All Forum Posts by: AJ Exner
AJ Exner has started 1 posts and replied 549 times.
Post: Investing property with Hard money lender
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Lucy Rodriguez:
I just bought a property to flip with a Hard money lender, and started working on it and supposed to sell in 6 months. Do I really need to wait the 6 months? The house will be ready to sell in 3 months. Can I refinance? Or how long after can I refinance? I have to pay $2000 a month on interest only.
Do I need to get permits for all the work needed in it? What about if I don’t get permits?
any advice will be welcome please!
Lucy,
It does look like you are referring to the minimum interest, or prepayment penalty, of your existing lender as well as the 'seasoning' period of any potential new lender.
Most HMLs won't have a prepayment penalty on a rehab-bridge loan, but a lot of long term refinance lenders would require a period of time after you purchase it before they would take the new 'after repair value' (or, seasoning). Each is going to vary a bit but generally about 6 months.
Happy to connect and see if we can help!
Good luck
Post: What's some of your exit strategies when buy property Cash
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Najeh Davenport:
I'm currently weighing my options between using cash from my HELOC or getting a private money loan for the purchase and rehab of a property. Both options would require me to refinance and pull cash out later. I've discovered that most private lenders prefer borrowers with some experience, which I'm working on building now.
My main focus is on my exit strategy. I'm particularly concerned about improving the property enough to ensure it appraises at the necessary value to recoup my entire investment. This is a crucial step for me, as it will determine the success of my investment and allow me to move forward with future projects. any thoughts on how to improve property value?
Najeh,
You will want to focus on investing in areas where basic improvements such as curb appeal and internal updates (ie kitchen/bathrooms) would support higher property values that you could refinance or sell to make your money back.
There are plenty of lenders that don't require experience to lend, but leverage/rate might be altered a bit. But to make it all happen, you will definitely want to build a team with the kind of experience necessary to make good investments and build out the type of portfolio that you are wanting.
Hope that helps, happy to connect if you would like!
Good luck
Post: Looking for lending options for fix and flip!
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Chase Preston:
Recently purchased a first property with a friend - fix and slip near our personal properties. We are completing the work ourselves. Our goal is a 6month turnaround time.
House (foreclosed) was listed for $90k originally, was able to purchase and close outright for $50k cash. Goal is to put $40-50k back into the house. Great/safe first property with the major work being a new kitchen and 2 bathrooms.
We've been discussing lending options with local banks in the area to obtain $80-90k of funding. Most banks say this is too small of a loan or we need to own location for 6months. Is hard money lending a better route to obtain lending? Any lenders out there or other resources to obtain the funding? Thanks!
Hey Chase,
I've got a program that can lend below 75k and only requires 3 months of seasoning to lend to ARV. Just shot you a DM and would love to help if possible.
Post: Cash Out, Sell or Stay Put?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Angela A.:
I have a condo as a rental with minimal loan balance in San Diego. I bought the unit about 10 years ago and it has appreciated nicely. ROE is not that impressive with around 3.6-3.8%. Basically the equity is generating return worse than the T-bill.
What should I do with the equity on paper? I have 3 options.
1) Cash out refinance with above 7% interest rate. Use the cash out as down payment to buy another property in San Diego.
2) Sell the property to do 1031 into a bigger and nicer San Diego property. 10% of proceeds will go to renovation, agent fees and etc. Losing the low property tax. But compare to Option 1, it will allow more funds on the next property.
3) Stay put. The housing price is so high compare to the rent. The cash flow of the new property from Option 1 and 2 will most likely be negative, unless putting a big down payment. The 3-4% ROE is just the way it is in San Diego. But with Option 1 and 2, can use the deprecation to offset some rental income. Would need the deprecation to offset the income after the loan is paid off.
Would appreciate your comments.
Angela,
Condos can get really tricky, not just in SD, but anything that adds an HOA can really cut into the cash flow.
Without really knowing the numbers, would refinancing at a reduced leverage be possible? I agree with Jack that assets are great to have, but I could also see the benefits of having that kind of capital to really invest in a solid STR down there. It really comes down to what you are looking at and how quickly you would need to move on it.
Good luck, happy to help where I can.
Post: DSCR min $60,000 loan Ohio.
