All Forum Posts by: Chris Kendrick
Chris Kendrick has started 32 posts and replied 191 times.
Post: Private money lender, scam?
- Posts 191
- Votes 21
Post: Private money lender, scam?
- Posts 191
- Votes 21
Post: Private money lender, scam?
- Posts 191
- Votes 21
Just wondering if this private money lender is to good to be true, i found it on my facebook group, its from crown lending with website at loandirectllc.com, they ask me if i had a property yet , i told them no, i just said pp- 120k, rhab- 40k, all in at 160k they said
LOAN REPAYMENT SCHEDULE
Loan Balance:$160,000.00
Adjusted Loan Balance:$160,000.00
Loan Interest Rate:3%
Loan Term: 30 years
Monthly Loan Payment:$674.57
Number of Payments:360
Cumulative Payments:$242,843.13
Total Interest Paid:$82,843.13
80% ltv on Rehab and this is 100% financing so no cash out refinancing
Note: The monthly loan payments was calculated at 360 payments of $674.57
IF YOU TOTALLY AGREE WITH THE TERMS LISTED ABOVE, KINDLY SUBMIT A SCAN COPY OF YOUR VALID ID CARD AND A RECENT PROOF OF INCOME RECEIPT FOR VERIFICATION BEFORE WE PROCEED FURTHER WITH APPROVING THIS LOAN.
Your Satisfaction Is Our Priority.
Anyone have ides
Post: Cash out refi
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months
@Chris Kendrick Did you pay cash for the property?
Yes paid cash for a property
@Chris Kendrick Then you can still do a conventional loan using delayed financing right now. Assuming a single family home the constraints for delayed financing is you can borrow up to what you paid for the property plus closing costs/pre-paids up to 75% loan to value. So, if you paid 100k, and the appraisal is 150k with 5k in closing costs/pre-paids you could borrow 105k max. This is under 75% of 112,500. If the appraisal was 125k, you could only borrow 93,750.
Lets say the appraisal was much higher like at 200k. At that point it might make sense to utilize a strategy we use all the time which is to get a bridge loan for your cash out to take away the delayed financing restrictions. In that case we would lend you 150k pulling the cash out up to 75% of the appraisal. We would then refi you into a conventional loan right away using the same appraisal. This gets you around the delayed financing restriction AND the new 12 month seasoning requirement because seasoning ONLY applies to cash out loans. In this case the conventional loan is NOT cash out.
So doing brrrr method, i cant get my rehab cost back? So i paid cash for property at 120k, rehab cost 40k, all in for 160k and appraisal came in at 220k, how can i can get all my money back with delayed finance
You can only get what you paid for the property plus closing costs/pre-paids on delayed financing. So, in your case you could borrow/get back 120k plus closing costs with delayed financing. So you cannot get the 40k in rehab costs back using conventional delayed financing.
But, you could do the second option I mentioned above. using a 220k appraised value we would potentially do a short term bridge loan with no pre-payment penalty at 165k, giving you the cash back. Then turn around to refi into a 30 year fixed conventional loan with no pre-payment penalty right away using the same appraisal. So, you have your cash back out with no seasoning requirement AND the long term fixed rate.
So does hurst lending finace in NC?
We do not lend in NC. But, you can pitch your source who has likely never thought about it.
Post: Cash out refi
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months
@Chris Kendrick Did you pay cash for the property?
Yes paid cash for a property
@Chris Kendrick Then you can still do a conventional loan using delayed financing right now. Assuming a single family home the constraints for delayed financing is you can borrow up to what you paid for the property plus closing costs/pre-paids up to 75% loan to value. So, if you paid 100k, and the appraisal is 150k with 5k in closing costs/pre-paids you could borrow 105k max. This is under 75% of 112,500. If the appraisal was 125k, you could only borrow 93,750.
Lets say the appraisal was much higher like at 200k. At that point it might make sense to utilize a strategy we use all the time which is to get a bridge loan for your cash out to take away the delayed financing restrictions. In that case we would lend you 150k pulling the cash out up to 75% of the appraisal. We would then refi you into a conventional loan right away using the same appraisal. This gets you around the delayed financing restriction AND the new 12 month seasoning requirement because seasoning ONLY applies to cash out loans. In this case the conventional loan is NOT cash out.
