All Forum Posts by: AJ Exner
AJ Exner has started 1 posts and replied 549 times.
Post: Building a team?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Dallas Sutton III:
Thank you to everyone who responded to my last forum post, it was very informative and helpful! I was doing more research and looking for meet up groups in my area. I've seen others mention about building a team and I am wondering who would I need for my strategy. I'm still using the BRRRR method. Thank you everyone!
Hey Dallas,
I have a number of clients out in the Carolinas and would love to help you secure financing for future deals as you really get going, especially going into the spring. Building that team is going to be really helpful as you do.
Thank you and good luck!
Post: Best DSCR loans out there?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Jordan Ryan:
Hi everyone just wondering the opinions on the best companies out there for DSCR loans? Trying to buy a 3 family that needs some TLC maybe do a BRRR. I have talked to so many lenders around the same like 7% with 1-2 points up front . Any advice ? Thanks
Unfortunately, that is kind of where we are at right now. Biggest thing would be to confirm the loan amounts and if they will lend to that particular area (being keen to make sure its not rural). Otherwise, we there until rates start to dip a little bit.
Hopefully the 3 tenants will help in overcoming that rate until you can refinance down the road.
Post: Looking for help with DSCR Loans
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Hey @Mario J Perez
Advantages - Processing time, underwriting conditions, paperwork requirements, not impacting debt-to-income and/or personal credit, can own many and close in entities reducing personal liability (to name a few).
Disadvantages - Rates tend to be a tick higher (less and less these days) and fees will be a few thousand more per deal, can be very regional, higher appraisal costs usually (based on the need for a 1007 rent market analysis on every one), can have weird underwriting conditions (lender specific)
30,000 foot view at it, but the entity/personal credit side of things make DSCR loans really helpful as you start to scale, and especially if you are doing any personal borrowing for personal homes, cars, etc.
Hope that helps!
Post: When in the process do you start to get your funding in place?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Peyton LaBarbera:
When flipping houses when do you start the process of getting your funding in place?
Peyton,
Yeah I talk with folks who like to have EVERYTHING squared away before they even put an offer in and then I talk with folks who are reaching out when they have a property already under contract.
I tend to agree with Peyton that it is really good to have an idea on the type of financing you are wanting to do (Hard Money, House hack, Conventional, etc.) and get an idea on the folks to deal with. But, it is definitely possible if you snag a property that you can't pass up on to utilize a Mortgage Broker who can generally get you set up with something based on your needs at the time.
Post: What kind of a loan i can qualify
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Irfan Saeed:
I have fully paid investment property which i am finishing to rehab. i am planning to either airbnb or long term rental on this house. i am looking for cash out refinance options on this house without my personal income verification. Please suggest what kind of a loan i am eligible for. Thanks
Irfan,
Absolutely second Jacob, that is the definition of a DSCR loan. The toughest thing might be if you decide to use it as an Airbnb because the "income" of the property is a big factor in determining the type of DSCR lender that you can use. A lot of lenders will even require that a tenant is actively in the property in order to close on the refinance.
Check with any lender that you might work with to see if they are okay with 'vacant refinances', that will usually let you know if they need a tenant in there or if they are okay with vacant properties (and usually okay with Airbnb-type investments as well).
Good luck! Happy to help where I can.
Post: Unrestricted Dscr Loan?
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Camilo Perez:
I own a rental property with great cash flow. 3 1br/1ba units and a 2br/2ba unit. I have applied for DSCR loans with several companies but they have been unable to assist due to size of the rental units. It seems like there is a size requirement for rental property. I thought the requirement was enough cash flow to cover the loan? Any help with DSCR loan that does not have a building size requirement?
Hello Camilo,
Yes, often lenders have both minimum loan amounts as well as minimum square footage in the living space. I do know of at least one program that I have seen get pretty low, did you get as far as getting the appraisal with your current refinance?
Just sent a DM, happy to help where I can.
Post: Cash out on Fix and Flip before starting the project.
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Rahul Gupta:
Hello,
I have done just about 4 flips so far and the idea is to be able to leverage the cash at hand. The deals I usually go after are the ones where the property value is between 50-70k and rehab of 20-30 k, so def under the 100k mark.
I have tried different avenues as well, but is it true that most of the times lenders don't do it for fix and flips, but rather in a long term rental loan situations.
Thank you
Rahul,
Delayed financing requires two closings, but it gives you the bargaining leverage of cash purchases while recovering a bulk of your initial capital and providing funding for the rehab.
There are lenders that can help with lower loan amounts/purchase prices, you just have to know if the lender is capable of it going into the process.
I hope that helps, happy to assist where I can.
