All Forum Posts by: Dennis Muno

Quote from @Marc Mahadeo:

Good afternoon BP family...

I am reaching out to see if anyone can steer me in the right direction to a lender who has a 30 year product for an investment property.  I think my biggest scare right now is seeing a lot of ads, but not knowing who is legit and who is a scam.  Hoping someone has a good recommendation.  I'm in GA but the property I am looking at is in TN.  

Thank you in advance for your feedback.

 Hello Marc,

A DSCR loan would be the way to go. It would be based on your DSCR ratio(if your rent can cover the PITI- principal&interest, taxes and insurance). To know who is legit, see the reviews for their company as well as some of their loan officers.

Find out their NMLS# and search it on nmlsconsumeraccess.org. You will know who is a legit lender or a scammer. Also note, everybody can tell you a rate. Until locked in, all you have is an idea tt best of what the rate will be

Quote from @Rashid Ghafoor:

I recently passed the MLO (NMLS) Exam. I am looking for a mortgage broker sponsor. My question is, If one is to be strictly commission based, Is finding a broker with mortgage industry similar to finding a broker with real estate? Where any broker will take you since you give them a cut from your commission or pay a fee per transaction.

Yes, you do need to hang your license under a mortgage company if you are an MLO. Always best to research mortgage companies/brokerages for things like compensation, availability of training, assistance on files since you are new, and if they teach you how to constantly get business

Quote from @Account Closed:

I've heard some people are not big fans of condotels as in an investment, but putting that aside, does anyone have any good lenders for the MGM Signature in Vegas? Intending to put 25-30% down. We will use unit as investment and vacation for family and friends.  Any input on best financing options would be appreciated.  thanks in advance.

 Hello Jr,

What is the sales price as well as is the property cashflowing/will it cashflow?  25-30% down should be enough for downpayment+ closing costs.It'll be great if you have some proof the property will cashflow for lenders you speak to. If you don't have that info, lenders may use market rents or other calculations to see what the monthly rent or income may be.

If your FICO is good and the property will cash flow condotel lenders may be willing to assist you and your lending terms for lenders may be good.

It will depend on your FICO and if property will cashflow

Quote from @Summer Whitten:

What lenders are offering HELOCs in Texas?

 Not for investment properties in TX. I believe by law they are not allowed. For HELOCs I'm sure on primary they may be possible in TX. There are many lenders who do HELOCs in TX

Quote from @Jared Born:

Are there products that would pull cash out of multiple properties at once?  Looking for a way to pull some equity out of several free and clear properties with a blanket loan or line of credit.  Any input would be appreciated. 

 I believe there are portfolio cash out refinances. That may be an option for you. Every lender who does these loans will have minimum loan amounts and other requirements

Quote from @Elizabeth Park:

My husband has been in real estate for quite some time, but I decided to join the bandwagon. I am trying to do this all alone so that I can learn better. I have properties I would like to buy in Kokomo, Indiana. I need help in how to get the money. I don't have a W-2 income. The properties I am looking at are anywhere from 70k-200k. I plan on turning them into a midterm rental, worst case keep it as a long term rental. Can you please advise on how and where to get the funds to buy? Thank you!

So, if you are looking to do a purchase only, no rehab a DSCR loan would be the way to go for you. DSCR loans do not use your personal income to qualify, rather your FICO and if rents will cover the PITI(pricipal&interest, taxes and insurance).

If you want to buy and rehab a property to increase value and rent out, a hard money loan would be a way to proceed

Quote from @Darnell Robinson:

Hi all, I've been trying to lock down my first deal and have come across a renovated, 14 unit building in Detroit. The initial price a few months back was $700k but the seller is motivated and is down to $520k. This would be my first deal and I've been searching for financing for the deal for the last few hours. Open to all lending opportunities DSCR, PML, HARDMONEY? I've attached the rough numbers the seller sent me and am waiting on an updated pro forma.

 Hello Darnell,

For a loan to buy like this, lenders will ask what your investing experience is, your amount of cash for downpayment+ closing costs, your FICO, your LLC structure, etc. These will affect your chances of getting financing.

They'll also want information like does the property need rehab or not?

The options you could consider are: hard money, private money and commercial.

If the property won't need rehab: some lenders(not very common) may do a DSCR commercial loan. Or commercial financing will be the way to go.

If you need rehab: Bridge may be the way to go

Quote from @Jake Peetz:

I am nearly complete with my first multifamily purchase and renovation. 12 unit in great area of Jacksonville, FL. I have seller financing on the purchase and funded the renovations through personal credit line that matures in 90 days. Looking for ideas on how to refinance or consolidate roughly 250k into another loan while keeping my seller financing in place on the note. If anyone has thoughts or advice I would enjoy your thoughts or experiences on what any of you have done in this situation. Thank you for your time!

So, generally this would be a commercial refinance. Usually I have seen DSCR refinances where up to 8 units are allowed. I haven't seen a 12 unit DSCR but it may be possible. I'm sure some lenders may have such options.

For a DSCR the rents vs the PITI(principal & interest, taxes and insurance) and FICO will be used to qualify for the loan, never your personal income. Commercial will also do same for a 12 unit but commercial will be the way to go. Ask your lenders if they will do/have a commercial DSCR option.

Since it's commercial, you may get 65-75% LTV for a refinance(will depend on market rents, insurance, taxes, risk assessment, current state of economy, location,etc). You can do a cashout refi if lender will allow, to get some money to payoff your personal credit line and then refi the seller finance- if a lender will agree. Will vary from lender to lender and also their risk tolerance

Quote from @Yusuke Koike:

Hi,

My name is Leo in Illinois. I'm a newbie of real estate business. Does someone recommend a 504 loan to an entry level of investor to purchase a real estate? I formed a LLC last year and it does not produce any profit yet. Should I apply for SBA loan after making a profit?

Leo  

 So SBA loans won't work for just a regular real estate purchase. They are for say, you want to buy a business but the business has some real property. Example a senior care facility. It is a business purchase, although in buying the business you will also be buying the facility too. An SBA would work here.

For buying a regular rental property, an SBA would not apply

Quote from @Shantanu R.:

I am looking to buy a commercial property in NJ & have an accepted LOI . Looking for help/ contacts for commercial financing in NJ. Any leads (banks or brokers ) will be helpful.

Property Details :

- Medical Office 

 - 10 year lease (exp. 12/2032)

- Single occupant

-6000 Sq ft.

Purchase price : $1MM

 Hello Shantanu,

Will the property need any rehab? Are you looking for a long term or short term loan?

Commercial financing will be the way to go