All Forum Posts by: AJ Exner

I'm still experiencing a lot of hesitation with traditional banks in my area and, from what I'm seeing, DSCR rates (true DSCR deals) are actually beating the trad groups in a lot of areas.

I am seeing a rise in Cash-out bridge loans with the anticipation of rates dipping a bit more going into the spring, but I saw the same thing in 2023/2024 and I remind people that rates dropping are not always guaranteed and that cash now is almost always better than cash later. 

Hey Anthony,

Yeah, that is a tricky one to navigate. To be clear, it hasn't been discharged yet?

I am aware of a few groups that are more generous than others when it comes to timing of clearance/discharge but they will mitigate their risk by either offering a higher rate, dropping your max leverage, or both. 

I think the best bet is going to be to get it cleared/discharged/whatever as soon as possible. I am not sure of any group that is going to lend while it is actively being resolved. When it comes to approaching lenders, if you are not working with a broker (which I might suggest), I would start with any and all implications to make sure you are not wasting your time. It is human nature to want to try to tuck that away and hope it doesn't get noticed, but UWs are pretty smart and you definitely don't want to be 3-4 weeks into something and get denied at the last second.

Happy to connect and talk a little more

Good luck! 

Or DSCR, but that would usually come with a Prepayment Penalty of some kind, so a 'Cash Out Bridge-to-sell' option should work.

A lot of options could still take about 25-30 days or so to close but you would have some more flexibility on the credit score side of things.

I would even add that valuations have been a pretty big hurdle across the board.

Certainly seeing it in some markets more than others, but I think because of the 'buyers' market and prices starting to go down a little bit, some comps and valuations are really struggling and playing a big role in the tougher 'underwriting' (being that some deals just aren't penciling)

There are a hand full of HMLs that I know keep things pretty 'in-house' (desktop appraisals/etc.) that I've seen them close in 5 days or less for sure.

Of course, with HML you always need to keep an eye on what that 'speed' costs. There are a lot of great options but being aware of what that might look like is important going into a deal so that you're not surprised at the closing table

Hey James,

Biggest differentiator that I see with true non-recourse, SDIRA loans is leverage. They are riskier loans for the lender (easier to 'walk away') so they tend to cap your leverage at ~70%.

Rate is maybe a tick higher, but pretty standard other than that.

Happy to connect and help if I can. 

Good luck!

In my market (Missouri) I'm seeing the higher price homes staying on the market a little bit. 

With the high(ish) rates its leaving the $500k-$600k+ homes sitting a little longer while your smaller SFH/rentals are pretty active especially with higher rental amounts.

Seeing flippers working more volume than anything else, which obviously complicates a few things but keeping an eye on the market for those higher value ones to start moving again, hoping this spring.

Devvrat, 

Would recommend partnering with a lender that only requires soft-pulls which tend to be more and more of the DSCR Lenders.

It is certainly an element of scaling that is important to keep an eye on. Especially if you are BRRRR-ing properties, you run the risk of two hard inquiries for every property which can add up quickly.

Good luck!

Sounds like Hard Money would be a decent option as long as they are okay with some seller financing.

I think I know a group that might be able to help, where is the property located?

Hey Joseph,

They are harder to find, but there are a few groups that would do it at a max leverage of about 60%-65%.

Happy to point you in the right direction

Good luck!