All Forum Posts by: AJ Exner

Hey Jason,

Sounds like it is time for you to refinance your properties into DSCR loans. The idea of funneling debt towards an LLC will help alleviate the DTI on your personal name and free you up to buy the home that you are wanting.

Good luck in taking a look, its a fun problem to have. Great job up to this point!

Quote from @Lisa Sluss:

Hi all -

I have a house on the market that is not selling.  It’s priced below value, but people aren’t fond of the area, low walkability score, near a bus stop, etc.

I’m nearing the end of a hard money loan and I’m wondering if it’s possible to do a cash out refinance on a HARD MONEY loan.  Will someone lend me money to pay off another hard money loan?

For sure, I would recommend a ‘bridge to sell’ loan that would be based on the new ARV that could buy you some time. 

Just to prepare you though, they will see what you tried to sell it for and, whatever your original ARV might have been, they will likely base refinancing numbers on the most recent sale price, if not even a little lower. This is because by not selling, it effectively showed that it is not worth that. 

Good luck! Happy to help where I can. 

Hey Micah,

There are certainly lenders that can help with something like that, but I think you are going to run into some issues with your values. 

Setting up a refinance with an escrow would be fine, but if your ARV is only 75k, then most groups would do 70% of ARV, which after your 7500 payoff and closing costs, puts you with an escrow around that 40k mark.

It would be tight for a lot of groups, plus refinancing at 75k could be a challenge as well.

I think I know of a few that could help, would be happy to connect and see how we could help

Good luck!

Hey John,

Some DSCR lenders would only require 90 days of seasoning and you could refinance it at that point, which would do the same as a Quit Claim in getting it under your LLC.

You would essentially shift the ownership on title from your individual name into your LLC via the refinance and save some additional closing costs, though minimal they may be, by not closing a QC and a Refi back to back.

Good luck! Happy to help where I can

Quote from @Clint Miller:

Hey BiggerPockets Community!

I’m curious to hear about how everyone here is financing their fix & flip projects. Whether you're a seasoned investor or just getting started, finding the right financing can make or break a deal.

Would love to hear your experiences, tips, and any questions you might have about securing financing for flips. Let’s share insights and help each other out!

Hey Clint,

So 1,000% Biased, but each HML is going to have some kind of a 'buy box' that their investors are asking deals to be within. Whether it is experience requirements, leverage requirements, minimum property values, ARV ratio, FICO requirements, and even specific regions that they will/won't lend to, its important to know what those are for the lender you are inquiring with.

If you are planning to do a few of them or even just a couple a year, it might be good to check in with a broker that is familiar with the space and has the connections and knowledge to help get you what you need. 

Hope that helps, happy to point you in the right direction if you are looking for some help.

Good luck!

Jerome,

Yes, there are some lenders that would take ABNB/VRBO income reports to show income, but there are alot that don’t. How many months of trailing income can you show? 

Some would take those, 1007 market rents, or even AirDNA, so knowing which ones is important as you start your refinance(?, I’m guessing) 

Good luck! Happy to connect if you are still needing help

Hey Jephte,

Most DSCR lenders are going to have significantly less seasoning requirements, usually around 6 months, and honestly, you might be surprised at how competitive the rates would be.

I know of a program that can refinance at 90 days seasoning with rates in the 6s right now, just sent a DM and would love to see if we can help.

Good luck!

Quote from @Natasha Rooney:

Quote from @AJ Exner:

Quote from @Natasha Rooney:

Quote from @AJ Exner:

Hey Natasha,

It is a great place to start, plenty of inventory whether its for flipping, BRRR-ing, or holding at affordable prices while still having decent rents (with or without section 8)

With that, it is a pretty competitive market. I would make sure you have a good team ready to go and be ready to pounce whenever the opportunity presents itself.

From the lenders perspective, it can be kind of tricky because there are plenty of properties that cash flow well, but even fully-rehabbed they are less than 100k, which make them difficult to lend on. I am aware of a few options, but you would need to be aware before you get in too far to level with expectations.

Good luck!

 Thanks for the insight! 

I see that you are a lender - any input about getting financing as a cross-border investor? (I am Canadian) 

Thanks!! 

Do you have a credit score here in the US? Might have a few options for full leverage there, but if not, likely sitting at around 65% LTV on anything long-term/DSCR

 No credit score in the US! haha I know it puts me at a disadvantage but I think its still workable.

Disadvantage, but not impossible!

Quote from @Phil Chehet:

Has anyone found a hard money lender willing to finance properties with a purchase price below $50k? Many lenders avoid these deals due to the low resale potential, but I'm curious if there are any loan products available for this price range, especially in markets like the Midwest

Also, does anyone know if any lenders are bundling multiple low-cost loans to meet minimum loan thresholds?

Hey Phil,

Yes, I am aware of 2. One would ask that you put 10k in regardless of your eligible leverage, and they would fund the rest + 100% of the rehab. 

The second one would be more traditional, but are pretty pricey on points and rate.

Would be happy to connect and see if we could help!

Thank you,

Quote from @Natasha Rooney:

Quote from @AJ Exner:

Hey Natasha,

It is a great place to start, plenty of inventory whether its for flipping, BRRR-ing, or holding at affordable prices while still having decent rents (with or without section 8)

With that, it is a pretty competitive market. I would make sure you have a good team ready to go and be ready to pounce whenever the opportunity presents itself.

From the lenders perspective, it can be kind of tricky because there are plenty of properties that cash flow well, but even fully-rehabbed they are less than 100k, which make them difficult to lend on. I am aware of a few options, but you would need to be aware before you get in too far to level with expectations.

Good luck!

 Thanks for the insight! 

I see that you are a lender - any input about getting financing as a cross-border investor? (I am Canadian) 

Thanks!! 

Do you have a credit score here in the US? Might have a few options for full leverage there, but if not, likely sitting at around 65% LTV on anything long-term/DSCR