All Forum Posts by: AJ Exner

Greg,

Could definitely be a tricky situation and probably feels a bit like the old 'square peg, round hole' situation. Depending on the amount and how much rehab, I could see it being an issue with it being your first.

As well, some lenders might have an issue with it being in LA, especially in Hammond with potential flood risks. Which HMLs have you spoken to? I might be able to recommend but I don't want to step on any toes.

Good luck!

Hey Diandre,

Are you looking to bundle them together and do a cash-out portfolio refinance, or are you wanting to keep them as single assets and refinance them that way?

Great advice here, and a good HML will have an account rep or someone to communicate with you through the process so that you know.

My guess is also a leverage cut due to ARV, but you never know.

Good luck!

Hey Brant,

I've heard of a few, but making sure that the appraisal comes back correctly has become a burden for me on these types. 

Its pretty well known that DSCR lenders won't lend to mobile homes, even if they are affixed, but then being on the same page with the lender on manufactured vs. mobile vs. modular has been a hurdle in my experience.

That being said, would be happy to connect to see if I could help.

Good luck!

Agree with @Brandon Croucier on this one, its an underwriting guideline that you would need to dig into before you get too far. If you discovered the issue before paying for the appraisal that could hopefully save some costs (in case the appraiser is with the wrong AMC).

Pre-vetting with the lender on rental history/AIRbnb/1007 as well as seasoning could help. 

Happy to help connect if it would be beneficial.

Good luck!

Sounds like a good plan, should have plenty of options available.

I would be cognizant of any group you talk with on two areas, the location of the property including any potential concerns of it being 'rural', as well as the minimum purchase price and/or minimum loan amounts. If your deal has some healthy margins, you should be okay, I would just be aware and upfront with whomever you pick.

Good luck!

If you are deadset on refinancing into a conventional loan, then you will likely run into seasoning issues. The fact that you have made such good time on the rehab of this one means that you will not be able to refinance on its new value until you have owned it for 12 months, otherwise they will go off of the 'value' that you bought it at.

Whereas if you refinanced it into a 30 year DSCR loan, you would likely be good right now, or worst case most are good at about 90 days. Honestly, I don't think you will be sacrificing a lot if you choose DSCR over conventional these days, and it will give you access to your capital/equity a lot faster.

Happy to connect if it would be helpful.

Good luck!

Completely agree with @Katie Smith, utilize that tab and other BP resources, but make sure when you talk with a lender, that they are upfront with their minimum property value that they will lend to, as well as their minimum loan amount. You will flirt with the bottom limits of some groups in Cleveland, so make sure you know before you BRRRR.

Good luck! Happy to help if I can.

Hey Paola,

Do you currently have a tenant in the property? Just make sure you have proof of rental payments if you do from the last couple of months and you should be good to go no matter what direction you go.

Good luck!

Hey Rod,

Congrats on where you are at! As the great philosopher once said, "mo' money, mo' problems".

I think the reduced leverage plan is a good choice to free up some DTI but obviously the extra fees on DSCR could start to add up a little. I guess my question would be, if each deal would cost an extra 2% going DSCR would it be worth it to be able to scale and accomplish what you are hoping to accomplish? Feels like the most straightforward plan to get from point A to point B and sometimes it pays to KISS

Acknowledging that I don't know all the numbers you are working with, but if each deal costs an extra $3k-$5k, but because of the efficiency of DSCR loans and the ability to ignore your DTI, you could maybe squeeze an extra deal or two a year in? I guess that is where hopefully the LOC could help you there.

Could you pair the LOC up with a DSCR lender? Use the LOC from the CU for the purchase of new properties?

I don't know, certainly takes money to make it, but I would worry about when the CU would start saying 'no'. Rate seems about right, so I wouldn't get too hung up on that (DSCR would be about there too, maybe even a little less based on that leverage).

Sorry, a bit rambling there, but would be happy to connect and talk through things if that would help? Happy to assist where I could.

Good luck!