All Forum Posts by: David Bilandzija

As Jack mentioned, 75% LTV is generally where DSCR lenders will top out in terms of max loan amount. In reality your max loan amount will be under that level because of lower cap rates in So Cal. I'll PM you terms for multifamily DSCR lenders and full doc bank options.

@Grace Walser investment or primary?

Gotcha, so the lock period refers to the length of time the lender will honor the quoted interested rate during your loan application.  

It would be a good idea to ask the lender about the prepayment penalty on the loan.   If you plan to refinance/sell in the next few years it could have a financial effect.  

what are you seeing on the quote that makes you nervous?

@Emil Kostov Maybe not the best rate in town but consider the following...

1. you are being offered 80% loan-to-value as a first time investor (that's a plus) if you are wanting max leverage

2. by industry standards, $68,000 is a small loan amount - not many lenders that will have an appetite for something that small

3. FICO is under 700, that's gonna hurt your interest rate 

@Constancia R. A 25% down payment is realistic for 5+ unit multifamily. Consider taking on a partner if you don't want to pass up on the deal.    Depending on the lender, you may also be required to show 6 months of post closing reserves.  Good luck. 

Clayton is spot on.  

It never hurts to read between the lines and ask for as much supporting documentation on how seller arrived at their figures.  Ask questions, get leases, read them, talk to the tenants, etc.  Basically, kick the tires.  

@Alon A. Buyers can easily get hoodwinked in a situation like this. Gross living area is what matters most to a lender and the appraiser they hire.  Gross living area aka GLA is your above grade, finished, permitted area.  GLA will determine which comps get used.  Appraiser will look at the basement area and assign +/- value based on comps with similar design.  

@Brandon Collins Getting your license is a plus.  Writing your own contracts and collecting a commission on your own deals is icing on the cake.  Get that license! 

Best to encumber both properties with a blanket loan. The lender I use in these situations has $50,000 minimum asset value and $75,000 minimum combined loan amount. Max LTV is 75% with a 30 year fixed options as well as 10 year interest only.