All Forum Posts by: Brandon Beardt

 Hi Bud,

You'll find plenty of DSCR lenders here in the forums that can help you out! You can also find some in the Network tab above. I suggest doing research on them, reading their reviews, and seeing what they have to offer. You'll want to partner with a broker/lender that you can trust, build a relationship with, and succeed with. Every lender's DSCR program is very similar across the board, however, most have different guidelines and higher/lower pricing adjustments based on the actual loan parameters. You'll have to determine what's best for you and your goals - best rate, highest leverage, turn times, fees, and everything in between. Seeing as you already have 30+ units, I'm sure you know what you're doing. But nonetheless, best of luck to you!

 Hi Wendy,

I'm not familiar with the Lakeland area so won't be able to help you out regarding area insights or closing attorneys. Regarding the DSCR loan, I would imagine the lender/broker you're working with would be able to give you more information regarding what their specific program entails (qualification metrics, loan terms, etc). The general gist is that if you have good FICO and the property is projected to cashflow, you're good to go. It's obviously more intricate than that, but you get the idea. There are a ton of forum posts that explain DSCR as well. Rates for DSCR between 7.5%-8% at 75% LTV are good. I see around the same depending on the different loan level pricing adjustments per lender. I would imagine 80% LTV for DSCR is much more expensive. Best of luck to you!

 Hi Nathan,

The DSCR program is utilized for more long term financing. Most if not all DSCR loans have some sort of prepayment penalty, usually 5 years that could be brought down to 2-3 with added cost. If your goal is to purchase the property, do some small renovations, and then refinance to get cash-out of the property within 6-12 months, you may be better off with a short term bridge loan. They are interest only and most don't have prepayment penalties. This way, you can easily refinance and get the cash out you qualify for after the reno is complete and the new lender's required title seasoning period ends. Hope this helps and best of luck!

 Hi Fernando,

I don't see why other lenders were requiring that you would need to occupy it as your primary residence, seems strange. I guess it would depend on the type of lender you are using and their guidelines/rules. If you were to take a cash-out refinance on the two investment properties that are free and clear, there would only would be a new lien/loan on those properties themselves.

 Hi Fernando,

There are a few different strategies you can explore in order to utilize the equity that's built up in your 2 investment properties. You could try and find a lender who can offer you a HELOC on those investment properties. There aren't that many of them, but I'm sure they're somewhere out there. Alternatively, you can do a complete cash-out refinance on both properties and take out the amount of equity you're qualified to pull out. Both options give you what you want, access to the equity to utilize for additional investment property purchases. The cash-out refinance option will most likely be the easiest for you to attain. Best of luck!

 Hi Gabriel,

Congrats on looking to purchase your first FNF! Maximum leverage in this realm typically depends on your previous RE investing experience, either buying or selling investment properties within the past 36 months. I don't think I've seen a program where the lender is offering 90% LTV of the current as-is value, especially if it's your first investment property. Usually I see offerings of up to 90% LTC or 70% LTV of ARV with the rehab 100% financed. There are quite a few different FNF programs out there so it would definitely be beneficial for you to research the different options you have. Best of luck to you!

 Hi Brice,

I'd recommend working with a mortgage broker and going over your current situation and what you are trying to accomplish. Mortgage brokers have access to several different types of lenders who have many different loan products themselves. There are a wide array of different loan programs out there and depending on your specific scenario, some programs would make more sense for you than others. This will also save you the trouble/time of having to contact multiple banks/financial institutions. Best of luck to you!

 Hi Carlos,

Yes there are quite a few loan programs out there that are specifically designed and geared toward BRRRR deals and investors. These are usually shorter in term, 12-24 months (but you typically don't have to/need to carry the loan for that long), and interest only with a fixed rate. You'll get partial financing for the acquisition (purchase) as well as 100% financing for the rehab. Once you complete the rehab, you can easily refinance into longer term financing. It's very common practice and there are many forum posts regarding this type of financing. Best of luck to you!

 Hi Josh,

To answer your question, yes, it is possible to refinance a HML into long term financing. Most people who intend to rehab properties purchase the property with a HML, rehab the property, and once the rehab is complete, refinance into long term financing based on the new appraised value. Just be cautious of different lenders Title seasoning requirements (some lenders require you to be on Title for a period of time). Best of luck!

 Hi Manuel,

There's no 1 easy way to get started. Like you said, I'd recommend talking to a few different lenders/brokers to go over your current situation and your RE investing goals for the new year. This will help you gain a better understanding of the loan process, what lenders expect/look for, and the tools that they have to help you succeed. I'd also recommend looking through the Bigger Pockets forums, reading some different posts, and LEARNING. There are many tools available on this platform to help people such as yourself. Take advantage of the resources and best of luck!