Post: Using Hard Money Loan to purchase/fix up house, then refi into a conventional primary
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Artem Moskalenko:
Hello All,
I am thinking to purchase a fixer upper property using a hard money loan, fixing the property up and then refinance into a primary conventional mortgage loan and live in the house as my primary residence. Few reasons I'm thinking about using hard money loan to purchase the property:
#1.) The property is listed on the MLS as a cash only fixer upper and will not qualify for a conventional loan.
#2.) Using hard money loan to have a competitive "all cash" fast close offer.
I saw a similar post about 7 months ago by "Mike Romano" with a similar question, however I didn't feel like he explained the reason why he was planning to use a HML instead of a standard conventional loan in the first place. I understand HML have lots of associated costs to them but the main reason im considering this option is because the home is listed way below market value and is a cash only property. The plan would be to take 4-6 months to fix up the property, and then refinance it into a 30/y fixed primary mortgage and then move in/live in the property as my primary home. Another possible option would be to do a cash out refinance to get some of my rehab money out of the property and only leave my 10-20% downpayment (whatever the HML lender requires to purchase the property)
I would love to know if this is possible or if there are any issue with the plan, especially in the refinancing into a primary portion.
Thank you in advance.
Artem,
It is very doable. Especially if you set up with the lender going into it, but set it up as a 'delayed finance' that would recoup ~85% of the purchase price along with a small rehab escrow to reimburse you for the rehab that you plan on doing.
Then, just set up with the lender that you are working with that your exit strategy is to 'refinance', which is true, but then refinance with a conventional lender and everyone is happy.
Is that along the lines of what you are planning? Happy to help where I can!
Post: Kansas City Super Bowl Win influencing the Kansas City housing market.
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Serena Bales:
The Kansas City Chiefs' triumphant victory in the Super Bowl not only ignited celebrations across the city but also sparked discussions about its potential impact on various aspects of life in Kansas City. As the city revels in the glory of its football team's success, questions arise about how this historic win might influence the housing market in Kansas City.
According to [Enterprise Esquire], “putting your home on the market after the Super Bowl can be a strategic move, as it is generally considered to be the start of the Spring real estate market.” The Super Bowl attracts significant media attention and spotlight the city on a national stage. Kansas City Chiefs' victories have undoubtedly increased visibility and positive perception of the city. According to data from [Real Estate Analytics Firm], inquiries about housing in Kansas City surged by 35% in the month following the Super Bowl win. This increased interest suggests that Kansas City may attract interest from individuals who were previously unfamiliar with the area but are now intrigued by its vibrancy and sense of community, leading to an influx of new residents.
The Kansas City Chiefs' Super Bowl wins have undoubtedly bolstered civic pride among residents. According to a survey conducted by [Local News Outlet - Fox4], 80% of Kansas City residents reported feeling a heightened sense of pride in their city following the Super Bowl victories. This surge in local pride often translates into increased confidence in the city's overall desirability as a place to live. When people feel a strong attachment to their city, they are more likely to invest in its future, including purchasing homes and putting down roots. As the city experiences heightened attention and an influx of visitors, local businesses thrive, and the economy receives a boost. A study conducted by [Local Economic Research Institute of KC] estimated that the Super Bowl festivities generated $100 million in additional revenue for Kansas City businesses. A thriving economy often correlates with a healthy real estate market. With more people gainfully employed and financially secure, the demand for housing tends to increase.
The Kansas City Chiefs' Super Bowl win has proven to have a profound and lasting impact on the local real estate market. From boosting civic pride to attracting new residents and investors, the win has positioned Kansas City as a desirable destination with a bright future!
Don't forget that here in a few years, KC will also host multiple World Cup games hosted within North America, bolstering continual attention to an area that is definitely doing well in that regard.
Plus, Mahomes isn't going anywhere, so its only going to keep going!
Post: Hard Money Lending
- Lender
- Springfield, MO
- Posts 574
- Votes 285
Quote from @Alfredo Alfaro:
Hello,
My partner and I have a property and we are coming to the end of of our expiration of 6 months. The property is already listed and on the market but might not make it to the closing table
I know it’s not common but do some hard money lenders sometimes buy out the other hard money lenders to give the person more time to sell?
Current HML isn't the greatest and is only offering 1 month extension at most.
Thank you in advance.
Hey Alfredo,
It is not 'common' but definitely possible. I'm assuming you used the current HML to aid in the rehab of the project, in which case you might even be able to use a bridge loan to buy some more time and even utilize the new ARV.
What it sounds like you are looking for is a 'Stabilized Bridge' which, like Erik stated, buys you the time to hopefully sell at what you are looking for but might even get you a little cash out in the meantime depending on how the financials are looking.
Good luck! Happy to help where I can.