All Forum Posts by: Deborah Wodell

Quote from @Christian Wamsley:

I think this is a great question, Deborah — and one that comes up often.

The truth is, there’s no one-size-fits-all answer. Going direct can absolutely work when you already have a strong relationship with a lender, your deal fits neatly inside their box, and you’re confident in how to present it.

Where brokers tend to shine is when deals have nuance — maybe credit or experience isn’t perfect, maybe leverage needs to be higher, or the project has multiple moving parts. Instead of starting over with five or six lenders, a good broker can match the deal to the right funding structure and keep communication flowing between both sides.

From what I’ve seen working with investors, a solid broker often becomes a key team member — not just finding capital, but aligning the right funding with the investor’s broader goals. That alignment can mean better terms, fewer surprises, and faster closings when things get complex.

Of course, not all brokers operate that way. The bad experiences usually come from lack of transparency or poor communication, not the model itself. A good one should act more like a funding strategist — saving time, clarifying expectations, and sometimes even structuring deals that wouldn’t otherwise get done.

So for me, it’s less about “broker vs. direct” and more about who helps you close better, faster, and with less stress.

Thanks for this, Christian. I totally agree as it really depends on the deal and the investor’s goals. A good broker isn’t just about finding capital, it’s about strategy, timing, and matching the right structure to the project. When a deal doesn’t fit neatly with a direct lender, having someone who can navigate multiple options and keep things moving smoothly can make all the difference.

Quote from @Clayton Silva:

I have worked for both a brokerage and an IMB.  I prefer the IMB model infinitely more.  More control, better communication, more exceptions approved, better staffing, and comparable or better pricing on rates and loans.  More options too (not true for all IMBs but at least where we are at, it is so much better).  IMB is great too because we can still broker loans if we are unable to fund the specific deal in house.  

Direct banks like WF, JPM, etc. tend to have best rates and pricing but extremely tight buy boxes so unless the client is a perfect fit, they just deny a lot of people and have very few options.  

Thanks for breaking that down. That makes a lot of sense having more flexibility and communication is huge, especially for investors who don’t fit the “perfect box.” I’ve noticed the same direct banks can offer great rates, but if your deal or profile isn’t exactly what they want, it’s almost impossible to get approved. The IMB model seems like a much better fit for creative or off-market deals where you need some leeway.

If the other lenders come back with better terms after you’ve chosen one, it’s worth looking at, especially if the timeline isn’t tight. Just make sure you’re comparing apples to apples, closing costs, prepayment terms, and any fees can make a big difference beyond just the interest rate.

From what you’ve shared, it doesn’t really seem like refinancing makes sense for your situation. You’re only planning to stay in the house for 30 months, and with $13k in closing costs versus roughly $230 a month in savings, it would take well beyond your timeline to break even. A lot of the costs your lender is including, like escrow and taxes, aren’t really one-time expenses since you’d pay them anyway, so your actual payback period is even longer. It also seems like the lender’s fees are higher than what you should be seeing, so you could probably shop around if you wanted, but even then, the short-term hold still makes it a tough call. Personally, I’d probably pass and put that money toward the house or another investment instead.

You've thought this through really well, but I'd take a closer look before jumping into a HELOC. It can definitely work short-term, but since it's tied to your current primary, you're taking on new debt right before selling, and that could impact your debt-to-income ratio or cause issues if the sale drags out.

A bridge loan might actually make more sense here, even though the costs are higher upfront. It gives you more breathing room if the transition between homes takes longer than expected, and it doesn't tie up your current property quite the same way a HELOC does.

If you're confident your home will sell soon and you're comfortable with the short-term risk, the HELOC is fine. But if there's any uncertainty about timing, I'd lean toward a bridge loan or even negotiating a rent-back period after selling, just to keep things flexible.

If you have enough equity in your current home, the HELOC gives you the freedom to move forward without rushing the sale and since interest is only paid on what you use, it keeps things manageable during the overlap period.

The only thing to watch is timing and market conditions. If your current home takes longer to sell, make sure you're comfortable with the HELOC payments in the meantime. Also check if your lender charges any prepayment penalties or early closure fees.

From a tax perspective, since both homes are personal residences (not investments), the main thing is tracking potential capital gains and how long you’ve lived in the current property before selling.

You’re in a tricky spot, but balancing convenience and cost here will save a lot of stress later.

I’ve noticed more investors saying they want to go “direct to lenders” instead of working with brokers. I totally get that no one wants extra fees or middlemen, but I’m curious about your experiences and thoughts on this.

For those who’ve gone direct, did it actually make things easier or cheaper for you? Or did you find that having a broker helped you get better terms or faster results? From what I’ve seen, brokers can often access multiple lenders at once and find creative ways to get a deal done that a single lender might not. But I also know some people have had bad experiences with brokers who didn’t communicate well or didn’t add much value.

I’m just interested to hear from both sides, investors, lenders, and brokers....... what makes you prefer one route over the other?

First, make sure the Power of Attorney and trust documents clearly let you sign for the owner and the trust. Some lenders allow that, some don't, so you'll need one that's okay with POA for investment properties.

Next, confirm the trust can hold title and that everything’s in order.

Since the property has a DSCR over 1.5, that's a strong point. Most lenders like to see at least 1.0 or higher.

You’ll want a lender that allows cash-out refinance for DSCR loans, especially if the funds will be used for rehab. Not all do, so it's something to ask up front.

Also check credit score, reserves, and LTV requirements since they can vary.

Your best move is to contact DSCR or non-QM lenders that handle properties in trusts and allow POA signers. Ask them directly if they'll do a refinance with cash-out for rehab under those conditions. I can also check with mine if you'd like.

Quote from @Justin Chan:

Please contact me if you are capable of processing a 40 yr dscr loan in the state of RI. Thank you. 

 I'd love to get you terms for this. Messaged you. 

Better to just have atleast have 20% down and another 10% for closings costs. From my experience, most often than not, those who got 100% funding with no exp, their deal did not go exactly as it should have. 

Hi Robert! Since you don't have a first hand experience and given a bad credit,  most lenders will require you to have a partner on the loan with a good enough experience on multi fams and credit. With a deal like this, 70-75% is the general terms you're gonna get, I'd love to work on it with you on this. You mentioned your partner has investors who would be willing to shoulder the dp...Would anyone of them who has prior experience dealing with muli-families be also willing to get on the loan with you for credit and exp. A large deal like this, lenders would want someone with exp.