New to BRRRR, looking for advice!

[Trenton Blackwood]

Hello!

I’m a new investor, recently purchased a home from the recent Oklahoma tax sale.

I’m rehabbing the home and partnered with a property management team to do that rehab.


My question is, after placing a renter, how would you recommend getting financing and from establishment would you recommend?

Any and all advice is welcome. Thank you!

[Eliott Elias]

Do you have a job? 2 years worth of income? These are questions banks are going to ask you to qualify. If you don't look good on paper I would start exploring non qualifying loans such as DSCR where the bank qualifies the property rather than the borrower

[Trenton Blackwood]

Quote from @Eliott Elias:

Do you have a job? 2 years worth of income? These are questions banks are going to ask you to qualify. If you don't look good on paper I would start exploring non qualifying loans such as DSCR where the bank qualifies the property rather than the borrower

I do have a job. I do not have 2 years worth of income saved, however.

Do you have an bank recommendations for DSCR loans?
 

[Eliott Elias]

Quote from @Trenton Blackwood:

Quote from @Eliott Elias:

Do you have a job? 2 years worth of income? These are questions banks are going to ask you to qualify. If you don't look good on paper I would start exploring non qualifying loans such as DSCR where the bank qualifies the property rather than the borrower

I do have a job. I do not have 2 years worth of income saved, however.

Do you have an bank recommendations for DSCR loans?
 

 I have a few in Texas I can hook you up with. They can do loans nationwide 

[Drew Sygit]

@Trenton Blackwood

Here's a few:

Alpha Funding Corp

Anchor Loans

Angel Oak Home Loans

Ark Home Loans

Canyon Investments

Level Up Capital

Castle Commercial Capital

Expand Capital Group

Fidelity Residential

Funk Financial & Consulting

Green Block Inc

Homelife International Mortgage

KAM Legacy

Kiavi

Moneyboots Capital

Lynk Capital

Mbanc

Next Bridge Funding

RCD Capital

RCN Capital

Temple View Capital Funding

The Hard Money Co

Zinc Financial

Citadel/Acra

Everest/Griffin Funding

Finance of America Commercial

Lima One Capital

CIVIC

CoreVest Finance

Shiloh Investors (broker)

Corelant

Constructed Loans

Cogo Capital

[Scott E.]

Quote from @Trenton Blackwood:

Quote from @Eliott Elias:

Do you have a job? 2 years worth of income? These are questions banks are going to ask you to qualify. If you don't look good on paper I would start exploring non qualifying loans such as DSCR where the bank qualifies the property rather than the borrower

I do have a job. I do not have 2 years worth of income saved, however.

Do you have an bank recommendations for DSCR loans?
 

 You don't need 2 years worth of income saved. What he was referring to is - Have you been employed by the same company or been working in the same industry as a W2 employee for the past 2 years?

[Tom O'Stasik]

Hi Trenton, I'm an investor and agent in Tulsa. I have some good local lenders. (consumer, commercial, or hard money) I'm happy to help, let me know if you'd like to connect. I actually just went through this for myself

[James McMurrey]

Trenton,

I work as a mortgage lender at a community bank in Oklahoma. 

I recommend cash out refinances after the rehabs are completed. That's what I typically do on my own investments. Depending on the deal structure, appraisal, and original loan, this option tends to give you cash in hand at closing to go buy another property. 

You can take advantage of Fannie Mae products for your first 9 properties (qualify in personal name instead of LLC, which means less documents and more favorable terms & rates). This means you can do up to a 75% LTV cash out refinance into a 30 year fixed rate mortgage. This tends to help with cashflow on rentals as 30 year notes have the smallest monthly payments.

Most lenders will be able to provide this for you. So who you pick is more about customer service and communication. So choosing a local lender is my advice. Feel free to shoot me a message if you want me to take a look at your numbers and exchange contact info. 

All the best,

James

[Mike Klarman]

We do DSCR loans all the time. Yes, the quickest way to pull some cash out and stabilize debt on the property is to refi into a 30 yr FRM. Most Lenders will have a seasoning requirement. Somewhere between 3 - 6 months. A DSCR loan will depend on your credit mostly and the ratio between the rent and the debt payment.

If you have any questions as far as the docs needed by the borrower or how the process goes feel free to reach out.  I do a dozen of these every month.

[Steven Foster Wilson]

Quote from @Trenton Blackwood:

Hello!

I’m a new investor, recently purchased a home from the recent Oklahoma tax sale.

I’m rehabbing the home and partnered with a property management team to do that rehab.


My question is, after placing a renter, how would you recommend getting financing and from establishment would you recommend?

Any and all advice is welcome. Thank you!

 I would start calling as many lenders as possible. The more info you get, the more you can negotiate terms and rates. I sometimes will call 10 in a week when I am trying to refinance or purchase a new property.