Looking for Florida Bank Lenders for LTR properties

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Looking for Florida Bank Lenders for LTR properties

Ari Steinman
Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes

Hi, 

I recently starting investing in FL in SFH and duplexes.

I reached out to 2-3 lenders in FL to see what financing options they have and I figured I'll try my luck here too to get more options.

I know it's hard to give a exact interest rate but you can give a best case scenario of the lending products you offer with todays rates.

I purchase my properties in an LLC. Homes that are in the 300-400 ARV range for buy and hold long term rentals.

Do you offer conventional loans or just investment loans? What is your min. DSCR? What is your current rate (If the borrower has a good credit) Are they Recourse or not and is there a pre payment penalty? Can I get supplement to the loan after we raise the rents?

Thank you!

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David Ramirez
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
3y

Hey @Ari Steinman, 

Get in touch with @Khaled Morad! He offers conventional and investing loans. 

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  • Zach Wain
    Scottsdale, AZ · Member since 2019 · 435 posts · 248 votes
    3y

    @Ari Steinman - if you are asking lenders for interest rates be sure to ask interest and discount points, because interest rate is 1/2 of the equation.  If I can get a 6% 30 yr fixed on a rental, that sounds great, until I tell you its $30,000 in discount points to buy the rate.  Rate + discount points!

    Any conventional loan in America is not allowed to close in a LLC. You must either close in your name or in the name of your trust. But, you can move title to your LLC immediately after closing. Fannie Mae is fine with this as long as you are the majority member of the LLC.

    What downpayment are you looking at?  If you want the best deal, rental properties with 25%-30% down are getting better financing terms than 15%-20% options. 

    Only DSCR loans will have PPP (prepayment penalties) and they range from 0-5 years depending on the lender and what you want. You can take a higher interest rate and select a 1 yr PPP for example. Or, maybe you want a lower rate and you are ok with a 3-4 yr PPP (which is too long IMO).

    I am not sure what you mean by "supplement" to the loan after you raise rents.  Can you explain?

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  • Ari Steinman
    OP
    Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes
    3y

    Thanks @Zach Wain !

    Yes- thanks for pointing that out- 100% true story!

    I thoughts most lenders wont let you transfer in onto an LLC after purchase?

    I'm looking at in the 25% down range.

    By supplement I meant that one lender told me that they are lending based on DSCR amount and they cant lend me the full 75% LTV right now based on current rates but since they see the potential in the raised rents I will get in a year they are willing to add more money to the loan then when they see the higher rents.

    0Reply
  • Zach Wain
    Scottsdale, AZ · Member since 2019 · 435 posts · 248 votes
    3y

    @ari - sure thing.  Raised rates, I have not seen that from my lenders.  That type of presumption about the future can get a little dicey, I am surprised anyone wants to assume what rents will be in 1 year.

    For the LLC item, here is the quote from the Fannie Mae selling guide "A transfer of the property (or, if the borrower is an inter vivos revocable trust, a transfer of a beneficial interest in the trust) to a limited liability company (LLC), provided that

    • the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and
    • the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence)."
    0Reply
  • Ari Steinman
    OP
    Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes
    3y

    The one year raised rents presumption is only bec the tenants currently in the duplex are paying way under market rent(30%) 

    Regarding the LLC rule- Nice, interesting. Thanks for quoting that out for me.

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    3y

    @Ari Steinman feel free to reach out with any questions. Happy to assist. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    3y

    If you are looking for an awesome realtor in the SW Florida area, definitely reach out to @Kevin Bartlett

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    1Reply
  • Ari Steinman
    OP
    Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes
    3y

    Thank you @Raymond J. Rodrigues I appreciate that!

    I am currently working with a local broker but I'm happy to take advice from anyone offering :-) 

    But can I hear about your investors mortgage options?

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    3y

    Too much information for a post. Feel free to reach out via my contact info. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5119 Reviews
    WebsiteView Page
    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 679 votes
    3y

    Hey Ari, there is a plethora of options you have down here in Florida with some really great DSCR lenders would be happy to help send a PM

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    0Reply
  • David Ramirez
    Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    Hey @Ari Steinman, 

    Get in touch with @Khaled Morad! He offers conventional and investing loans. 

    2Reply
  • Kevin Bartlett
    Realtor · Member since 2023 · 177 posts · 41 votes
    3y
    Quote from @Ari Steinman:

    Thank you @Raymond J. Rodrigues I appreciate that!

    I am currently working with a local broker but I'm happy to take advice from anyone offering :-) 

    But can I hear about your investors mortgage options?

     Hey Ari, happy to connect anytime even just for advice. Thank you for the mention, @Raymond J. Rodrigues! If you want to message me we can always chat! 

    0Reply
  • Ari Steinman
    OP
    Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes
    3y

    Thank you @Raymond J. Rodrigues and @Devin Peterson I will reach out.

    0Reply
  • Ari Steinman
    OP
    Investor · Chestnut Ridge, NY · Member since 2023 · 27 posts · 4 votes
    3y

    Thanks @Kevin Bartlett I appreciate that! I will reach out.

    Thanks @David Ramirez for the contact!

    1Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    3y

    Thanks @David Ramirez

    Happy to help!

    0Reply
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