All Forum Posts by: Brandon Croucier

Commercial multifamily like this is significantly dependant on experience, how long have you been owning and managing commercial multifamily?

I have a deal for a client that was recently denied by a lender last minute up in the northwest.

The borrower's note is due month end and we are looking for a lender to Perform.

Looking for 1.25-1.3M Loan Amount.

Payoff is $950,000

Colatteral is $2,000,000 16 Unit + $330,000 Land Parcel, $2.33M

Asking for $1.3M, 12% 3 Points to the lender for 12 months, 55% LTV

Super Well collaterized, the borrower is an experienced developer/flipper with a net worth exceeding 5M.

The property is located just north of Portland.

We are needing to close by month end.

If you are going to try and co-broker this, do not bother, I have shopped this at nearly every local hard money firm.

If you have direct capital, feel free to PM me.

Well, how much is the lot for sale for?

At the end of the day; you need more money to do something like this.

MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is X

Add ($550,000 + x ) * .8 = LOAN AMOUNT

You would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project. Something like this would be in the range of needing $200-300k to get done.

Hi Stacie,

As long as we can paper trail the work completed we can do a DSCR Cashout Refinance and tap into that equity once the property is completed!

Financing a commercial MF that runs as an STR is possible.

Appraising a property based on the income is not, whos to say a buyer would STR the property.

A DSCR Loan requires the property to be in LIVABLE CONDITION.

Does it mean YOU would live in it? Of course not, but required items such as electric, water, gas, and plumbing all need to be in working order. The main thing I see when coming across this is deferred maintenance. This needs to be limited and reduced. 

When looking to structure a deal like this, look for a dated property in working condition.

Hi Kathy, at the end of the day the mortgage industry is so vast & wide it's essentially like trying to navigate the Sahara Desert.

I highly recommend working with an experienced mortgage broker who knows the ins and outs of the industry to place you into the most competitive product for you.

More times than not, people save money working with a small shop broker.

You can do DSCR in your personal name in Florida, just needs to be with the right investor.

That’s a killer loan if they are actually offering that.

Seems extremely below market value as even primary mortgages are higher than this right now.

I would beware of a bait & switch on this.

That is tight leverage for an investment 2nd position loan.

A private investor might be willing to do it, it's not going to be cheap at all & will be short-term money & will not be a line of credit to take out at your liking.

What is your rate on the 1st? It might be a better decision to do a 75% Cashout Refinance.