All Forum Posts by: Brandon Teachout

It was recently brought to my attention that I was trying to use a term that wasn't recognized by lenders because it is actually an investor term. I thought that was pretty funny and got curious about other peoples similar experiences. Does anyone else have a funny story about first starting out in real estate investing? Using the wrong terms or coming in too confident?

Quote from @Jonathan Taylor:

@Brandon Teachout I speak from a lending perspective. STR and MTR are investor terms not lender terms. I have no lender in my network that differentiates between the two. When I submit refis, we accept one year leases or MTM leases with a history of tenant being there over a year. My opinion does not mean it is not possible and we are in a changing market but I have not seen nor have a I spoken to a lender who would take a MTR over a STR. As far a UW goes, they are one of the same.

@Jonathan Taylor Ah ok, that's great to know, I really appreciate the insight! :) And makes me think my next post will be commonly mistaken "lender terms vs Investor terms" haha

So would these lease terms be taken into account on all loan types as far as new purchases or refi or HELOC?

Quote from @John Barrett:

@Brandon Teachout You might also reach out to Rain City Capital or Certain Lending. Rain City is a traditional hard money lender and Certain Lending is a DSCR lender.

John

Thank you @John Barrett! I will certainly look into Rain City Capital, they already sound like they are my neighbors! :)

Quote from @Jonathan Taylor:

@Brandon Teachout Sounds like you are doing short term rental. Generally a lease less than one year lease is considered short term. This STR lending market is taking a beating. If your property can qualify under long term market rents, that would be your best bet. My lenders are not lending based on STR numbers. This has been happening over the past few weeks.

So is there no difference to a lender for any lease terms under a year? There is a lot of talk around "STR" vs "Midterm rentals" so it would make sense to me that those are two different things as STR would be under 90 days and MTR would be 90+ days. Have you seen anything that would indicate new loan terms based on these mid term leases?

I understand that you're currently saying that it is STR under a year but is that subject to change based on new strategies in investing?

I have previous long term leases but I'm not sure that I will return to that model now.

Thank you!

@Jay Hinrichs I really appreciate this! I will absolutely keep this list close and start reaching out. :)

@Jonathan Taylor Thanks for asking! I currently have a primary that I started house hacking by converting the detached garage into a 700sqft 1b/1b unit that I rent to travel nurses, $2,500 a month.

Step two is underway with a remodel, new kitchen, floor and adding a shower to the second bathroom. I’m planning to rent the rooms out individually to travel nurses and create a house for traveling professionals. My house is less than .5 to a major hospital in the area. 4 beds x$1,200=$4,800+$2,500=$7,300 cash flow each month. This is a strategy that I’d like to repeat next to each major hospital in my area.

The property that I found and would like to purchase will be used as my new primary, and I plan to convert a large barn into a 2bed/1bath DADU to rent out as well. $3,500 month.

The rental numbers I’m basing this off of are my current unit is rented and I had multiple inquiries at that price point, and the comps on Furnished finder reflect this as well.

Does this sound like it would be a candidate for a DSCR loan, this is a new term for me.

Thanks in advance!

@Erik Estrada Thank you for the info, I did not know that hard money lenders are back up right now.

I have been working hard to cover all my bases for a hard money loan, so I’m glad to hear I’m on the right track. Beyond the foundation I’ve established, what more should I be looking for to facilitate a loan?

@Andrew Bang Thank you! I will definitely look them up.

I have found a deal that I am trying to get funded by hard money/private money. I have an investment strategy and multiple exit strategies along with a lot of equity in my primary that I'm willing to use as collateral. I have contacted Flynn Family Lending and waiting to hear back from the application I submitted. I'm looking for a backup plan incase that does not work for me, any suggestions on who to talk to or a route to go for hard money funding? Thanks in advance and I hope to connect with more of the greater Seattle (mostly north) area investors. Stay warm out there!

Quote from @Brian Kantor:

Lucky for you, there is a brand new BP book on this exact topic :)

Check out "30 Day Stay".

Good luck!

 Thanks for the link! :)