All Forum Posts by: Tarik Turner

Its probably a non QM loan. Also hard to decide on how good the offer is without knowing other variables.

(Such as credit score, purchase price, LTV, Location)

Have you looked into conventional loans yet?

It depends on the type of lender you decide to work with. There is really no standard criteria across the board. Conventional banks will take a look at personal income and DTI while non qm lenders tend to base the loan on the asset itself along with your personal credit

It's a small loan amount but you should look into a fix and flip loan product. 

They are typically 12 month terms with higher interest rates but you can get around 75% to 90% of the purchase and 100% of the rehab costs depending on the lender. If you don't plan on selling the property you can always cash out refi on the back end based on the ARV. Just be sure to know which lender you will refi with and have an idea of their seasoning period

Whats the reasoning for using HML for the initial purchase? Why not use a portfolio lender who can offer 30 year mortgages

That loan amount might be too small for most Hard Money Lenders.

Unless the property needs some rehab that would increase that loan amount it may be a rough searching process

Where is the hotel located?

You will be able to find lenders who can offer a cash out refi for a property held in an LLC, but It also sounds like you might be trying to refi fairly quickly. Most lenders will have a seasoning period of 6-12 months, you might want to take that into consideration as well

That 4.25% is excellent considering its a STR

Each lender is different, there has been some restrictions placed on commercial lending due to the pandemic, however many lenders have eased those restrictions. If you continue having issues with your local banks try a non QM commercial lender

Most HML are non reporting so you should be good to go!!