All Forum Posts by: AJ Exner
AJ Exner has started 1 posts and replied 549 times.
Post: Looking for low minimum amount loans for 60-90k properties
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Piper Pepperidge:
Most lenders impose a minimum 100-150k lending amount, even less will go below the minimum and lend on an LLC. And 60-90k is also typically too low for dscr loans. Wondering if anyone knows any good places?
Hey Piper,
Just shot you a DM but there are some good programs down there but the fees are something to be aware of. Often times when you have minimum loan amounts you also have minimum fees that look fine at $200k-$300k, but at $50k those flat fees are a bigger chunk.
Good luck!
Post: Lender Recommendations for Ohio - Cash Out Refi, Investor Friendly
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Reid Beckers:
Hi all,
Looking for recommendations or successful personal experiences with investor friendly lenders in the Ohio/Columbus area. Would like to find financing options (DSCR/Traditional) for a cash purchase i've renovated and are looking to hold long term. If you have had a good experience please let me know.
Reid,
Sent a DM and happy to recommend. As a heads up, without knowing too much, I know my portfolio clients up in OH need lenders that can do loan amounts below 100k, so if you have any of those, make sure to tell them going into it.
Good luck!
Post: Single family home but just found out about the BRRRR Method
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Blanca Munoz:
Quote from @AJ Exner:
Quote from @Blanca Munoz:
Hello, so I bought my first house and before I bought it, I didn't know about the BRRRR Method. I purchased the house for $145,000 and they were asking for $180,000. It appraised for $150,000. Renovations would cost around $30,000 but the only things I've done are Plumbing, foundation work, gas line, and new windows. All of this has cost me about $10,000. I paid in cash for all of this. My question is, since I already closed on the house, can I still do the BRRRR method? If so, how do I go about it. Should I do a HELOC to renovate the rest? I'm thinking of doing the BRRRR method but house hacking it since it's my first home. Is this possible? I just started watching a lot of videos on the BRRRR method and don't know what to do after doing those repairs. Can someone give me advice? I have all the numbers from the loan if someone needs them to help me run it and for it to make sense for me. I guess I'll see if I made a good deal or not in order for this to work.
Blanca,
Yes, you could take a HELOC for the remaining repairs, or refinance into a bridge loan and get some capital back to make those repairs, and then refinance into the long term loan that you are looking for.
Your bridge loan would be that 6-12 month Interest-only loan with no prepayment penalty. This would allow you to get some cash out, make the final repairs, and then do the final cash out refinance to prepare for your next one.
Good luck!
But would I only be able to get 5k out since it only appraised for 150k?
Did you purchase it with all cash or with a loan?
Post: Privet money Needed
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Hunter Gibson:
Hi Everyone,
I'm seeking a private money lender for a $350k loan to finance a small commercial 6-unit rental property. I'm able to provide a 10-12% returns or equity if they prefer, with the seller financing the remainder.
Does anyone have advice on connecting with private money lenders and securing the necessary funding?
Thank you!
Hey Hunter,
Are you looking for a true private money lender, or more of a DSCR style lender? There is a lot of similarities but I wanted to confirm what you were needing.
Post: Single family home but just found out about the BRRRR Method
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Blanca Munoz:
Hello, so I bought my first house and before I bought it, I didn't know about the BRRRR Method. I purchased the house for $145,000 and they were asking for $180,000. It appraised for $150,000. Renovations would cost around $30,000 but the only things I've done are Plumbing, foundation work, gas line, and new windows. All of this has cost me about $10,000. I paid in cash for all of this. My question is, since I already closed on the house, can I still do the BRRRR method? If so, how do I go about it. Should I do a HELOC to renovate the rest? I'm thinking of doing the BRRRR method but house hacking it since it's my first home. Is this possible? I just started watching a lot of videos on the BRRRR method and don't know what to do after doing those repairs. Can someone give me advice? I have all the numbers from the loan if someone needs them to help me run it and for it to make sense for me. I guess I'll see if I made a good deal or not in order for this to work.
Blanca,
Yes, you could take a HELOC for the remaining repairs, or refinance into a bridge loan and get some capital back to make those repairs, and then refinance into the long term loan that you are looking for.
Your bridge loan would be that 6-12 month Interest-only loan with no prepayment penalty. This would allow you to get some cash out, make the final repairs, and then do the final cash out refinance to prepare for your next one.
Good luck!
Post: Fix and Flip funding
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Jose Laffitte:
Hello All,
I am fairly new to REI and taking some baby steps to do research and find lenders that will fit my needs. Has anyone used BackFlip to fund any deals?
Hey Jose,
Yes, I have worked with them multiple times and they are very solid. I have found that their sweet spot is after you have flipped 2 properties, as they have a number of programs (Zero Gravity, Double-Double, and standard) that can suit your deal and what you need at that time.
