All Forum Posts by: David Atis

Hey Brian, you’re targeting some of the best rental markets in Fairfield County. Seems like you’ve got a solid plan and network in place. Excited to see how your first deal shapes up, keep us posted!

Investment Info:

Single-family residence private money loan investment.

Cash invested: $50,000

I provided a short term private money bridge loan using my own capital to help an investor. The loan was structured with no monthly payments, a fixed percentage of the loan balance to be paid upon loan payoff, and secured by real estate, giving the borrower flexibility.

This experience created a win-win outcome for both sides.

What made you interested in investing in this type of deal?

I was interested because it gave me an opportunity to put capital to work in a secured, short-term position while helping another investor.

How did you find this deal and how did you negotiate it?

A mortgage broker reached out to me for HML for a borrower/investor that reached out to them. While this loan amount wasn't available in my company's guidelines, I was able to structure a scenario that greatly benefited both myself and the borrower/investor.

How did you finance this deal?

I used my own capital to fund the bridge loan.

How did you add value to the deal?

I provided speed and certainty of funding.

What was the outcome?

The loan performed as agreed and was repaid in full.

Lessons learned? Challenges?

I learned the importance of clearly defining exit strategies and timelines up front. Communication throughout the loan term was also key to making it a smooth transaction.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Kerr Law Firm PLLC, a law firm in Maitland, Florida was pivotal in structuring a contract agreement and provided title services to place a lien on the property during the loan.

For just the down payment, a heloc can work if you have enough equity in your current 4-plex, this can be flexible for either a heloc or heloan. So I would have conversations with the lenders that offer either of these to see what options are available.

Or you may be able to get up to $50k or 50% of your vested balance from your 401k. You pay yourself back, but repayment terms change if you leave your job. Have a conversation with them and compare your options to the home equity route.

The best fit usually comes down to how quickly you need to close and what your refinance plan looks like.

Joe, I have worked with a lot of greater Philadelphia area investors on flips and rentals, especially since I've lived in the area. My advice is, in your search for a solid and reputable lender, look for someone that will give you more than just funds as speed, clear terms, and flexibility on draws can make or break your profit.

When you’re vetting, I’d look for:
Local market familiarity (some areas can have its quirks)
Transparent fees and no surprise clauses
Consistent funding timelines, especially if you buy at auction or wholesale
Good communication during draws and rehab to keep projects moving

There are options out there that can be flexible on deal size, especially if the asset has strong cash flow or upside. 

Hi Cory, great question. I'm glad you’re thinking ahead.

With regards to early conversations with lenders, it's smart to start preparing yourself to get pre-qualified. Lenders will want to see not just your current financials, but how the underwriting of properties supports the debt requested. That means understanding metrics like Debt Service Coverage Ratio (DSCR), loan to cost (LTC), and stabilized net operating income (NOI). Having a baseline knowledge of how your future deals will pencil out from a lender's perspective gives you a serious edge when it's time to submit a Letter Of Intent.

It’s not just about being ready, it’s about speaking the lender’s language when you are.

Hi Sandra, you're in a solid position. Way to go adding value and generating cash flow. Instead of focusing solely on product type, DSCR vs. cash out refi, think in terms of capital efficiency and return on equity, aka ROE.

You're earning $6K/year on $60K equity, so ROE ≈ 10%. Not bad but as equity grows and cash flow stays flat, ROE declines. That’s called equity drag, and it’s why many investors refinance to recycle equity into more deals.

Your current HELOC at 9% is expensive, especially if it's interest only. A DSCR loan with amortization and a fixed rate can improve your long term position, lower risk, and free up your HELOC for the next investment.

Also if selling would trigger heavy taxes, consider a 1031 exchange or talk to your CPA about cost segregation or depreciation strategies to defer gains.

My suggestion is to focus on improving debt structure and ROE, not just product & rate shopping. Let me know if you want a side by side comparison on your options.

Appreciate you putting this out there, Matt. You nailed some key points, especially #3, #5, and #8, relationships and local knowledge are everything in this business.

As a hard money lender working with investors throughout Florida, I see firsthand how important speed and certainty of capital are in this market. Orlando isn’t just a strong tourist destination, it’s a fast moving investment environment where the right financing can make or break a deal.

For anyone new to investing here: it’s not just about finding a deal, it’s about being ready to close. That’s where having the right team: agent, lender, property manager, and contractor really pays off. I always encourage investors to look beyond rates and ask: Does this agent and lender understand my strategy? Can they help me scale, not just close one deal?

Orlando’s got the fundamentals, strong population growth, tourism, and year round demand. Pair that with smart planning and reliable capital, and you’ve got a solid foundation to grow a real estate business.

Thanks again for the solid post, Matt. Always good to see local professionals bringing value.

You're exactly right, qualifying without using personal income is the main benefit of a DSCR loan. But there are a few other perks too, especially for investors:

Speed & Simplicity: Less paperwork since lenders focus on the property’s income, not tax returns or W-2s.

Scalability: Easier to grow your portfolio since it doesn’t tie up your personal DTI (debt to income ratio).

Flexible Ownership: Many lenders allow you to close in an LLC, which is a big plus for asset protection. 

Rental-Based Approval: The focus is on the property’s cash flow so if it’s rented, or has strong market rent, you have options.

Happy to dig deeper if you’re comparing this route with conventional or just getting a feel for what’s possible.

Hi Christina,

Here's a clear breakdown to help you understand how to access the equity in each property, depending on your goals, especially using it for a down payment on House 4:

House 1: Primary Residence

HELOC (Home Equity Line of Credit):
Pros: Flexible draw, interest only payments during draw period, good for short term needs.
Cons: Variable rates, payments can increase based on how much you draw.
Best for: Keeping your lower first mortgage rate intact and accessing funds as needed.

Cash-Out Refinance:
Pros: Fixed rate, lump sum, can have lower interest rates than investment property loans because it's your primary residence.
Cons: Replaces current mortgage rate (which could be at a lower rate).
Best for: If you want to simplify into one loan.


House 2 and House 3: Investment Property 

DSCR Cash-Out Refinance:
Viable option here that doesn't use your personal income to qualify.
Based on potential rental income (current rent, market rent or appraiser’s rent schedule).
Typically max 70-75% LTV.
Documentation is minimal.

Happy to help if you’d like to walk through potential numbers or talk through how others structure this kind of move. There are a few ways to approach it depending on timelines and funds needed, just let me know if a second set of eyes would be helpful.