All Forum Posts by: AJ Exner

'Best' terms will vary pretty considerably based on your experience, FICO, and the numbers themselves. Is this your first flip or have you done a few of these already?

Are you doing it in cash or are you using a lender to help with the purchase/renovation? If you are using financing, ask your lender if they have a template they prefer.

Some groups don't care, but some can be very particular, so I would ask them if they have one.

Good luck,

Quote from @Patrick Roberts:

Quote from @AJ Exner:

Quote from @Patrick Roberts:

Quote from @AJ Exner:

@Kaushik Sarkar

There are not many, but I do know of one that is doing pretty good work at 70% leverage right now. They just redid their legal wording to help ensure non-recourse for SD-IRA.

Just sent a DM, would love to connect and help if possible.

Good luck!

70% LTV on nonrecourse? That's wild. Is this a newer product for them, or have they been doing this for a while?

Yeah, they had some wording during 2024 that made it "non"-recourse (my wording, not theirs) but had some limitations even with it being eligible through an SDIRA. 

That being said, they shored up the language and have made it a great SDIRA non-recourse option that is top of the line at maximizing that kind of leverage.

And we definitely agree, I wish I had more clients that knew of the kind of benefits something like this provides!

Interesting. Typically nonrecourse debt caps around 55-60% LTV. This is the first lender I've heard of going to 70%.

We were taken aback as well, but they are a premier lender in the DSCR space and have maintained that. Plus, with their rewording, they have even somewhat reinforced the program as the needs have continued to develop.

Happy to provide more information if you are interested and would like to connect!

Quote from @Patrick Roberts:

Quote from @AJ Exner:

@Kaushik Sarkar

There are not many, but I do know of one that is doing pretty good work at 70% leverage right now. They just redid their legal wording to help ensure non-recourse for SD-IRA.

Just sent a DM, would love to connect and help if possible.

Good luck!

70% LTV on nonrecourse? That's wild. Is this a newer product for them, or have they been doing this for a while?

Yeah, they had some wording during 2024 that made it "non"-recourse (my wording, not theirs) but had some limitations even with it being eligible through an SDIRA. 

That being said, they shored up the language and have made it a great SDIRA non-recourse option that is top of the line at maximizing that kind of leverage.

And we definitely agree, I wish I had more clients that knew of the kind of benefits something like this provides!

@Kaushik Sarkar

There are not many, but I do know of one that is doing pretty good work at 70% leverage right now. They just redid their legal wording to help ensure non-recourse for SD-IRA.

Just sent a DM, would love to connect and help if possible.

Good luck!

Quote from @Ron Amshalom:

Hey everyone!
Asking because I'm at the beginning of my real estate journey.

Finding the right lender can be tough—especially when the deal requires creative or highly tailored financing for the investor.

How do brokers or consultants source these lenders if they don’t already have personal connections?

Asking because I'm at the beginning of my real estate journey.


Thanks in advance!
Ron

Hey Ron,

Personal connections tend to be a vital first part. Good firms are going to conferences hosted by AAPL (American Association of Private Lenders) and others to connect and form reliable relationships that will benefit their clients. 

Unfortunately, not every broker is good and often times it comes down to their ability to coordinate and ask for help from certain lenders in order to get a deal across the finish line.

On the flip side, not every lender likes working with brokers. But if you get a good one that has done enough volume with good, reputable lenders then often times they will be able to get deals that you wouldn't be able to get anywhere else. 

Hey Billy,

Definitely seeing it get done, but usually with either a leverage cut (~65%), a healthy STR income, or both.

With a good FICO, healthy STR income, maybe another STR in the area showing capability, and a good FICO, it should be doable. Have you experienced just a lot of flat denials or have you been sitting on the bridge loans?

Honestly, the other issue I've seen is on the truly unique STRs (log cabins, yurts, etc) struggle to get financing regardless of all of those. Still somewhat possible, but certainly tricky from a DSCR lending perspective.

Hey Kevin,

Is this your first time rehabbing in IL, and is it in/around Chicago? You might run into some issues if this is your first foray into that area as most lenders are going to either cut leverage, if they lend there at all.

You will inevitably find someone who can help you, just make sure to vet them as much as possible going into the deal to ensure that you don't get down the road and something that could have been avoided keeps the deal from happening.

Happy to help if I can

Good luck!

Hey Jesse,

There are a few programs that you can refinance into a bridge loan (1-2 year term) with no prepayment penalty where you can payoff the HML and get some more time to sell/unload.

Just shot you a DM, would love to help you walk through the process if you would like.

Good luck!

For sure, plenty of options up there.

Just keep an eye on loan minimums up there because depending on what part of STL you're in it might come in below.