So doing brrrr method, i cant get my rehab cost back? So i paid cash for property at 120k, rehab cost 40k, all in for 160k and appraisal came in at 220k, how can i can get all my money back with delayed finance
You can only get what you paid for the property plus closing costs/pre-paids on delayed financing. So, in your case you could borrow/get back 120k plus closing costs with delayed financing. So you cannot get the 40k in rehab costs back using conventional delayed financing.
But, you could do the second option I mentioned above. using a 220k appraised value we would potentially do a short term bridge loan with no pre-payment penalty at 165k, giving you the cash back. Then turn around to refi into a 30 year fixed conventional loan with no pre-payment penalty right away using the same appraisal. So, you have your cash back out with no seasoning requirement AND the long term fixed rate.
So does hurst lending finace in NC?
Post: Cash out refi
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months
@Chris Kendrick Did you pay cash for the property?
Yes paid cash for a property
@Chris Kendrick Then you can still do a conventional loan using delayed financing right now. Assuming a single family home the constraints for delayed financing is you can borrow up to what you paid for the property plus closing costs/pre-paids up to 75% loan to value. So, if you paid 100k, and the appraisal is 150k with 5k in closing costs/pre-paids you could borrow 105k max. This is under 75% of 112,500. If the appraisal was 125k, you could only borrow 93,750.
Lets say the appraisal was much higher like at 200k. At that point it might make sense to utilize a strategy we use all the time which is to get a bridge loan for your cash out to take away the delayed financing restrictions. In that case we would lend you 150k pulling the cash out up to 75% of the appraisal. We would then refi you into a conventional loan right away using the same appraisal. This gets you around the delayed financing restriction AND the new 12 month seasoning requirement because seasoning ONLY applies to cash out loans. In this case the conventional loan is NOT cash out.
So doing brrrr method, i cant get my rehab cost back? So i paid cash for property at 120k, rehab cost 40k, all in for 160k and appraisal came in at 220k, how can i can get all my money back with delayed finance
Post: Cash out refi
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months
@Chris Kendrick Did you pay cash for the property?
Yes paid cash for a property
Post: Cash out refi
- Posts 191
- Votes 21
With new seasonal period of 12 months for cash out refi on brrrr , only option is a dscr loan for around 7.5% at 6 months, my question is that if the property is paid off with no mortgage, do I still have to wait a year to cash out refi with a bank or can i do it at 6 months
Post: BRRR vs Conventional
- Posts 191
- Votes 21
Quote from @Scott E.:
Quote from @Chris Kendrick:
Quote from @Scott E.:
Quote from @Chris Kendrick:
Quote from @Scott E.:
The difference between buying a turn key rental property and doing a BRRRR is..
-TURN KEY RENTAL: Buy, rent, repeat
-BRRRR: Buy, rehab, rent, refinance, repeat
If you're up for a remodel then a BRRRR is still a good strategy. It will help you learn how to buy a deal under market value, how to add value through renovations, and how to manage a remodel. But when it comes time to refinance you will probably be disappointed. Values are dropping, and rates are up. This is that part of the BRRRR method that is broken right now.
All properties can cash flow. Using leverage is where it gets more challenging.
But if you bought a $200k single family house cash and rented it out for $1,700 per month, you'll have around $1,300 per month in cash flow after paying taxes, insurance, maintenance. 7.8% return on your money.
Ok rent will not be that high around here, be like 1300, plus who has 200k in cash laying around, lol
I could rattle off at least a dozen people that I know personally who are in that financial condition or better. There is a lot of money out there in the world. And a lot of those people like to park their money in real estate.
Ok so they are rich, most people are not
Post: BRRR vs Conventional
- Posts 191
- Votes 21
Quote from @Mark Munson:
Quote from @Chris Kendrick:
Quote from @Scott E.:
The difference between buying a turn key rental property and doing a BRRRR is..
-TURN KEY RENTAL: Buy, rent, repeat
-BRRRR: Buy, rehab, rent, refinance, repeat
If you're up for a remodel then a BRRRR is still a good strategy. It will help you learn how to buy a deal under market value, how to add value through renovations, and how to manage a remodel. But when it comes time to refinance you will probably be disappointed. Values are dropping, and rates are up. This is that part of the BRRRR method that is broken right now.
Just because something is at market value, doesn't mean it doesn't cash flow. Even 100% financed turn-key properties can cash-flow, it is just market and price point dependent.
Unless you get a real cheap house that is turn key. But good luck with that