All Forum Posts by: Daniel Molina

@Eric Crump You may want to invest in getting a CMA or even some form of valuation (BPO) to help determine the value. There are tons of variables that are going to adjust the purchase price including how saturated the market is with REO/foreclosures.

@David Ordonez There are specialized lenders out there which can help some OO purchases that are like a SIVA loan. These do tend to be pricier and seem like a 3/1 ARM.

Most HML/private lenders will not fund for anything that is owner occupied. Happy to ask around my network for you.

It would not make it more challenging if you go through a private lender/HML. Typically they are more concerned with the asset and your experience.

@Judson Thornton Tucker JR Each lender is going to have their own requirements. Some may not pull credit at all but limit leverage; some are credit conscious - better credit better rate; and others will 100% require credit and hard pull each time. With that said, there is not a clear answer regarding how it effects your credit with each refinance. 

I would recommend trying to find a lender who is willing to partner with you so they can get comfortable with soft-pulls as long as your payment history has been consistent. I would also recommend working with an investor friendly private lender since those loans would be 'business purpose' and can be issued to an LLC therefore not reflected on you personal credit/debt. This is a huge value add if your long term strategy for debt is a conventional lender.

@Shane Smith It is not always a requirement to have an LLC but it does tend to lend to a smoother options as it can allow lenders to offer a non-recourse option or better pricing. I know of a few lenders who will allow you to fund in your personal name; however, you will have to sign additional documentation that state you do not intended to live in the asset.

Regarding next steps after winning a bid, it sounds like you need a lender who is willing to fund day of. NC is a tricky state since it is semi-judicial. Technically, after winning the bid there can be a upset assuming the next investor is willing to pay at least 5% higher than your winning offer. This upset period is active for 10 days. In additional, these foreclosure auctions require that you pay in full with cash or cert. funds once your bid wins; meaning you will have to find a lender willing to leverage the asset without getting a valuation and will to pay the trustee in cash. 

If you are winning the bid on websites like XOME/Hubzu they will let you know if financing is an option where you can follow a much more traditional process of partnering with a lender, getting valuation and closing within the agreed upon time frame. 

Sorry for the lengthy post just plenty of different scenarios to run through. Happy to speak with more detail if you want to reach out, pm me. 

@Chris Marten Echoing what others have told you...If you are not living in it getting a hard money or private money loan will be easy. 

I personally would pay the 12-14% someone mentioned above; however, they may not have access to the same capital partners. Either way, I'd recommend you take out a 50LTV loan as a refi complete the construction and stick to your exit. 

If you can find a HML that will work with you even better, you could pay higher rate to buy down origination saving you upfront costs - pending timeline.

This is something I can finance if you have a buyer who is short on funds. Feel free to reach out. 

@Patrick Geers I would suggest finding a private lender who can fund the flip then refi out to longer term debt - even a 2 or 4 year note. This will allow you to build rental history and have a rolling average of potential earnings with the short-term rental. 

Once you can show history and create a pro forma using actual data a refi out in a conventional space will be significantly easier. From my experience it also shows you to be slightly more prepared and sophisticated an the 'newbie' even if it is your first deal. 

I also think that in the 2-4 year period GSE financing will  drop in rates again since the yield curve is virtually flat or inverse. Feel free to PM me if you have more details questions and I hope you found my $0.02 valuable. 

Best of luck!

@Al Hinkle I personally will never use aggregate sites or a broker when searching for a lenders unless you either 1. do not have the time to do research yourself or 2. Have an extremely unique deal that most lenders you have spoken with have already turned you down. 

You can find most direct lenders with a simple search in your market or leveraging your network. You'd be surprised how many people have explored options with private, hard money or conventional lenders. 

Happy to share more insight if you wish to connect. 

@Leland James First off, let me start by saying congratulations on making the decision to start investing in real estate. Secondly, the market you are in has a lot of lenders out there. Same making smart loans and others being incredibly aggressive on terms that may entice you but ultimately, is not realistic for a long term partnership as those lenders will peter off over time when the market softens or worse - corrects. 

I think it would be best for you to get an idea of terms you are looking for and then find a lender that can meet those needs rather than lenders trying to 'sell' you on their terms. It is important to try and find a partnership rather than just any lender. This way the lender can grow with you and hopefully advise against a poor deal. 

I am very familiar with the market you are in and the lending space so happy to connect and speak further if you are interested in speaking. 

Best of luck to you!

-Dan