All Forum Posts by: Caroline Gerardo

@Derek Brickley lenders with giant hearts  lol

$2000 rents at that sale price is not real. 

DSCR is for rent ready property, long term rental. Appraiser will do a rent survey that you pay for. Condos in Shaker Heights maybe in that price range for one unit that rents for $595 max PITI is $613 but with HOA it doesn't 1.1 DSCR

You need: good FICO, property ready to lease at close, 20%  down and closing of your own money in the bank.

There are lenders who go that low but all the costs are the same as a $200000 loan so you will be unhappy to learn that $6000 in title/tax/insurance/appraisal/lender fees/appraisal.... to get in. The flat fees at the bottom are painful. Lenders make almost nothing on small loans so that hurdle is real as a little one takes the same work as a big one. 

Others gave you cash out as a solution. Say you are purchasing, then where is the money? DSCR is for established investor with rent ready property, it is not a no doc loan. What else do you have to show for down payment/closing if a purchase or reserves if a refinance?

1% of loan amount = .125 to  .25 in rate. Generally does not pencil out. Many lenders require points upfront to avoid early payoff losses. Lender doesn't "negotiate" or bargain with you- your mortgage middle FICO, property type, down payment, terms determine the rates.

MAP Lenders in Nashville- Chase closed a loan recently. Needs to be in the millions to talk about it. 

Guessing it cannot cash flow, can borrower show net income to make up the gap? 

DSCR you need 20% down generally...

VA is a wonderful tool but you need some w-2 income recent as rents wont cover all your PITI an whatever bills you have. OR Transcripts work around small or no income while in college but a job offer and first check or a month of payroll checks is needed

10 and 12 units are considered commercial, probably not DSCR that BP lenders speak about. Commercial appraisal to start off is $3000, and you may need two. I recommend sources.

The 7 unit can fit into NonQM lenders DSCR, and is easier with many choices. Market rents determined by appraiser and backed by leases. Property has to be in habitable rentable condition. 20% down if can cash flow with PITI.

Lending is segregated into 1-4 then 4-8 and more than 8 is generally commercial. The two commercial deals MAYBE can be tied together to get the dollar amount up into the millions range that CMBS wants to see. Commercial does not do small transactions...

What is your ownership history, goals, time frame....??

Depends on servicer and what the original note says, generally nope. You cannot get a bank HELOC concurrent (no one offers them), so it's be a family member and you have to qualify with the payment on the second which must be longer than 60 months before it is due, so that rules out hard money... Seller can never carry it with a VA assumption it puts veteran in double trouble.

So buyer needs w-2 job for past 24 months and current, good FICO, bank assets in checking and savings

Follow Ken Selmer from Impresa on Linkedin. (He's not on BP will ask him to sign up but he's the CEO and busy). He posts competitors advice, construction advice, gives a free graduate school class of reading material. I built an Impresa house. You can't tell it's not stick built- after the CZU fire, we faced narrow roads but we plotted the steps, and up in three days, and it appraised okay. 

@Kelby Schimming fitting into the triangles and star shaped boxes that lenders want is the femur bone that supports investors. Using other people's money is a way to success.