All Forum Posts by: Brandon Beardt

Hi Robin,

The shortest Title seasoning period I've seen is 90 days if you're looking to refinance based on the property's NEW appraised value. You can time it right and start the process before the 90 day period, however, you'll have to close on or after the 90th day to meet guidelines. Best of luck.

You can use the proceeds from a DSCR loan for anything business purpose. You won't be able to get a DSCR loan on your primary residence, however. DSCR loans are solely for investment properties.

Hi Avery,

Questions such as minimum FICO score, maximum leverage thresholds for LTC & LTV ARV, and minimum/maximum loan amounts are important to know when speaking with lenders. Also asking them about what minimum information they would need to price out any sort of deals/scenario's for you would be helpful. Always ask about the loan process and what to expect, as some lenders can operate differently than others. Lastly, ask about loan costs/lender fees so that you are aware of the financials of the entire deal. Happy hunting.

Yes, I would say many of the DSCR lenders on here can help with loans under $100K. The lowest I've seen is loan amount down to $50K with minimum appraised value/purchase price at $75K. Due your due diligence and research on the lenders - read reviews and get a sense of what the process would be like and what to expect with each lender you speak out to. Best of luck.

Hi Shivani, from a lender's standpoint, most investors that look for value add deals gear towards bridge/fix and flip type loan programs. These programs are different from conventional/residential loans in that they give the investors the capital they need to help with the purchase and the rehab of the property. Once the renovation is done, they look into long term financing based on the new appraised value of the property, allowing them to recapitalize most if not all the money they put into the deal. Then they REPEAT the process. It's the BRRRR strategy at it's finest.

Hi Sean, the shortest title seasoning for DSCR refinance based on new appraised value that I've worked with is 90 days.

Hi Sam, the lowest property value/purchase price that I've seen for institutional DSCR lenders is $75K. Not sure who else can go lower than that. The BRRRR strategy has seemed to work well for some of these lower value properties from my experience, especially with the DSCR take out loan. Best of luck!

 Hi Jonathan, I don't know of any loan product that would allow financing on properties VALUED at under $75K. From my experience, the minimum purchase price AND appraised value of a property has to be at least $75K for the lender to take it. If either # comes in lower, it's dead. You may find better luck/options with local banks/CUs or even private money in the subject property's market area, but with nationwide institutional lenders, you will find that most (if not all) have no appetite for them. Best of luck though!

 Hi Ola,

You can do a refinance before 90 days of Title seasoning, however, leverage will be based on original purchase price + verified rehab. If you're looking to refinance based on the property's NEW appraised value of the property, you'll need to wait the 90 days of Title seasoning. Best of luck.

 Hi Renee,

That's great you're looking to BRRRR local in LA/Orange County. Keep in mind, the higher property value/loan amount could cause DSCR qualification issues, especially at higher leverage. However, if the #'s work out, that's great. Make sure to work with someone who can run the #'s for you to confirm the DSCR can work. Best of luck.