All Forum Posts by: Dallas Sauer
Dallas Sauer has started 8 posts and replied 74 times.
Post: Partnering with a contractor to be able to get funding for new construction?
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
Quote from @Mike Klarman:
The Ground Up programs are the tougher to get into than the Free Masons. Here's the catch with those programs:
1) Getting in the program as a 0 exp in GUC is impossible
2) Even when partnering with a builder, that builder will only get credit for the builds he's done for himself. If he has done 50 new builds for clients he gets 0 exp for that. Kinda crazy, but that's how it works.
3) The loans themselves have a nightmarish processing period. Everything but your blood type will be asked for, the builder will need to have their house in order and be in good standing as well. Plans and drawings and specs will be asked for.
4) The ground will need to be build ready in most cases. Most will only fund on the vertical build. All that underground work that is needed may fall on you.
5) In most cases, usually the investor buys the land and gets it build ready and then they go to the lender with plans on the build. The lender will then cash you out 50% - 60% of the raw land value but the vertical build money goes into escrow and works much like a rehab fund. You complete work, you apply for a draw, funds are released.
It's almost like lots of lenders who have GUC programs are telling you that you need to get a few done in cash first and prove you know to get these done and are in bed with the right builder and then they will look at your deals.
Stay away from the banks and get a Hard Money New Construction Loan. Most of these problems will go away.
Post: Need lender for 29 condos
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
Are they Warrantable?
Post: Looking for advice on cash-out refi options
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
Looks like DSCR is the way to go as long as the numbers work. We offer a 90 day seasoning option for this. Some lenders will lend based on the 1007 rent and not the STR rent so be aware as that can have a big change in DSCR number.
Post: Other and best ways to use built up equity In properties that are free and clear
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
A potential option would be to do either one or two loans and include the new property and the property you already own. Then the down payment money can come from your other property.
Post: Best Loan for a Cash Out Refinance on a Duplex in an LLC
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
With decent credit on DSCR you can be in the high 7s low 8s today
Post: Funding for flip in CO Springs? Great liquidity, 6-12 loan, experienced, Credit 660
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
How much experience do they have? If enough, we can do 90% of purchase 100% of rehab.
Post: Hard Money Referral for Pennsylvania portfolio
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
This looks like a good opportunity. The price per property may be a little low for most lenders.
Post: Lender needs a long term lease for refinance - can I lease to my LLC? Other ideas?
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
Another option is a DSCR loan. You don't have to have a long term lease in this case but the amount you can borrower is based on the 1007 income of the property if it was rented as a traditional rental.
Post: Other and best ways to use built up equity In properties that are free and clear
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
We do blanket DSCR loans all the time if that is what you are looking for. Lines of credit have been few and far between in the last 12 months.
Post: What percent of lenders would allow borrowed funds for a borrowers down payment?
- Lender
- Phoenix Arizona
- Posts 89
- Votes 51
Quote from @Mike Schorah:
I was reading that it’s not exclusively forbidden.
Specifically referring to Pace Morby’s Gator Lending, for a sub to deal for instance
It really depends on the lender. Most wont want to see you bringing in funds from somewhere else but at the same time some do not source funds.