All Forum Posts by: Devin Peterson

Quote from @James McGovern:

Looking for a loan and am curious if all lenders have resorted to creating a laundry list of fees. Some of what I am seeing are:

- Legal Fees

- Underwriting Fees

- Corelogix and other data fees

What's next - Fees for if you are an American living in America? First Born Fees, The Fee Fee, etc.

All of the fees are increasing the amount of money a flipper has to bring to the closing table and aren't helpful.

James,

Fees are accurately disclosed up front by the lender or broker you are working with. There’a something you have to understand that @Erik Estrada made great point on. There’s on cost involved with underwriting a loan. Legal, underwriting, servicing, credit reports, etc. Where you can SAVE money - is by teaming up with one broker or lender and establish a mutually beneficial partnership of return business and maybe earn your self a return client discount. Volume consistency matters. That should make sense, yes?

Quote from @James McGovern:

Approached multiple real estate agents in my market with the attempt of understanding pocket deals and to make offers on distressed on-market properties they have listed on the MLS. I have received nothing but responses from Doofuses. Why is that?

Especially in CT - I need to introduce you to Andrzej. Wicked talented off market deal finding skills.

Quote from @Michael Furey:

I bought a house to flip and just listed it to sell. I’ve researched the rental market here and it’s pretty good. I’m now contemplating just keeping it and renting it. Only problem is, I’d like to get as much of my money out of it as possible. Are there any options for this where I can get 100% (or even close to it) in a refinance?  Anything creative?

Hi Michael, if your strategy shifts and you plan to hold - the best option for you is a DSCR cash out refinance. Most lenders will offer up to 75% of the new ARV. There are also some odd ball programs out there that will allow you to do a 2nd DSCR HELOAN to get some remaining equity but the property must still debt service 1:1. Happy to connect and chat more about your scenario. Good luck!

Quote from @Ryan Lee:

Hi,

I'm thinking of doing Investment Property conventional Refi.

I had my current loan for about a month, and previous loan for about 2 months. I did refi on these.

Is the requirement now to hold the current loan for 12 months(or time since buying property?) to do the cash out refi, for conventional loans like Fannie?

Also, we can take out up to 75% of equity? So, if we have 50% equity, we can take out 25%?

Hi Ryan,

Depending on which lender you speak to and what program guidelines they have - you may or may not see a seasoning requirement. Lenders who have no seasoning requirement generally are higher ticket. If you wait at least 90 says from the purchase date - the options tend to open up for better rates and lower cost. Happy to connect and chat more. Good luck!

Quote from @Jaren Licalzi:

Quote from @Devin Peterson:

Is it the one that looks like a spacecraft from Star Wars?

 Haha You will have to show me which one youre referring to now.

 Can't see it from the back - but the front is facing the beach - looks so futuristic 

Is it the one that looks like a spacecraft from Star Wars?

Quote from @Elda Asheley:

Hi. I’m looking for advice, this will be my first flip and I am trying to secure a lender. Should I go local? Or are there any known Lenders out there that will work with newbies?

 Hi Elda!

Great to hear you are ready to get your hands dirty in the world of real estate investing! There are a ton of qualified lenders and brokers who can accommodate first-timers. Might I recommend looking at the find a lender tab at the top of the page. Cross-referencing multiple lenders is a good way to learn. 

If this is your first flip you can usually expect 15-20% LTC depending on sales price, reno budget and ARV. The final terms will be heavily dependent on total cost basis and profit in the deal. You may also be limited to the "level / heavy duty" type of reno construction. Usually, adding to the existing square footprint and blasting walls isn't something lenders particularly fancy with first-timers, unless you're in the car with an experienced partner.

I'm happy to connect and help you answer all the hardball questions. I have been doing this for a while!

All the best!

Quote from @Andrew Strong:

Hello! I’m looking for an investor friendly realtor that I can team up with in the Tampa Florida area, pinellas county . I am a fix n flipper , have over 1 year experience and have flipped 5 properties this year. If you think we can make a good team please reach out! 

Hey Andrew! Hope all is well. I have just the person. Feel free to reach out. My cell is below!

Hi Kearsten!

So exciting to hear you are ready to begin your journey! Best things to do when getting started is building your team. Insurance agents, title or attorney reps, lender, and general contractor and property manager! Be sure to talk with a few different folks to get an idea of what fits! Happy to connect and discuss the endless options and creative financing available for investment loans. Good luck!

Quote from @Austin Bouchard:

Who has the best rates on DSCR Purchase or rate and term refi (without charging crazy origination - preferably 2 points or less)? Will be above a 1.2 DSCR and LTV will be between 50 and 60% on a good B class rental. Any input is appreciated.

I’m going to recommend looking into the find  a lender tab. I’m also going to make a blanket statement for every lender and investor out there who isn’t quite understanding of the lenders and work they do. A successful tip from billionaire business moguls and likes of Alex Hormozi. Don’t be so quick to search for CHEAPEST cost. 1. You request cheap, you get cheap service. 2. There is a good reason a reputable lender will and rightfully has the ability to charge 2-2.50% 3. Don’t undermine the work and battles lenders have fight on behalf of their clients to make you (all investors) look good. I’ve seen folks inquire a lot about “cost” be exorbitant but it’s not for the world to set the payroll of the persons assistance they are requesting of.

On another note, with that good of an LTV and DSCR - if credit is in good shape you should be in the low 7’s todays market. Good luck!