All Forum Posts by: Chris Kendrick
Chris Kendrick has started 32 posts and replied 191 times.
Post: Just to competitive out there
- Posts 191
- Votes 21
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing, there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Bud Gaffney:
@Chris Kendrick how about a DSCR option loan
Rates are around 8, trying to get rates low as possible, without waiting a year
Post: Cash out refi seasonal period
- 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 @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Wanted to do an 5/1 arm cause interest rate was at 5 percent
Then that is not a conventional program. they would have their own guidelines around delayed financing and it apparently is waiting a year. Pro's and con's and can not always have it all.
Oh ok, so what is the rate with the conventional program, is it around 6.5
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
yes, you can when paying with cash with the limitations I mentioned above. You can hypothetically do an ARM but you will not want to as conventional non-owner occupied ARM's will be higher then the fixed rate and conventional does not allow interest only. You could do those things with a DSCR but again there are negatives with those loans as mentioned above.
Wanted to do an 5/1 arm cause interest rate was at 5 percent
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
The way delayed financing (Delayed financing is only available if paying cash) works for non-owner occupied is that you can get back UP to what you paid for it plus closing costs/pre-paids. I will use numbers of a delayed financing we just closed: Purchase price 150k. Improved the property, and the new appraisal came in at 209k. This was a non-owner single family so max cash out on delayed financing or any cash out loan is 75% with fannie/Freddie. So, we can lend up to 156,750 as that is 75% of 209k. 150k was the purchase price plus 6750 of closing costs and pre-paids into the loan.
The above is for conventional. You can also do a DCSR loan within 3 months. The rate will be higher but not a huge amount higher. BUT, you will have higher closing costs PLUS pre-payment penalties up to 5 years on most DSCR products. Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting. DSCR can be a useful product, we do a lot of them, but the pre-payment penalty should not be glossed over. A conventional loan will NOT have a pre-payment penalty.
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
So i can do a cash out refi , if i did a cash buy on a property only, and i can get a cash out for the purchase price or ARV price
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
And keep in mind these new Fannie/Freddie seasoning requirements ONLY apply to cash out loans. In other words, you can still use the improved value to refi what is owed with no cash back.
So, what we do is a double close essentially. We do a cash out loan for you on a bridge loan with no pre-payment penalty pulling out the cash, them immediately refi that new loan amount as a rate/term into a conventional loan for the lower rate/no pre-payment penalty conventional loan. So, again, it just takes a good LO, and a plan.
I see you don't lend to NC
Post: Cash out refi seasonal period
- Posts 191
- Votes 21
Quote from @Jay Hurst:
Quote from @Chris Kendrick:
Cash out question
My plan was to buy property using my heloc, whole lot cheaper than Hard money or private. Fix it and Then do cash out refi and pay my heloc back in 3-4 months.
I was about to get qualified with credit Union and come to find they will do cash out but only on the purchase price. That’s not going to work. They will do appraisal after a year. Seasonal period was a year.
How is anyone getting all there money back?
@Chris Kendrick Credit unions are not going to be the best place for something like this. For example, we have a program that we fund out of own balance sheet that will allow you to pull out funds using the improved value right away. No waiting period at all.
What is the program??
Post: Cheapest mortgage loan
- Posts 191
- Votes 21
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
Quote from @Chris Kendrick:
Quote from @Chris Seveney:
@Chris Kendrick let’s say your rate is 6% today but in 5 years it’s an arm, housing pricing has dropped 15% so you are under water and at the 5 year mark the loan resets to 12%.
Then what do you do with an underwater property and your payment more than doubled
who is the lender? cap at 7% wow. thats an unbelievable deal. your sure its not prime + 7%?
I am a little bit confused in this aspect as well.
Is this SF rental? is this a DSCR rental or conventional ?
Even with conventional the number is bizarre.