All Forum Posts by: Alex Bekeza

Fix and Flip Line of Credit Youtube Video

@Joe Splitrock Correct.  I mentioned the Dakotas because of population.  I really cannot originate a commercial mortgage in a town of less than 25k people or within 25 miles of a town with 100k people. In these types of towns, a local bank's commercial department might be the best bet.  Detroit/Chicago/Flint because of local economics.  I should have distinguished. 

I'm not an expert as to why this is the case but many lenders list the same small list of states on the list where they don't lend.  Most common you'll find ND, SD, TN, UT and VT.  I believe TN is considered a "brick and mortar" state meaning you'll need a physical presence in that state to lend there.  I'd like to learn more about why these states get blacklisted by national wholesale lenders but I'm assuming its just a bunch of red tape that makes it tough to do business.  

@Jay Hinrichs I think table funding is very interesting.  Not something I've done myself though.  Maybe someday.  Perhaps I'll reach out for some advice when I reach that cross road.   

@Jay Hinrichs I originate a good amount of commercial mortgages nationwide myself.  I never say 50 states because nobody wants to lend money in places like the Dakotas, Detroit, Flint, and a few other places with super tight lending laws like Utah and TN.  I'm only licensed in California but like you said many national wholesale lenders as well as hard money lenders will allow you to originate under their license.  A few of these lenders don't even have retail divisions meaning the only way they issue loans is via brokers.  

I feel like I provide value even to those people too far to meet in person because their typical "mortgage guy" in town has been doing this forever (too long) and has no idea what's going on in the Non QM and investor world.  

Some of my best clients live across the country from me and we work together on a consistent basis.  I will say it is possible to build trust through transparency and good communication.  

@Jay Hinrichs Thanks for sharing.  I've googled several "lenders" I've found on BP only to immediately find links to "Ripoff Report" and other fraud articles from the past.  Amazing how many people do this, go to jail for it, and come back out and do it again.  

Truthfully, common sense is the only way to avoid these types of people.  To be honest, I don't even like to entertain borrowers reaching out to me who type in all lower case and only send one sentence responses/introductions like that guy.  

BP does an ok job of taking care of these people in a timely fashion and I think they'll get even more aggressive over time.  At least I hope. 

As a Loan Officer, I'm honestly always expecting people to try and linkedin/facebook stalk me or google my NMLS which is great!  I'd do the same thing if someone read one of my posts and reached out in an online forum like this to see if they could help secure financing.   

@Thomas DePaul 70% is going to be the standard from 9/10 banks but I have of one lending source who entertains 80% on mixed use purchases only problem is the loan minimum is $250k...  If you come across a similar deal and want to see if we could qualify for 80% let me know.  

For 80% LTV expect to have to have over 700 FICO and experience managing/owning commercial property.

@Mark Creason He's talking about FHA 223(f). They do 87% LTV. @Jim Macedon They allow up to 7.5% in Subordinate Debt on a case by case basis.

Couple of key points on this product:

Minimum Loan Size is $1 million

Experience is required so @David Acosta 's point of partnering is typically the best idea

Property must debt cover over 1.17. With such a high LTV loan which requires mortgage insurance you may have a tough time finding a deal that would cash flow.

Oh wait here's the best part of this program.....

Average processing time is 6-9 months!  lol anyone else still interested?

In my opinion..... you're 100 x better off finding a principal partner and coming into a 5+ unit investment with at least 20% down.  

@Claire Pember Hope this bumps your post up a bit.  

Our brokerage offers Fix and Flip Lines of Credit for experienced flippers with at least 2 Flips under their belt. The line typically has an exposure limit of 5x the borrower's liquidity and can be used to draw 90% acquisition and 90% renovations (75% ARV).

Feel free to reach out anytime and I hope we can do some business together and get those homes sold in SD!

@Tracy Horn I'm always impressed with flippers getting in down below 32 degrees!  

What terms did Bank of Odessa offer you?

@Andrew Smith Totally, I've strongly encouraged him to create a profile.

I can only really vouch for people I've dealt with first hand but always eager to support my fellow BP contributors! 

Interest Rates from 6.99%-9%. IO Payments!

Please know for Construction Financing:

We fund 60% land acquisition without permits

We fund 75% land acquisition with permits in hand

We fund 95% hard costs to build (no soft costs which include but are not limited to plans, specs, permits, grading, soils testing, architect, engineering)

We fund 75% LTV/ARV

We will fund the lower of the two land acquisition + hard costs to build OR LTV/ARV whichever is lowest

Please know:

Construction financing for Recourse is funded as follows:

We will fund the acquisition to escrow

We will fund the hard costs to build to a 3rd party fund controlled account for you to draw against as you “complete” your build based off of each line item on your budget

You will call Granite which is the 3rd party inspector once you have completed portions of your budget and are ready for your inspection and release of some funds. Please note; you must have line item 100% completed in order to receive the 100% of that line item draw

You will be charged interest payments on the entire funding “Acquisition + Hard Costs to Build”. We do not do balance accrual at this time.

You have 12 months to complete the spec build. You are eligible for two (2) three month extensions at a 1 point cost each upon review of your file

Please note you will fund your initial hard costs we will reimburse work completed

Please know for Fix & Flip:

Rehab Fix & Flip Recourse

We fund up to 90% acquisition

We fund up to 95% rehab budget

We fund 75% LTV/ARV

We will fund the lower of the acquisition + rehab OR LTV/ARV whichever is lowest

You will call Granite which is the 3rd party inspector once you have completed portions of your budget and are ready for your inspection and release of some funds. Please note; you must have line item 100% completed in order to receive the 100% of that line item draw

You will be charged interest payments on the entire funding “Acquisition + Hard Costs to Build”. We do not do balance accrual at this time.

Please note you will fund your initial hard costs we will reimburse work completed

Please know for Fix & Flip and New Construction:

Multi-Family/Mixed Use

We fund up to 80% acquisition

We fund up to 80% rehab

We fund up to 70% LTV/ARV

We will fund the lower of the acquisition + rehab OR LTV/ARV whichever is lowest

Please note: Multi-Family/Mixed Use properties will be constrained to a loan amount equal to the lower of calculated cash flow, cost or valuation requirements. Mixed use properties with average individual residential units valued greater than $250,000 per unit are not required to meet cash flow requirements, however are subject to cost and value requirements.

Please know:

All Borrowers Must Sign an ACH form with docs – funds automatically withdrawn from account for monthly IO payments on each transaction