All Forum Posts by: Colin McMahon

Hi Gabe, 

These numbers and terms seem fair and competitive. The only element I'd reconsider is the 5-year pre-payment penalty. I'd be happy to run the numbers and cross-check for you. I'll send you a DM to connect!

Hey @Tyler Rabanus

DSCR loan amounts consider both the debt service coverage ratio and the appraisal value. The property's income ($3000/month) and the appraisal value ($220k) are both crucial. With a 1.25 DSCR, lenders will calculate the maximum loan amount based on the lesser of the two. Given your scenario, you might recover more capital with DSCR due to the higher rental income, but as other lenders have advised, your max will be 75-80 LTV.

Hope this helps! Happy to run the numbers for you. Feel free to DM for more info. 

Hey @Tara Miles! 
Yes, many lenders will allow a cash-out refi less than 12 months seasoning. Between 6 months and 12- they will evaluate based on the price at purchase and then after a year, they will consider any additional rehab value. With your excellent profile, you'll likely qualify for these programs with less than 12 months of seasoning. 

I'd be happy to assist and run the numbers for you. Feel free to reach out for more info and I'll shoot you a DM to connect. 

Hey @Kelly Stanton,

Like Cassidy rightfully mentioned, you should look for lenders that are flexible with rental history requirements and use AirDNA data for short-term rentals like your Airbnb. Additionally, find lenders who offer short-term seasoning options, which allow refinancing shortly after rehab completion.

I'd be happy to assist! Feel free to DM me for more specific recommendations or to discuss your options in detail.

Hey Derek,

I understand your preference for insights directly from other investors. Just to share, with a pristine file (low LTV, high credit score, solid reserves, etc.), our Investor DSCR program offers competitive rates and flexible terms. Feel free to reach out if you want specific details after consulting with fellow investors.

Best of luck with your deal!

Hi Daniel, 

Welcome! You'll find a lot of helpful information here and as it relates to financing - please feel free to reach out, I'm happy to assist. 

How many units are you thinking about for your first multi-family? 

I would recommend no more than 4 for the first, just for the ease of financing and getting the best terms until you're more experienced in this area. 

Also - what areas/states are you looking into? Most of my clients invest in Florida, North Carolina, Texas, and Arizona because of the price point and steady income flow. 

Looking forward to connecting. 

A lot of great advice in this thread - while Greg is right, it's a common mistake, and the right lender won't have you running into this issue - I always recommend buying in an LLC.

As you expand your portfolio, employing LLCs and DSCR loans can be a strategic move. DSCR loans focus on the cash flow generated by the property rather than your personal DTI. These loans are typically not reflected in your personal credit as long as they remain in the LLC's name. This strategy can be particularly effective for investors like yourself looking to manage and expand their holdings efficiently.

Hey Gerard!

I'm not sure where you are in your investment journey but if you click the link in my signature, it will take you to the company website where you can pre-qualify in 5 mins or less (soft-pull so no impact on your credit score) and then I can give you a call and help guide you through your investment plan. 

Hi Kurtis, 

Have you found financing for this project as yet? If not, based on your terms, I believe I can be helpful - with a quick closing. Feel free to reach out and schedule a call with me, I'd be happy to assist. 

Great post AJ, 

To add to your insight:

1. DSCR loans have become extremely popular amongst foreign national investors because they do not require income verification to qualify or U.S. credit history (many use local credit history from their home country to verify creditworthiness), allowing for a more efficient underwriting process.

2. International investors should expect an interest that's 1-1.5% higher than U.S. citizen primary mortgages because of the added risk to the lender

3. International investors should expect to provide a downpayment of 25-30% for investment properties. Local banks in their home country (for eg. Canadian investors) may be able to provide a slightly lower downpayment if they can prove that they have enough INCOME (not assets) to cover the monthly mortgage payments in addition to any existing debt. 

4. Max LTV to expect for purchase is 75% of the purchase price, and for refinance, 65%.

It sounds like we serve similar clientele. I'd be happy to connect to see how we can aid each other's efforts. Please feel free to reach out and I'll send a DM to connect.