All Forum Posts by: AJ Exner

I think the clearest path is that 5-10 space, once you get above 10 it can get kind of tricky and there could be a lot of conditions.

Having a clear picture is only going to benefit, so hopefully you can snag something going into the spring and if rates start to go down a bit you'll be in great shape!

Good luck, happy to help where I can!

Hey Brett, 

So I have to ask, when you say small multi-family, are you talking 2-4, 5-10, or 10+? They all have pretty big differences in the space and can very quite a bit from group to group.

A small fix and flip loan would give you the ability to access the built in equity much faster, even if it is a 'stabilized bridge' loan that would allow for you to wait the 3-6 months for seasoning. Otherwise, you would likely be capped waiting for some kind of prepayment penalty to expire.

Even if the fixes you do is some basic clean up, patching paint, drywall, etc (~5-10k) then you could get it through and get it done pretty quickly.

Hey Sean, 

I know of a few that can do 3 months or even less. Just shot you a DM, happy to help where I can.

Thank you,

Does each unit have its own bathroom and kitchen?

Hey Travis,

So you might run into some issues further down the 'RRRR' train on this as underwriting income on MTR/STR has become trickier over the last couple of years. If the deal works, it works, but I would definitely be cautious as the property types can play a role in that as well.

Do you have a contractor ready to go over there as well? 

It may also not impact your 'approval' as much as it will impact your rate. Tends to be the biggest differentiator on 30 year fixed DSCR loans.

 Hey Deano,

You can either Quit Claim Deed it over to your LLC, or you can refinance at the new value, assuming you have owned it long enough for seasoning to take place (usually 6 months, some lenders will do 3 or less) and get some cash out as well.

Is it tenant occupied already as well? You would need a new appraisal and while some lenders can go off of the market rents on a 1007, you will want to make sure of that before you get in too far.

Good luck, happy to help where I can. Very straightforward process if you have the tenant in there and want a full cash-out refi.

Hey Lon,

LLC purchase is definitely the way to go. Make sure everyone is at least 20% members but that will create the umbrella necessary to get everyone "credit" on paper and allow them to start their investment journey.

Plus, if you purchase with an entity in a DSCR loan, it won't impact their Debt-to-income or their personal credit leaving it available for their own personal homes.

Good luck! Happy to help where I can. 

Hey @Account Closed

I can't speak too much into the LA market specifically, all I've seen personally is that a BRRRR-strategy in LA is tougher because of property values. Otherwise, there are still decent flips in this market with rates the way that they are.

As for the volatility/crash potential, there are people who get paid A LOT more than me trying to guess that, but I think in the end, that is why we do real estate instead of solely stocks, etc. because of the perceived 'stability' of real estate. People will always need homes and that is the basis in which we invest.

Reliably finding good deals is the key to sustainability in this. Working with a good investor-friendly realtor would be helpful, but always keeping an eye open and looking for alternative lead streams never hurts as well.

I hope that helps, but having contractors that you trust and being ready to move when the deal comes up should put you in good shape going into the spring.

Good luck!