Who is your favorite 100% LTC 100% rehab lender for experienced operators?
Investor · FL · Member since 2017 · 134 posts · 66 votes
Who is your favorite 100% LTC 100% rehab lender for experienced operators?
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I know of 3, 2 that I work with the most for my clients, but what I have found is the inherent issues that come with them.
There tend to be two big issues with 100/100 lenders that I have seen, the first is working with/being a borrower that is okay with the heavier lift that these types of lenders require. For a group like this, even with experienced investors, you have to prove that you have that experience which can take some time, and on top of that they tend to need a certain experience threshold within a certain period of time (usually 3-5 years). Those factors, plus the work needed to underwrite something like that, tend to make them trickier than say, a 90%/100% lender.
The second thing is ensuring that the values that they are operating under will work with 100% financing. Most 100% lenders will lend at 100% UP TO 70% ARV, which is tough to secure. Not only are those deals tricky, but you also need an appraiser to agree with the values needed to make a deal work, which, lets be honest, can be a bit of a crap shoot.
I know of a few doing it, but preparing yourself for the work of getting it is usually tricky.
Otherwise, **Following** to see if there are any others out there that I don't know
4 Replies
I know of 3, 2 that I work with the most for my clients, but what I have found is the inherent issues that come with them.
There tend to be two big issues with 100/100 lenders that I have seen, the first is working with/being a borrower that is okay with the heavier lift that these types of lenders require. For a group like this, even with experienced investors, you have to prove that you have that experience which can take some time, and on top of that they tend to need a certain experience threshold within a certain period of time (usually 3-5 years). Those factors, plus the work needed to underwrite something like that, tend to make them trickier than say, a 90%/100% lender.
The second thing is ensuring that the values that they are operating under will work with 100% financing. Most 100% lenders will lend at 100% UP TO 70% ARV, which is tough to secure. Not only are those deals tricky, but you also need an appraiser to agree with the values needed to make a deal work, which, lets be honest, can be a bit of a crap shoot.
I know of a few doing it, but preparing yourself for the work of getting it is usually tricky.
Otherwise, **Following** to see if there are any others out there that I don't know
- 2yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @AJ Exner:
I know of 3, 2 that I work with the most for my clients, but what I have found is the inherent issues that come with them.
There tend to be two big issues with 100/100 lenders that I have seen, the first is working with/being a borrower that is okay with the heavier lift that these types of lenders require. For a group like this, even with experienced investors, you have to prove that you have that experience which can take some time, and on top of that they tend to need a certain experience threshold within a certain period of time (usually 3-5 years). Those factors, plus the work needed to underwrite something like that, tend to make them trickier than say, a 90%/100% lender.
The second thing is ensuring that the values that they are operating under will work with 100% financing. Most 100% lenders will lend at 100% UP TO 70% ARV, which is tough to secure. Not only are those deals tricky, but you also need an appraiser to agree with the values needed to make a deal work, which, lets be honest, can be a bit of a crap shoot.
I know of a few doing it, but preparing yourself for the work of getting it is usually tricky.
Otherwise, **Following** to see if there are any others out there that I don't know
What rates and points are you getting on a 100% deal?
LuxePrivate Investments LLC 572 Reviews Quote from @Erik Estrada:
Quote from @AJ Exner:
I know of 3, 2 that I work with the most for my clients, but what I have found is the inherent issues that come with them.
There tend to be two big issues with 100/100 lenders that I have seen, the first is working with/being a borrower that is okay with the heavier lift that these types of lenders require. For a group like this, even with experienced investors, you have to prove that you have that experience which can take some time, and on top of that they tend to need a certain experience threshold within a certain period of time (usually 3-5 years). Those factors, plus the work needed to underwrite something like that, tend to make them trickier than say, a 90%/100% lender.
The second thing is ensuring that the values that they are operating under will work with 100% financing. Most 100% lenders will lend at 100% UP TO 70% ARV, which is tough to secure. Not only are those deals tricky, but you also need an appraiser to agree with the values needed to make a deal work, which, lets be honest, can be a bit of a crap shoot.
I know of a few doing it, but preparing yourself for the work of getting it is usually tricky.
Otherwise, **Following** to see if there are any others out there that I don't know
What rates and points are you getting on a 100% deal?
It depends on the program, the two that I am most familiar with will do 100/100 at 70% ARV but will underwrite pretty heavily and will treat it almost along the lines of a non-QM lenders and might even underwrite the builder/GC. Plus, they are picky on what regions that work in, which is another layer to look into.
The second group, with the right experience, does 10.5%-11.5% Interest only for 90%, and if the values come back in their valuation, will do a second on the down payment at about 17% IO so it balances out at 100% LTC.
Its pricey in both time and money, which is why I usually express my hesitation to my clients with these programs because many people are willing, but are not able.
- Member since 2024 · 4 posts · 0 votes2y
I know 90ltc 100% rehab no credit check no upfront fees or appraisals would love to connect
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