All Forum Posts by: Brandon Beardt

 Hi Ben,

If you're looking for a program that doesn't require any type of personal income verification, DSCR is one option you should explore. As long as the rent is greater than the property's projected new Principle/Interest, Taxes, and Insurance payment (PITI) then the property can qualify. You won't have to submit any sort of personal income docs such as Tax Returns. Pricing will depend on other factors such as LTV, FICO score, loan amount, etc. It's a business purpose loan, therefore the liability won't show on personal credit, regardless if you're closing in a LLC or your personal name (with us, can't say the same for others). I'd suggest shopping around as there are a ton of DSCR lenders on this platform that have the ability to help you out. Rates/terms and fees will vary lender by lender, so you'll want to know exactly what you'll be paying for and what to expect before committing anywhere. Best of luck.

Hi Anthony, I would recommend looking into cash out refinancing one or both of the properties in TX and KY. You have a strong equity position in both properties and can use the combined cash out proceeds to help with the down payment of your new primary home (assuming it's enough). The two properties you own in CO do not have enough equity in them for a refinance to make sense, IMO. This way, you don't have to sell any of your investment properties and you'll have the funds  needed for the down payment of your new home. Wishing you the best of luck!

Hi Faith, what sort of financing are you looking for? Conventional, Non-QM, DSCR, etc? Is this for you or for your clients? Either way, there are a ton of lenders nationwide that would be able to help you out. Shop around and find which ones stand out most to you.

The lowest loan amount I've seen allowed by an institutional DSCR lenders is around $60K. If you're looking at deals that require a $90K loan amount, you shouldn't have too much of an issue. You mentioned you're a new graduate, do you own your own primary or any other investments? If not, shop around for other DSCR lenders & make sure you'll be able to qualify as a first time homeowner with the programs offered. Some don't check this requirement while others will. Best of luck.

 Hi James,

I'd recommend finishing up the rehab to 100% and getting tenants in the property with a lease in place before starting the actual refinance process. Having tenants in place before starting the refi process opens you up to more lending opportunities as most lenders will want to see the property occupied/stabilized when starting the refinance process. I would also recommend shopping around for lenders at this time so that your choices will be dialed in by the time the units are fixed and tenants in place. Many lenders have different guidelines and requirements so you'll want to know which one's you can have in your pocket. Best of luck to you!

 Hi Darnell,

I don't believe you'll be able to find a DSCR loan for Plymouth Rd. The value and loan amount is too low for institutional lenders. The lowest loan amount I've seen allowed is around $55K with minimum property value/purchase price at $75K, just for the subject property. For Santa Roa Dr, you may have an option there if it can meet those minimums. Considering you're planning on putting $15K into the rehab, you could benefit by looking into short-term FNF/FNH financing options as well, if you don't have the rehab funds available. That way you can refinance once the rehab is complete and get a loan based on the new appraised value of the property. Just a few options to consider. If those numbers are accurate, it seems you have DSCR and FNF/FNH options at your disposal. Best of luck!

Would be interested! [email protected]

Hi Josh, there is a DSCR option that allows you to get a full 75% LTV cash out refinance based on the NEW appraised value of the property with only 3 months of Title Seasoning required. We've done plenty of these for investor such as yourself that are able to expedite the renovation process and want to get the sweat equity out of the property ASAP.

 Hi Jamie,

Congrats on taking the next step in your RE investing career! You are correct in that all lenders will use your personal credit score for qualification when purchasing your next rental property. Your credit score will determine which leverage threshold you're able to go up to (max LTV%) as well as the pricing/interest rate for your file. If you plan on purchasing your first property with an LLC, you will not have the ability to use conventional financing. You'll need to look into more of business purpose type lending options (DSCR, commercial, Non QM, etc). For most of these types of loans, there is no DTI calculation. Therefore, you don't have to worry about credit lines showing up on your credit report or anything like that. Most just want to make sure the asset/collateral itself is a worthy investment and that the numbers make sense. All in all, there really isn't anything stopping you from getting a loan for your first rental (unless you don't have the funds needed for closing or your FICO score is below the specific lender's minimum requirement). Wishing you the best of luck!

 Hi Amy,

Your contingencies on the purchase contract protect you from events such as this. A loan/financing contingency would give you the opportunity to pull out of the deal if the lender couldn't pull through. That being said, as Caleb mentioned, if the contingency is waived, then you are no longer protected.