All Forum Posts by: AJ Exner

John,

So it can still be in a 'rural' area, but it really comes down to what the appraisal itself says. I've had deals in small towns that were able to get full leverage on a refinance because the appraiser said it was "suburban" instead of "rural" on the appraisal.

Otherwise, there are a few groups that would still lend to about 65% of a fully leased rural property, but it would be very difficult to get more than that.

Good luck! Happy to help if I can

Very few options utilizing IRAs from the non-recourse side of things. I do know of a group doing it with reduced leverage (70%) so as long as you are comfortable with that there is a good option with qualifying credit and everything.

It would still have to follow general DSCR guidelines for values and amounts, but it's certainly doable.

Would love to connect and help if I could.

Good luck! 

There are a few that I know but usually comes with experience qualifications, FICO/reserve requirements, specific lending regions, or all the above. I would think if the numbers line up and you have some experience that there should be some options available.

Plenty of options available for you!

Play around with the Find a Lender option here on BP, or reach out to any number of people who I'm sure will respond to this post

https://www.biggerpockets.com/business/finder/lenders

Your partners licensure should help overcome any hurdles, just make sure they are Non-Dutch and make sure it's not too rural, and you should be great.

Would love to connect and help either on the rehab or refi when the time comes!

Good luck!

Shoot, that is going to vary wildly based on where it is, what the ratio of square footage devoted to commercial vs. residential, the rehab to purchase cost, and probably going to be impacted by your FICO, experience, and liquidity. 

Just sent you a DM to get some more information, but if the residential space is a little more, it might move the deal to a few new lenders that could help.

Good luck!

Hey Brad,

Should have a bunch of options here on the platform, highly suggest the Find a Lender tab that can get you in the right direction!

(https://www.biggerpockets.com/business/finder/lenders)

Biggest things to ask, is 1) to make sure they can use HELOC funds (usually they just want to see them in an account first) and you should be fine. 2) Make sure they are okay with purchase prices below $100k on a rehab (and total loan amount assuming 20% down). Especially as a first timer. And 3) Make sure they lend in the area you are investing in.

Other than that, have fun, learn a lot, and good luck! Happy to connect and help where I can!

Hey Dale,

So the best way to find some GAP funding is to look for private investors either in your area or that you know that would help. They are inherently riskier loans so it takes a baseline level of trust, or legal protections, to ensure that the Gap lender in question is protected because being in subordinate position on title means that if it gets sold for less (via bankruptcy or any number of proceedings), you are more likely to lose your money.

You also need to make sure that your primary mortgage holder on the deal is okay with there being a Gap funder. If you end up moving in that direction and putting all the dominos in place, the last thing you want is to get towards the end and have the deal denied because of that.

Unfortunately, most GAP funders keep regional to markets and people that they know and they keep them close to the chest. My recommendation would be to start finding deals and working local REI meetups to see who you can run into.

Good luck!

Should be plenty of options, are you looking at moving completely away from conventional/bank loans and into a DSCR loan? What kind of leverage are you looking at refinancing into?

Hey Taylor,

If the numbers work, there are plenty that will.

There are a few that might want to see similar jobs of that size that you’ve done, or some kind of licensure. If you’ve done bigger projects like this, have additional experience, and the numbers look as good as you’re making it sound, you would be a shoe-in.

I guess my question would be, what kind of leverage are you looking to get on the purchase? Plenty of programs would be happy to help you out, but I would be intrigued to see how a deal would look like for you being willing to take on the rehab funds yourself.

Good luck! Would love to connect to see if we could help.  

Hey Mike,

That transition from F&F to GUC is a tricky one, but there are a few programs that can help you with that as long as you have some extra reserves/liquidity and are working with a good builder.

Are you looking around Virginia or are you working somewhere else?