All Forum Posts by: AJ Exner

Hi everyone

Can someone explain to me from start to finish how does a HML work? I always get scared when someone suggests HMLs... I literally think of loan sharks or getting your house or assets taken away from you when I hear it LOL.

What does points mean? How much are closing costs? And I understand (I think) your making interest only payments until you pay back the loan? What if I finish the project in 3 months do I owe any more interest on it?

Debating to use a HML for a flip or a BRRR. I'm trying to pinpoint my financial strategy in attaining these projects and HMLs are always suggested to me.

My goal this year is to buy my first investment. I want to operate from a place of logic, not fear. This forum so far has helped me very much in learning.

Thanks in advance

Hi all,

where are investment property rate at today? 500k property with 20% down? 

I currently own 2 homes free and clear. One older I bought at an auction  and a new build. I have a large lot and approval to build a duplex. I am done spending my money and am looking to scale. 

Do yall do a refi for this or get a heloc? With rates at this level I an not sure places will cash flow at 80% loan value. 

One home is worth 125k and new build is hitting the 230-250k mark.

Hi,

If someone has existing properties in their name. How do you transfer them to an LLC? What implications does that have when trying to get a new loan or refinancing an existing one once it's in an LLC? Would rent payments need to be paid to the LLC?

Thanks,

Robert

Good day Bigger Pockets family,

Question for my seasoned investors. I left Corp America 2.5 years ago. I now have a portfolio of 11 condo's in Southeast Washington DC, and 2 tenant occupied SFH's in Charlotte. I have about 175k in equity in one of my Charlotte properties that I would like to tap into that via HELOC or cash-out refi. But with showing minimal taxable income over the last 2 years, it's now hard to qualify for any type of traditional bank refinancing. It's a vicious catch 22. Anyone have any remedies for a situation like this, as investors?

Thanks,

Adrian Jones

We're looking to buy a multi-family property in Scott County Iowa to rent out for long term passive income. Does anyone know of a good hard money lender that offers a 90% LTV for a multi-family long term rental purchase?

I have a single family house in Corpus Christi, TX that is my rental property. The only loan on it is a $40K HELOC from BoA. It has a high adjustable rate of 10.5% & climbing.

I live in San Antonio, but this rental is in CC. I want to do a cash- out refinance of $60K ( $40k to pay off HELOC, $10K for new roof, & $10K for my personal purposes). Obviously a fixed rate mortgage would have a lower APR - & that's my main reason to re-fi.

I have good credit & income - & I always qualify. The issue is as I was calling around - I haven't found a lot of banks that will lend on a rental property ( at least in CC). Another issue is that if I could find a bank that lends on rentals - they often have minimum loan amounts ($80K for example). Which, I don't want or need that much. ( yes I know the house will qualify because it would be less than 50% LTV- I just don't want higher payments on money I didn't want to borrow).

The other thing is how much higher is the fixed rate, because it's a rental? And how much do closing cost run? Because I paid 0 closing costs when I got the HELOC 2 years ago. So if the rate is high & the closing are high & the loan minimum causes me to over- borrow -- then the payments would be higher & it would not make sense at that point to cash- out refi at all.

Any lender recommendations who have good, rates, low closing- costs& a minimum loan amount of $60K or less?

Good evening,

I am looking for lenders who can provide loans in rural areas for fix and hold as well as refinancing into DSCR once renovations are completed.

Hey All,

I have gone full time into rehabbing & selling houses over the last year. In that time I've used several different funding options. My own cash, local community banks, & hard money. I've also used GC's to complete full rehab jobs & depending on how much work a house needs and how comfortable I am with the rehab, often times I will sub out the work to different painters, handymen, electricians, plumbers, etc instead of using a GC.

The more I do this the more comfortable I am managing the jobs myself and it often times saves me significant amounts of money on the rehab costs to just sub out the work vs using a GC for the full rehab. With all that being said, I'm hoping to start using sub contractors to handle the majority of my jobs moving forward, but I'm running into a small snag.

The majority of the houses I'm buying right now I'm using hard money to fund. With pretty much every lender I've used they charge a draw fee whenever I pull a construction draw to pay out a contractor. They're typically $150-$300 per draw depending on the lender. This is typically not a huge deal when I'm working with a GC. They're usually fine getting 2 draws throughout the construction project and it just costs me an additional few hundred dollars in fees. However, in working with sub contractors it is going to require more frequent payments to them vs the one or two draws I would request when working with a GC. I'm trying to figure out how to navigate this without increasing the number of draws I'm requesting from the hard money lenders. 1-2 draws/project I can handle. 5+ and that starts to really dig in to the profit margin on a deal. Has anyone navigated this scenario? Any recommendations for how to best handle this? I could, in theory, just keep some money in savings to float these costs, but I'd really rather that money go to buying another property instead of sitting their floating money to pay contractors.

Hi Aj,

Thanks for your reply, would you please send the lenders contact info that do 3 months seasoning ?