All Forum Posts by: Devin Peterson

Quote from @Tobi Isaacs:

Best rates and terms for a Reno loan? Looking for connections

Tobi, There are a lot of variables that go into this question. Connect with a few lenders and a broker to compare terms. Experience, intensity of Reno and credit will be large playing factors in this type of loan - good luck!

Not going to comment on high or low because a lot of people underestimate the time and work that goes into a loan, underwriting, and tracking docs. etc. Lenders and brokers are paid by the loan amount. To a certain extent, it's not worth it to work on files with tough conditions without a bottom-line base origination fee. So that's probably why you're experiencing "higher" fees. The same goes for lenders and the rate. Loan servicing companies put in the same time and manpower to service a loan that is 90K compared to one that is 900K - there's no difference. That is why rates are higher on smaller loan amounts. I think a greater appreciation for the work lenders and brokers go through needs to be understood more. It's the same case for hiring a highly referred plumber who will fix the leak and a few other things for the right price, or take the new guy no one has ever heard from and your leak has now turned into an explosion. 

Quote from @Andrew C.:

Am penciling out a property and trying to see what our loan options are.
Post rehab, the property will be a 4bdrm 2 bath house, that's a few blocks from a college in southern WI, USA.
Would be rented to 4-6 college students (# TBD). These would be separate 12-month leases.

I'm looking for lenders willing to do a cash-out refi on this (we'd purchase and fund the rehab in cash. est purchase price 90k. rehab 60k. ARV 200k). Any suggestions on who to call?

 Hey Andrew, you have a few options here. Happy to connect and talk about this in detail. 

Quote from @Anthony Prilo:

I recently purchased a home.  I would like to use my old home as a rental property, which has a significant amount of equity.  My apologies if these questions are elementary questions.  I am new at this.  Located in NJ.

Is there a way to refinance my rental property from my residential loan into an LLC?

Am I required to have my rental property in an LLC?

Can I couple my residential loan with landlord insurance?  

Any other tips?

Hi Anthony, great question! Percent put your old home into an investment loan utilizing a DSCR loan. Will be able to qualify off of the rent alone without any income or debt to income ratios. You can close in the business name/LLC here.

You are not required to have your investment property in the business name, however, some lenders and bank may require it if they are a purely business purpose, lending institution who servicing companies, mandate commercial purpose only.

And yes, finally you can get landlord insurance.

I recommend shopping around and comparing a few quotes to get started happy to connect to talk further strategy and detail. Best of luck!

Quote from @Rick Lasica:

Looking to get a second lien DSCR loan on a single family long term rental I own in Arizona. The property cash flows well and has enough equity.

There are more than 1 lender who can do 2nd liens compare quotes. Happy to help!

Quote from @Dilcia Morales:

Hello Fellow Investors,

I am excited to be under contract for my first STR property, but I am getting nervous about the many things I'm already discovering. I am surprised that my lender is asking me to access Social Security Records and a tax transcript. Since this is a DSCR loan and I already provided account statements with proof of funds and my mortgage statement for the principal residence, I didn't expect much more would be required. I have no issues, but I didn't need to provide so much information, even for a conventional loan. I appreciate any feedback. Thank you.

If you are using a purely investment driven DSCR product you shouldnt need transcripts at all, ever. Social security number, and card makes sense. Advise you find another lender who has less paperwork.

Quote from @Davian M.:

Greetings, 

I’m reaching out to the community to find investor-friendly lenders for a cash-out refi on two properties. Your assistance is greatly appreciated. Thank you in advance!

Hi Davian,

There are lots of reliable brokers and lenders that can help you with your scenario. I would connect with a broker who can help you compare terms across a wide variety of lenders and explain the differences in underwriting, rates, fees, etc. Best of luck!

Quote from @Jared Fisher:

What is the process like for refinancing a hard money loan into a conventional loan? Is it easy to accomplish within a short period of time like within a couple months? 

 It should be very straightforward if you have the proper guidance from a broker or lender. Generally, a simple refinance transaction should take no longer than 30 days or so assuming all parties operate smoothly together.

Quote from @Kent Kettell:

Looking for a lender who offers interest rates of 12% or below.

 Are you seeking a bridge loan? What is the scope of your scenario?

Quote from @James S.:

What is the best company or companies for DSCR loans?

 Depends what youre seeking and the scenario. Lots of good options to choose from. Youll find out through time, trial and error that almost every lender can offer the same terms the one that will stand out is usually the one that is most responsive and transparent with their process.