All Forum Posts by: AJ Exner

Luther, 

The hang-up is usually in underwriting the income. There are a few that utilize things such as AirDNA to assist with that, but generally seeing that proof is a good way to overcome that as the lenders that do that will usually do an 80-90% cut on what AirDNA says.

I have some clients that will do a 12 month stabilized bridge at 70-75% of the new value to get out of the 'Construction' or rehab bridge and still get some cash out while they are making money on the STR income.

Hey Ben,

Saw this pop up and wanted to see if you were able to hone in on anything. There are so many options in this space and it can become a lot really quickly, and usually every program varies on those different perks that you mentioned, not to mention having other perks like deferred interest payments.

Are there some ballpark terms that you are hoping for?

Hi Stephanie, 

It sounds like you are in great position with your portfolio! What type of plans do you have for the future of you and your portfolio? If it is just to continue to purchase more properties and continue to invest, there are a lot of options for you. 

Are you hoping to keep your financing through more conventional lenders or are you thinking more private/hard money? Each have their advantages and disadvantages as you continue forward.

David, 

Each lender, especially in the Hard Money space is going to differ based on the property type that they want to go after. Different capital market Hard Money lenders have unit 'caps' on how many units they are comfortable lending to, such as many are uncomfortable lending to more than about 4 units. 

As well, many might even include a price per unit minimum that I would confirm as you begin those conversations.

On the flip side, keeping the property that you are looking at below about 10 units will tend to maximize your cash flow without killing you on the rate. HIGHLY recommend Hard Money as you begin to expand.

Hey Ben,

I would echo what everyone else is saying as I believe we are hoping for rate stabilization rather than a decline. I would inquire with the lender that you are speaking to and see if maybe they have an interest-only option as well as the buy down. 

You might be able to save a little money on the front end by doing an interest-only program for a couple of years while rates are higher and partner that with a reduced prepayment penalty. It could optimize your cash flow right now and put you in a position to do a rate and term refinance here in a couple of years.

 Hey Jonathan,

I am aware of one lender that can do it, but they would still require 10k down, but fees are reasonable. Are you hoping to purchase without an appraisal or would you be okay doing those as well?

I have a couple of friends and clients who have tried them and, from what I've heard, similar experience to what @Amere Mack had experienced. The product is real and solid, but getting to the finish line might be a little tough, especially on anything long term.

The main one we utilize is GroundFloor, they have some really good programs with 12-18 month terms and bundled fees. I would be happy to help walk you through them if you want to DM me or connect.

Correct, for most PML, especially institutional sources, that amount won't be high enough to lend, especially on any kind of second position. Looking at the total loan size as compared to what you need to get out might help as a few small SFR portfolio lenders would take total loan amount into consideration over the average price per property.

You would also run the risk of wavering property values on the appraisal, plus the appraisal cost per property. There is some up front risk, but I think it would be doable by just refinancing.

Hey all,

Just got back from my (and my firm's) first BPCon down in Orlando. Amazing time and will DEFINITELY be planning to get to Cancun next year.

Looking for the best way to get started. I would like to start investing soon, but my full time is brokering for Hard/Private money loans. I'm trying to figure out the sweet spot between utilizing the space to expand my client base, while also not sounding too, spam/sales-y. Any advice? 

Thanks!