All Forum Posts by: Connor Hibbs

Hi Eyal,
You should be able to find some additional lenders in bigger pockets itself under the "Lenders" tab. I do offer financing myself in Texas as well if you'd like to see what any rough scenarios may look like. 

Also, are you mostly looking for DSCR refi's/ purchases or are you looking to BRRRR in the area too?

Hi @Samuel De Leon, I'd be able to help here if you'd like. I'll shoot you a DM, but the loan size we can offer will be based off the amount of completed flips you've done in the past 3-years. The max that we'd be looking at here is 90% of purchase + 100% of rehab, assuming 3+ exp in the last 3-years. If this would be your first investment property, you'd be looking at 75% of purchase + 100% of rehab, capped at 65% of the ARV.

Hi Gene,

You'll likely be looking at 80% of the purchase max with 100% of the rehab and a rate in the 10's or low 11's. This is due to the heavy rehab and is assuming that you've got at least 3 completed rehab loans in the last 3-years. Keep in mind that for most lenders that having a 500k rehab budget will result in additional reports and more than likely a Feasibility study to support that the work being done will add the amount of value that you're looking for, but also to make sure that the budget supports the scope of work that you're looking to do.

Hi Wendy, For first time flippers you should be looking at about 75% of purchase + 100% of rehab funds. Your loan may also be capped at 65 or 70% of the after repair value. Rates at this point should be around 12%, but the with experience your terms get better quickly. By 3 experience you should be around 85-90% of purchase and have rates in the mid 10's.

Hi Luca,

a rate/term bridge with rehab budget would be your best bet. there would be no PPP's since it's a bridge, you'd be able to pay off the existing lien, and you'd get your funds to do some renovations to the property.

I should be able to help with this, but I'd need more information on the property and how much in rehab you are looking to do.

Hi Adam,

what are the rents and annual costs for this one? Also, are you looking for advice on the property, financing options, help securing/vetting tenants, PM recommendations?

I think there's a good chance that we will see little movement from the FED to see how the economy reacts to their last cuts and to see how the incumbent president's policies impact the country. My personal opinion is that rates will go down slightly with the recent rate drop and stay there until around March 2025. From there likely a short spike due to the market being more reserved as the policy starts to take hold and lenders opting to raise rates a bit to be on the safe side while the policy settles itself in the new economic environment. I'd predict that by the start of the third quarter next year the FED will have opted to lower by another 25 or 50bps and rates will truly start going down. Cutting down on gov't spending and the pulling jobs back into the US should help offset some of the tariffs, but it will come down to which items exactly do get tariffs put on them and to what degree the tariffs are (10%/20%/50%).

Overall, my guess is that rates will go down for early next year, rise during the middle quarter-third of the year, then fall slowly afterwards. It will certainly be an interesting year though.

Hi @Philip Jones,

For the refinance aspect, the main factors will be the FICO Score, cash flow of the property, and as-is value.

A Higher FICO will let you get a larger loan size and lower interest rate.

Good Cash Flow will ensure that your property will be profitable for you and enable you to get the max loan size that your FICO allows for.

The As-is Value will play an important role in making sure that you meet the minimum requirement for a DSCR loan of 100k, but also in making sure that the rehab work that has been done provided significant value add. Most purchase and rehab loans will be capped at 75% of the ARV and cash-out will typically max out at 80 or 75% depending on where you go.

If you'd like to see some examples of what pricing on an 80% or 75% cash-out would look like just let me know and I'd be happy to help.

This could be a great way to get started as you'll be at the property everyday and by living in the property not only will you be there firsthand to oversee the work being done, but you may also find new potential issues while living there.
If you're looking to do this, I'd recommend a 203k loan to purchase the property and get some rehab funds. you'll just need to live in the property for a year before being able to lease it out to a tenant.

Hi @Krupa Bhavsar, I'd be happy to get you some rough terms to see where your rate would fall on this. The main factors for your rate will be the LTV% that you need for your rate/term, your FICO Score, and the cash flow of the property. I'd assume that you should be in the high-mid 6's with a solid FICO and no rate buydown, assuming a near max rate/term loan size. I've sent you a DM with the information I'd need if you'd like a rough quote.