All Forum Posts by: David Weintraub

These are 20-30 yr loans. When you're purchasing in LLC you're not getting same options as individual.

But that's what Visio, CoreVest, Athas, Civic, etc are rolling out, and people use them. I have local NJ Credit Unions who have better rates, but their qualifications are a bit stricter than the HML-type folks.

@Joe Villeneuve - There are "Hard Money Lenders" who have loan products in the 5.5-8.5 range for buy and hold. I'm not suggesting using a short-term, HML, for a hold product. I'm talking about the longer term programs these lenders are rolling out.

Your "skin in the game" is your downpayment on the property you're investing in. Whether you've owned a home, or not, isn't even a factor. Neither is your DTI, etc.

Lenders will look at your credit.  Some have a credit floor, of say 600, but others just look at it to see "why" your credit score is what it is.  It could be 520.  If the reason is you didn't pay a mortgage, or a constantly late on CCs for no reason, then they'll probably balk.  If it's because you had good credit, faced an emergency medical issue, maxed out your cards, but are working to pay them back, then they very well might.  

It's like applying for a job, and both the investment property, credit, bank statements, experience, all that is part of the resume.  That's one reason I appreciate Fortune Builders - most of their students approach this like a job, and when they send you a proposal, it's DETAILED!  Btw, I'm not promoting FB.

If it's a flip into a hold, you'll need anywhere between 15-30% of the loan amount on your end.  If the loan is $100,000 to purchase and $50,000 to rehab, with a lender giving you 85% of purchase, 100% rehab, you're going to need approx $25,000-30,000 to do your part of the loan, and the rehab. 

If you're flipping into a buy and hold, and the ARV is $200,000, keeping above numbers, then you can get a lender to give you longer term financing after some "seasoning" of 2-6 months (unless you're using delayed financing, which is all cash, then you cash out more quickly). Say the go for a refi, and get 70-75% of the ARV, now you're getting $140-150,000 back out, which you'll use to pay off the original Hard Money Loan.

I'm making this scenario look pretty, tight, and nice for the sake of ease, but that's the gist.

There are points, fees, interest payments, etc along the way.

But regardless of where you live, whether you own a home, or even have a job, if you can come to the table with a good deal, that fits the lenders numbers/expectations, and you have the financial capacity to do the loan, the loan you will do...

If you're doing one deal, and have the cash, use your own money.  If you're trying to spread out, and take down many properties at a time, as @Nick C. said, we're useful there.  

Can’t you search Phila.gov for property record and get the name?

What are the reasons you’re being told they don’t like the deals? Yes, majority of HML loans are to LLCs for numerous reasons, and if a lender chooses to loan straight to an individual there has to be a good reason. If your loan is 65-70%, or less, of the final value, and credit above 600, likelihood is you can get a loan. Are you meeting these thresholds?

P.S. live in philly but office at Jersey Shore

Meet ups and meet ups That’ll start opening different doors. Matching skills to needs and vice versa.

I think at 5+ everyone is going to want around 20% down.  For the 4 units or fewer, you can get less than that. 

What type of lending you looking for?  How many units?  Terms?