Happy to help navigate it if you are needing some help breaking them down.
Good luck!
Post: Move property to LLC
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Amby Bhagtani:
Hi - I Am looking to move the property from my name to a LLC in Ohio. Does anyone have experience with this? I have a few questions. Thanks !
Amby,
You could either Quit Claim it, like @Remington Lyman suggested, or refinance if you are in a position to (don't have a 2020 rate and have some equity in it). The kicker for a lot of folks is giving up a 3%-4% rate to do that which makes Quit Claims a little more effective.
You just want to make sure that the title is done properly to avoid any downstream concerns
Post: Hard money loan for individuals? (not LLC)
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Sean Haran:
Hello, I’m looking at a deal that would be perfect for a hard money loan, and I’d rather use someone else’s money rather than my own to get this done. I made an offer which (according to my realtor) is about to be accepted today or tomorrow.
All of the hard money loan options I've found require me to borrow in an LLC, which I don't have now. Since I am literally about to start the process of buying this property I doubt I have enough time to set up an LLC for the loan. Is there any hard money lenders who lend to individuals rather than an LLC?
Sean,
There are some lenders that are okay with closing in your individual name, and some that will do a rate adder if you do, and some that can only do it in certain states. Connecting with the right one would be a big part of it, on top of finding the right, cash-flowing property of course.
Happy to connect and help if you would like!
Post: Delayed financing - all cash offer then refi immediately?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Devin Powers:
Quote from @AJ Exner:
Quote from @Catherine Ding:
Quote from @AJ Exner:
Quote from @Catherine Ding:
Hi BP!
Has anyone offered all cash then immediately refinanced to get the cash out? I am planning on doing all cash on an offer to make it more competitive and then getting a mortgage immediately after, but I was advised against doing this by a lender. He said that rates for cash out refi would be higher and you can only take out 80% of purchase price, not the ARV. I would be ok with only being able to take out up to 80% of purchase price, but I'm just worried about having to get a much higher interest rate. Anyone have any insights or experience with this? Thanks!
Hey Catherine,
We classify it as a 'Delayed Purchase' and set it at 80% of purchase price.
So if there is built in equity in the property, you would be missing out on it because of a presumed prepayment penalty, but its a great way to leverage the bargaining power of cash while still maintaining capital to buy multiples at a time.
Would be happy to help if you would like to take a look at what you would qualify for.
Thank you for your insight. My biggest question is -- are the rates higher for "delayed purchase" or would it be the same as a regular purchase? I feel like I am getting differing answers about this from different lenders I ask. Thanks!
It really shouldn't, if its a true 'delayed purchase' then from the lender's perspective it should be the same as a purchase. The issue is that you won't get to capitalize on existing equity (ie, getting a 'good deal on it') for being able to maintain some existing capital.
Just shot you a DM, would love to connect and talk through it to make sure I'm not missing anything.
This is not correct. If you're doing a conventional loan, Fannie Mae and Freddie Mac guidelines say that delayed financing will follow "cash-out refinance" pricing matrix which inherently has slightly higher rates than a purchase. If you're doing a DSCR loan, the difference in rates will vary by lender but generally cash-out refinances will result in a slightly higher rate.
Correct, I was referring to DSCR loans as a delayed purchase.
Some of the lenders that I work with treat the rate as they would a straight purchase as long as they fall within their timing, pricing, and regional parameters, which is why I requested some more information.
Post: Delayed financing - all cash offer then refi immediately?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Catherine Ding:
Quote from @AJ Exner:
Quote from @Catherine Ding:
Hi BP!
Has anyone offered all cash then immediately refinanced to get the cash out? I am planning on doing all cash on an offer to make it more competitive and then getting a mortgage immediately after, but I was advised against doing this by a lender. He said that rates for cash out refi would be higher and you can only take out 80% of purchase price, not the ARV. I would be ok with only being able to take out up to 80% of purchase price, but I'm just worried about having to get a much higher interest rate. Anyone have any insights or experience with this? Thanks!
Hey Catherine,
We classify it as a 'Delayed Purchase' and set it at 80% of purchase price.
So if there is built in equity in the property, you would be missing out on it because of a presumed prepayment penalty, but its a great way to leverage the bargaining power of cash while still maintaining capital to buy multiples at a time.
Would be happy to help if you would like to take a look at what you would qualify for.
Thank you for your insight. My biggest question is -- are the rates higher for "delayed purchase" or would it be the same as a regular purchase? I feel like I am getting differing answers about this from different lenders I ask. Thanks!
It really shouldn't, if its a true 'delayed purchase' then from the lender's perspective it should be the same as a purchase. The issue is that you won't get to capitalize on existing equity (ie, getting a 'good deal on it') for being able to maintain some existing capital.
Just shot you a DM, would love to connect and talk through it to make sure I'm not missing anything.