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Myles Johnson:
Quote from @AJ Exner:
Quote from @Elvin William:
hello, any one know any lender does dscr loan minimum $60,000 or $80,000 loan amount in Ohio? I see the minimum is $100,000. Any help will be helpful. Again DSCR loan $60,000 or $80,000. Thanks
Can you please let me know of a lender that can do $60-$80k loans on properties selling for $75-$90k?
I have one available, shot you a DM.
Post: BRRRR method in El Paso TX
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Ashley Kroft:
Hello BiggerPockets!!
I am interested in the BRRRR method and am a rookie investor. I will soon have some funds (hoping between $100k-$150k) to be able to purchase my first rental property. I would love to hear your advice on what you may look for when using the BRRRR method. I am still educating myself on how to calculate the numbers. This part does not come easy for me but I am trying my best to figure how to spot a good deal.
Any advice is much appreciated!
Congrats Ashley!
It can be daunting, but that first step/purchase is usually the toughest and the best way to learn in something like this is to just go in and do it.
Building a team is going to be really important as you start your journey. With that type of starting capital, you'll have some space to scale 'relatively' quickly, but start with one, maybe two, and familiarize yourself with turnaround times and payment/draw schedules as you go.
Don't forget to network while you are doing it! Not just BP, but region/area specific folks who are fellow 'boots on the ground' that can help you and give advice when needed.
Good luck! Happy to connect and help where I could!
Post: ISO Rehab to Rent financing
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Travis Cheney:
Hi BP friends. I own a property in Tuckerton, NJ with an ARV of $325k that I'm looking to rehab and rent. Several GC's have estimated about $100k in work. Being that I own it outright, and only need $125k (budgeting for unknowns), not many hard money lenders have been overly interested. I'd love to hear who you've used in similar situations, or what sort of rates and terms could be expected. I've considered the idea of shopping it out to wholesalers, or even listing it, but I went into it with the intent to rent and I'd like to see that through if the numbers make sense.
Quick info on me that could possibly help: Licensed realtor, good credit, first rehab I’ve owned but not the first flip project completed by the GC or by myself as the realtor, strong W2 income in addition to real estate.
Any thoughts or experiences you could share are so greatly appreciated!
Hey Travis,
I close a number of these for clients, usually more common on properties that were wrecked by previous tenants and they want to use existing equity to help repair the damages.
We would classify it as a 'Refi-rehab' that would include a direct 'cash out' portion as well as a rehab escrow to reimburse you after you finish the repairs. With your license and credit, this wouldn't be a problem.
Just shot you a DM, would love to help if you are interested!
Good luck!
Post: Construction loan KS
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Gregory Sanchez:
Looking for financing on new construction of 7 duplexes in Wichita,Kansas.
Hey Gregory,
I know a few groups that I think could be useful. Just shot you a DM and would love to help.
Post: Seeking Hard Money Lender Options
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Jamie Singleton:
Been buying and renovating properties in and around WV over past 11 months with 7 homes purchased so far. I have been using a local bank for the buy and renovate work but would like to investigate hard money lender options.
BTW...tried Backflip who were horrible. They did not want to examine the ARV value to calculate a loan amount and based everything on current value. Waste of time.
Any thoughts or suggestions for hard money lenders in and around West Virginia. So far, my investment property purchases plus renovations have created $50K-$100K in equity in each home so I feel like I am selecting appropriately and renovating the necessary items to create maximum equity. Just would like to see if hard money lending can speed up my investment goals. Appreciate your help!
That's interesting, most of my clients like BF.
Regardless, it sounds like what needs to be said is there, I would just add that it never hurts to diversify on some things and that hopefully as you learn the nuances between different lenders that you can become as comfortable with them as they are with you and allow you to scale quickly.
Good luck!
Post: Commercial lender in Colorado
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Chris Cartwright:
Hi, does anyone know of a commercial lender for a 24 unit in Colorado I can refer a client to?
Hey Chris,
The first question for most lenders is exactly what @Devin Peterson said, they want to see experience doing larger multi-families. If they personally don't have any larger MFR experience, then I would suggest forming an LLC with someone who does who would be willing to jump on as a low-level equity/experience partner and that shouldn't be a problem.
Good luck and let me know if I could help you put something together!