All Forum Posts by: Alex Patton

I know there are hundreds (thousands probably) of lenders out there that offer a DSCR product. I am posting here because I am looking for some advice or recommendations from other investors who can recommend a lender that they had a pleasant experience with. We are a small partnership with 4-5 properties currently, but we are growing and hoping to find a reliable lending partner that we can do repeat business with.

About 3 months ago, we successfully completed a BRRRR deal where we had excellent numbers, over a 1.25 ratio at 75% LTV, our guarantor partner has an 800+ credit score, and we had no issues qualifying for the loan. However, the process was extremely cumbersome, communication was inefficient, and the loan fees were inflated compared to other deals I have seen from fellow investors.

We will be ready to begin the refinance stage of our next project in the coming days, as renovation is finishing up and we are screening tenants. We have a somewhat specific wishlist for lending requirements and terms that I will highlight below. Any recommendations or advice on how to attain this would be very much appreciated. We currently own the property free & clear.

This is what we're looking for:

Credit screening for Primary Guarantor partner only (81% ownership stake)

Minimum 75% LTV on refinance, we've heard of 80% LTV on a DSCR purchase but haven't been able to find anyone to do that on a Refi

0% Origination fee

Title in LLC name

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $12,000
Sale price: $225,000

Light Cosmetic Renovation, Bought on market with negotiations to $30K below asking, and used just over $11K to do a complete cosmetic renovation: paint, flooring, light fixtures, cabinets, countertops, bathroom fixtures and vanities. We were able to do this because the property was already in good physical condition and at only 1000 sq ft, the materials needed were at a much lower quantity than we would normally need.