All Forum Posts by: Irving Allen
Irving Allen has started 1 posts and replied 48 times.
Post: Funding my first deal
- Lender
- Layton, UT
- Posts 67
- Votes 7
Stephen,
PM me to talk about some options for you based on the property.
Post: PML Opportunity on Great Property in MN
- Lender
- Layton, UT
- Posts 67
- Votes 7
I believe we can help you. Reply to my email with more details. [email protected]
Post: Commercial financing for MFR 10+ units (no experience)
- Lender
- Layton, UT
- Posts 67
- Votes 7
How well does the property cashflow?
Post: Commercial financing for MFR 10+ units (no experience)
- Lender
- Layton, UT
- Posts 67
- Votes 7
How well does the property cashflow?
Originally posted by @DeAnn Waggoner:
Hello. My name is De. I am here to seek advise. I the the founder/ executive director of a 13 year old nonprofit animal rescue organization in Texas. We have been using my own home but have literally run out of space and are having to turn surrenders away. We need desparately to get about 5-10 acres of property to move our rescue onto but don't have funding to purchase the property. We fully believe that once we have land in our name we can get grant funds but until land is in the company name no grantor will donate. Where can we go to find private investors who will back us? Any suggestions would be appreciated.
Post: Recommendations for financing a SFR package
- Lender
- Layton, UT
- Posts 67
- Votes 7
Brie,
What is your exit strategy?
Are you going to rent out homes, wholesale, lease to own . . .
This will give openings to finance options.
Post: New Member from Utah
- Lender
- Layton, UT
- Posts 67
- Votes 7
Welcome Melanie
Post: WHAT MATTERS MOST TO THE ASSET-BASED LENDER
- Lender
- Layton, UT
- Posts 67
- Votes 7
All asset-based lenders have different criteria, but most share these things in common: (check with your lender upfront so you can factor their criteria into your project)
WHAT MATTERS MOST TO THE ASSET-BASED LENDER: The investor’s credit isn’t as important as the quality of the deal. Numbers matter, but in most cases, not your FICO score.
1. They require a first position mortgage or deed of trust.
2. Loan to value ratios are usually 65% of appraised after-repair value.
3. Loans cover the cost of acquisition and repairs.
4. Renovation funds are not usually distributed at closing. Draws are made upon completion of work.
5. The investor will need “Skin in the game” – meaning the investor is required to bring a minimum percentage or dollar amount to the closing table.
6. There’s always an origination fee and the percentages vary wildly. The can be as low as 1% and we’ve heard of some as high as 12% upfront.
7. Some lenders also require a Deposit to cover the appraisal, title and other legal work. If the loan doesn’t close, unused amounts are returned.
8. Loans are typically short-term which is a good thing because interest rates are higher than rates for owner occupant, traditional loans. Loan terms can be one-day transactional funds, or can have maturities from 6 to 60 months.
9. Some asset-based lenders offer longer-term loans for landlords with rates more favorable for buy and hold income properties.
Loan proceeds can be used for a variety of real estate related activities. Again, check with the lender for specifics. Potentials uses of funds include acquisition and improvements, pre-construction; some also offer refinances (rate/term & cash-out), recapitalizations, consolidations, repositions, partner buyouts and other opportunistic situations.
Everything above falls under the rule of C’s lenders use when making a decision on a funding request.
Asset-based lenders fund Non-owner occupied residential, industrial, multi-family, mixed-use, warehouse, office, retail, hotel, motel, churches, gas stations and land. Word of caution: just because they CAN doesn’t mean they will. Do your homework and make sure their funding model meets your needs.