All Forum Posts by: Alex Roter

@Kyle Wegg congrats, nice move! 

Hey @Benjamin Hirsh I know of a DSCR lender who can C/O refinance quicker than 6 months property ownership -- as long as the rehab purchase loan was done with them initially. The subject must be in a non-rural area.

@James Alderman No, you don't need to own the property first, these loan programs can be used for purchases. Also, the subject property can be vacant at the time of purchase, because Lenders will look at market rent comparbles to qualify as income. Months of rental data is not needed because the appraisal will include the rent schedule.

@Chris Whynder I will message you directly for more details

Hope this helps!

Hey @Gabriel L. asset-based loans are great! Since the property being financed is for rental purposes, Lenders consider the subject property as being the 'asset' --not necessarily referring to the assets in your bank account. These loans are qualified based on the subject property and the cash flow it produces. Employment history is irrelevant in these transactions. I'll message you with more details

Hey @Jeffrey Naeger, congrats on your investment! There are lenders who can refinance you into a 30-year fixed DSCR loan (1-day after recording). However, they will calculate the LTV based on the purchase price + improvements made (dollar-for-dollar) instead of calculating the LTV based on the After-Repair-Value.

In order to get maximum leverage, make sure the subject property is leased (not vacant).

Hope this helps

Hey @Charyl J.

As @Joshua Janus mentioned, you can obtain a DSCR loan with low credit scores (or even no credit scores) -- this is usually with traditional Hard Money / Private money lenders.

As @Felicia Lucco mentioned, most (if not all) lenders will still look at your credit history and score. Many Soft-Money lenders have minimum credit score requirements and offer better rates/terms than their counterpart, Hard Money/Private Money lenders.

Hope this helps!

@Christina P. Okay, no worries most lenders would allow a transfer of stocks/mutual funds into a checking account to cover closing costs. Guidelines vary from lender-to-lender. 

HELOC's work great if you need to borrower money for a short-period of time (due to the higher, variable rates). Also, If you intend on paying off the HELOC within a few years, it might make sense to go that route.

However, based on your scenario, it seems like you would probably hold onto the loan for longer than a few years. Furthermore, you wouldn't be spending portions of the balance periodically (and only paying interest on the money used). On the contrary, you'd be using most (if not all) of it at one time to cover the closing costs of the new purchase.

Rates are still low, but they're on the rise. I'm curious what rate you would qualify for on your primary home and what the actual payment difference is per month. What state do you live in?

@Christina P. Hey Christina, it sounds like you've done a lot of research thus far, great job. In my opinion, go with the cash-out refinance on the primary residence because HELOC's are typically variable-rates that adjust according to the market. In today's market, we're seeing constant rate hikes. At least with the cash-out refi, you get a fixed-rate. Also, there are tax benefits when paying points to buydown your interest rate (talk to a tax preparer about this). On the flipside, if you cash out of your stocks/mutual funds, there will be a tax event where you'll have to pay capital gains tax on it (talk to a tax specialist about this).

Hope this helps! 

Hey @Daniel Shuler if the property is leased than you will be able to get higher leverage (LTV). You can refinance a vacant property, but will be limited on the amount of cash-out. As Tarik mentioned, you can hold title in an entity, and be able to set this up in the refi transaction.

Hey @Sina Bigdeli I just sent you a message. We can do these loans either as an Individual or Entity.