages. There will be lots of those. Always take another INVESTOR's reference - anybody can advertise or answer a group message. Hope all of that makes sense.

 I'm going to "pick on" Andrew here b/c he's a loan officer at a company listed there.

Andrew here, who knows his way around mortgages, specifically for real estate investors, (correct me if I'm wrong) probably isn't who is going to be picking up the phone if you click through the advertisement and call the 1-800 number for the company he works at.

Rather, it'll be someone in a call center, in who knows what state, maybe who knows their business, maybe not, maybe someone who was a barista in Feb 2020 who got hired into the mortgage industry in April 2020 to service the refi demand, who is just now learning how purchase transactions work, or maybe not, who knows.

But I know for a fact that I can see Andrew's phone number directly, and if I call Andrew, Andrew will pick up, and Andrew specifically knows his business (I have actually spoken with him :P ). 

There's a pie that is baked whenever a mortgage is done. It doesn't really get any bigger or smaller, but it's sliced up differently. The largest slice of that pie generally goes to who brought the business in the door. So if paid marketing brought the biz in the door, then the marketing department where the biggest slice goes, and that means what is left by necessity must go to someone who has no choice but to take those smaller table scrap sized pie slices. If it's a dime-a-dozen rate/term COVID refi for a w2 employee who owns a single house, has great credit, and has been on the job 2+ years, it probably makes zero difference (will neither help, nor harm, the borrower). The more complex things get compared to that "baseline," the more appealing it likely is (this is probabilities game) to work with someone that isn't forced to take the table scraps from a marketing department, because they're able to bring it in the door with things such as their competence, or other attributes/deliverables.

A company I once worked for was recently purchased by a big discount real estate brokerage, I stay in touch with my old colleagues (there's no bad blood or anything). We'll call them "ABC Realty," and "XYZ Home Loans"  as the company purchased. The folks that are that are the best at their jobs, are refusing entirely the massive influx of "ABC Realty" leads, those folks simply aren't interested in working for table scraps, they don't need to. Many of the "ABC Realty" realtors are attempting to bypass their self-sourced "ABC Realty" leads from being categorized as corporate leads, just so those particular loan officers at "XYZ Home Loans," whom they liked working with before the acquisition, are willing to work with those clients. We'll see how it all shakes out. :)

Good luck. :)