All Forum Posts by: AJ Exner

Quote from @David Tsariov:

Quote from @AJ Exner:

Quote from @David Tsariov:

Hi everyone,

Does anyone have any suggestions for experienced lenders in Cleveland, that work with foreign investors?

Also, wondering if it makes sense to look for companies offering loans under 75K of property equity, or is it typically better to consider private lenders?

Any insights will be greatly appreciated. Thanks!

Hey David,

There are certainly a few, and Cleveland is a great area right now. I have a few clients doing pretty well up there.

There are a handful of DSCR lenders that will do loans of under 75k, but if you have a few of them and they are close, it might not hurt to look into some smaller portfolio lenders as well if it comes down to it..

As long as it cash flows, you generally will have a good argument with a lot of different groups. There are also some different classifications of 'foreign investors' so I would clarify with whatever group you look at how they would distinguish that on their end as their interpretation guidelines might even differ from lender to lender.

Good luck, happy to help where I can.

 Thank you, Aj!

Do you have maybe any recommendations for lenders that will do loans under 75K, or smaller portfolio lenders? 

Happy to, just sent a DM

Hey @Bobby Flanigan,

Welcome in, hopefully you find your investment into the space here worthwhile!

Happy to help where I can when it comes to maintaining working capital and leveraging debt at any point in the BRRRR process.

Good luck!

Quote from @Karman Narain:

Hello all, this would be my first time using a hard money lender. I have bought foreclosures in the past with cash. Anything I need to look out for in Texas? Any hard money lenders people would recommend in the Houston area? Thank you 

 Hey Karman,

A lot of great options, not just around Houston, but even nation-wide lenders who would be happy to help.

No matter who you use, they would want to know a handful of information behind the deal and some of your experience. In this case, more than others I feel in the area, the implication on the deal for the lender is not the region, but actually the method of acquisition. In foreclosure sales there are usually funding requirements (funding within a certain window of time) or title issues that aren't communicated up front that can complicate things.

Happy to help where I can if you would like to talk.

Thanks!

Hey @Tony Pellettieri,

Sounds like you guys are getting 2024 started on the right track! 

I always push folks towards DSCR/Hard Money lending if you are starting to scale, as the efficiency and flexibility with lenders in this space are specifically conducive to scaling and even leveraging equity as much as capital.

You'll want to pay close attention from the lenders that you utilize for minimum purchase price, minimum loan amounts, and if you end up BRRR-ing, keeping an eye on their seasoning requirements. Timing up your financing when it comes to purchase/refis/etc. is going to start becoming more and more important as you continue to grow in doors and working capital.

Would be happy to chat more about this if you and/or your team were interested in talking through either these deals or any others you have an eye on.

Good luck!

Quote from @James Burciaga:

Hello All, I'm in Texas and I'm looking to pull some equity out of a rental property.  What type of loan should I be looking at?

Home value $285k, rents for $3,000/mo.  No mortgage on the property.  Looking for $175k- 200k cash out on a long-term note 20-30 yr.

Hey James,

Would highly recommend a DSCR loan to keep off of your personal credit/DTI and start building from there. With the reduced leverage and cash flow potential hopefully you would sit around 7.25%-7.5% right now on a 30 year fixed.

I would also take a close look at the annual insurance and property taxes, especially if the property is also in Texas, as those can really cut into your potential cash flow.

Happy to help where I can!

I think so, I do think it can be developed, honed, and strengthened like any muscle. It is something that I have seen in my life that is fascinating to see how it is used and leveraged in others.

The good news, is that I do not think for one second that you need to have "it" to be a successful investor. I am amazed by the variety in my clients and how very unassuming folks have very successful careers investing in RE. Does it help, absolutely, but is it necessary, not at all. 

Quote from @Lianne Hall:

I am new to investing and a new agent and have a property that came to me and would love a person that can look over my opportunity to make sure my numbers. If anyone is willing would love a second look.

Lianne

Hey Lianne,

Happy to help if you need a second set of eyes! Especially on a BRRR, is it up in WA? The back end cash flow can get kind of tricky up there.

Quote from @Rashawn Dally:

I have a property under contract that I am hoping to close on in the next week. I am using a hard money loan to obtain and rehab the home. Should I wait for the rehab to be completed to refi or is there better options to get out of the hard money loan as soon as possible? 

 Hey Rashawn,

A lot of options for you on the HML. The biggest thing you want to keep an eye on is the lender's "seasoning" period, or essentially the time they require from original purchase to "After Repair Value" refinance. Most lenders are going to want you to wait 6 months or more on a refinance to go off of the new value, or they would just lend you a certain percentage of the cost of the project at that point. 

I have a few lenders that can reduce that seasoning period if you can show work done to the property and have it rented out and would be happy to help if you are interested.

Thank you and good luck!

It is a GREAT place for either flips or BRRRR right now, especially if you focus in MO.

Great growth from athletics and infrastructure advancements (solid public transit) that with the World Cup coming and a few other things in the near future, highly recommend it before it gets too expensive.

Happy to talk through it if you are interested.

Good luck!

Quote from @Gabe Callaway:

Thank you for your kind reply. So because I am at a 3rd grade level with this stuff, a rate adder would increase the rate as the property grows in # of doors? 

How are Multifamily properties traditionally financed if there ever were such a thing? Or is every deal too different to compare the financing?

Not a problem!

Correct, based on the lender you might see a rate jump from 8%-8.5% to something like 9.5% between a 4 unit and a 5 unit. It just has to do with how terms and conditions are written with that lender.

They can be financed a number of different ways, it just depends on how you want to go about it really. A 7 unit rehab BRRRR is going to be done differently and likely with different folks compared to a 13 unit buy and hold. 

The lending practices in the 2-20ish is VERY variable, especially if you haven't really done it before.