All Forum Posts by: Devin Peterson

I have a question

I have property I just acquired and renovated with a Fannie Mae loan. I’m looking to cash out refi, but I have to wait 12 months of seasoning before I can do that.

Does that seasoning period apply if I cash out refi into a DSCR loan?

I can see a scenario where I take on the risk of a high interest rate and less flexible terms for 5 years, so I can access my cash sooner if that option is there.

I have made a list of many lenders. On paper, they are essentially the same with some minor differences in offerings. 

The question being: How do you decide which lender to use?

Side question: How can you help ensure a good, timely, mistake free lending process? 

Hey investors, when you're looking for rental financing, what do you usually focus on? I'd love to know what matters most to you when picking a financing option for your rentals.

 Jesson, I reccommend maybe not going with a higher preapy of 5.4..3... - Rates are bound to take a nice dive before that time and you might be cuffed to the railroad tracks. Definitely get a few other quotes.

I’m purchasing a fully renovated, vacant 3-unit multiplex in Hartford, CT, for $450K. The anticipated rent per unit is $1,700-$1,900, annual rent 68,400

I’ve been quoted a 7.125% rate on a 30-year fixed mortgage from a direct lender with no points w/ 5,4,3 prepayment. My goal is to leverage 85%, and with an 800 credit score, I'm in a good position. I'm considering a full-doc loan if it leads to better terms.

 Exploring different loan programs and possibly adjusting the down payment to improve terms. The focus is on maximizing cash flow and securing a solid return on this investment.

Loan Commitment states:

 "There is a prepayment penalty of 1% on the loan for any partial or full principal reduction payments made before the end of the fifth year. After the fifth year the loan can be paid off with no prepayment penalty."

So, would the PPP trigger for simply paying a little extra on monthly payments?  I need to confirm with the lender but assume any such "partial" payments would have to be substantial and equal to at least 10-20% or more of the total loan?

Hey all!  I am interested in potentially bidding on a property going up for auction in Lititz, PA, and I’m looking for a lender.  It is a 2-unit property with starting bids at $250K.    

ARV is $500-$600K.

Monthly income:  $3500

Assuming we acquire at $300K and put $30K into renovations (I'm a contractor):

NOI $27,372

CoC ROI is 20.12%.

Pro Forma Cap 5.47%

Purchase Cap 9.12%