All Forum Posts by: AJ Exner

Hey Ron,

There are certainly some intricacies to being a foreign investor and working everything out.

Usually the first two questions are 1) What area are you looking to invest in? And 2) Do you have a qualifying US FICO score? There are options no matter how you answer those, but they will vary considerably on rates, terms, and leverages.

Good luck as you start your journey! Happy to help however I can!

Rural can certainly be tricky, especially knowing appraisal tendencies and leverage cuts on long term stuff.

Happy to connect and see if I can help!

Hey Dave,

Based out of Springfield so very familiar with the Branson market. Shooting over a DM, would love to connect and see if we could help. 

Evan,

You guys do sound like prime candidates for DSCR style lending as you continue to expand. To answer your first question, many DSCR transactions happen with mobile notaries or I've even closed a few at foreign consulates so that wouldn't be a problem.

I'll try to tack each question one by one, you could leave them in personal names, but it is not preferred and that is both lender and state specific. Some lenders require that it is done in some kind of entity depending one what state the property is in.

Most DSCR lenders would require that insurance, so you would want to confirm as you get started.

The only other thing that pops out to me is to be aware of varying Prepayment Penalty requirements in Pennsylvania. DSCR loans are going to usually have a set period (usually 3-5 years) that they would apply a small financial penalty for refinancing or selling before the 3-5 years is up. Pennsylvania is a little different and a lot of lenders have no-prepayment penalties in PA but you might have to pay some points or see a rate increase because of that. There is also a Transfer Tax that Pennsylvania requires that is always a 'fun' reminder on the final HUD.

Good luck as you guys are working on expanding your portfolio, happy to connect and help if I can!

Hey Ryan,

Originally from Bentonville, grew up there, and between the multi-billion dollar Art Museum, world-class biking trails (including the new one that is going to look like a ski-lodge in Bella Vista) and all the work that Wal-Mart is doing to build up their new campus, Bentonville/Rogers is probably your primo spots to start if you can break into the market (high prices and not slowing down).

You've also got a very fast growing medical corridor developing along I-49 down Rogers-Springdale-and into Fayetteville. You'll see a much better MTR approach along there as the need for medical professionals will only continue to grow.

Plus, you always have the Razorbacks in Fayetteville and the need for housing there.

Good luck though, it can be a tricky and competitive market. Build yourself a good, knowledgeable team, especially a realtor there, and you could certainly make something happen.

Hey Kevin,

I think having a clear understanding of what you are looking for is a great first step. Try not to modify or tweak your buy-box too much on behalf of what fits for the lender, but find lender(s) that can come alongside what you are doing and help make it happen quickly and efficiently.

If you are investing in OH, I would be conscious of minimum loan amounts and how they feel about 'rural' areas. OH can get rural-ish pretty fast, so have a clear picture of what you are looking for, and maybe work with a reputable broker who can help manage that for you and find the right fit there.

A lot to consider, but do your research, build a good team, and start taking steps. You should find there are a lot of different ways to make it work!

Good luck!

So if you went in that direction, the first step would definitely be to establish residence (via utility bill/ID/etc.) somewhere else so that you could leverage Investment Property loans of some kind (DSCR/HML/etc.). Then you should be good to go.

Otherwise, if you were to find a local bank, they might be able to offer up a nice little HELOC of some kind. That is where I had opened one up for myself, was a local bank/CU.

Would be happy to point you where I could on the IP loan side of things if you were interested in going in that direction.

Hey Lucas,

Not seeing much in regards to LOC offerings these days, but a lower leveraged DSCR loan could be a good fit to draw out that equity. I'm guessing that you have the property rented out currently? And is it 4 units or less?

Hey Ann, 

You'll have good ones all over the board, so nothing too crazy there. I guess my question(s) would be what market are you looking to invest in, what values are your deals going to be around, how many units will you generally aim to have, and what is your ballpark FICO?

All of these things would play a KEY role in which lender would actually be the best. Region is big because most DSCR lenders focus in different areas and might avoid other areas all together. Plus, some might avoid 'rural-ish' markets and they might have property minimums that certain regions just can't offer (see Ohio and Alabama markets)

Most will go up to 4 units with no problem, but if you are going to start looking to do DSCR for properties with 5+ units, then you will certainly run into plenty of DSCR lenders who won't touch it.

And of course, any DSCR lender will wildly differ based on what your FICO is. From leverage that they will give to the rates, whatever your FICO is will dictate a lot of the innerworkings of a loan. On top of that, some DSCR lenders might charge more in fees and points, while providing quality service, so finding that sweet spot is key.

Long winded answer to an open-ended question, but (biased opinion) that is where a broker could come into play. Good DSCR brokers know the ins-and-outs of the DSCR programs and can get you the best rates/terms.

Good luck in your hunt! Happy to connect and help if I can

Hey Eric,

Just shot you a DM, and I'm sorry you've had some issues with this. I guess my primary question would be, in a perfect world, do you want to sell it or keep it? I think you have some options either way, but they would vary pretty considerably based on which way you wanted to go.

Good luck!