All Forum Posts by: David Bilandzija

@Robert Rodriguez  whoa, those are some significant rehab costs.  What's your estimated after repair value after doing $350k of rehab?

@Annette Barnett what is the significance of 6.75%? You can get close to that but most DSCR programs are hovering in the 7's for higher LTVs, >75% and terms generally include a prepayment penalty. To forgo the prepayment penalty or keep it at minimal length the tradeoff will be a higher interest rate. You gain some flexibility to refinance down the road if and when rates decline. Good luck!

I’d make the drive for a topic like this.  Any future plans?

@Kevin Aranha  Excellent event Kevin. Please add me to your email list for future meet ups.  

@Nick Bandiera Your options are limited. First time home buyers generally do not qualify for DSCR loans. While not an absolute rule, for the most part DSCR lenders avoid working with first time home buyers because of perceived occupancy issues, not too mention you have no mortgage trade lines or experience. Lenders don't want their borrower's moving into the subject property for a number of legal and financial reasons. There are ways around this though. You could acquire the property with a hard money lender, stabilize it and then refinance into a DSCR loan after reaching the seasoning requirement for using appraised value. Lowest I'm aware of is 90 days. You could also partner up with someone that is experienced or owns their home to avoid the barriers to entry. Taking on an experienced partner will qualify you for a higher LTV. Good luck.

Hey @Chris Thomas the private lenders I work with can offer up to 90% loan-to-cost.  Essentially 10% down for the acquisition and 100% of the rehab, assuming it doesn't exceed 75% of the after repair value.  This kind of leverage is reserved for investors with experience.  Expect a larger down payment as a first timer (closer to 20% down); rehab budget is still included.  

Another important factor to consider is the seasoning on your appraised value after rehab is completed. Seasoning is basically the time you have owned the property. DSCR lenders vary on their value seasoning requirements. The earliest seasoning requirement I'm aware of that combines favorable terms is 3 months. Some DSCR lenders go farther out at 6 months.

 Agree with Dave.  Try adding features that make it standout.  

@Daniel Cerda Agree with Brittany. I'm approved with several nationwide DSCR lenders and the minimum loan amount is generally $75,000 (at maximum LTV). $55,000 is the lowest loan amount I'm aware of, but the asset must have a minimum value of $100,000. Gonna be tough to have your cake and eat it too on this one.

@Stephen Andrew Mercieca Try Zillow or Redfin.  Set search filter to multifamily.

@Christin Nguyen  Ask for the seller credit as @Tim P. and @Lydia S. recommended.  Consider being a little bold and asking for an amount above what you need.  Basic negotiating tactic.  Don't go crazy with it.  Ask for $3000 and try settling at $2100.