All Forum Posts by: Dustin Tucker

Hello BJ, this is something that we could look at funding, The issue you are going to run into if the property is platted as 1 lot, and your Primary Residence being on the property, most of these types of construction loans are on investment loans.  If you haven't started the process, I would look into the replating process to get your property subdivided into 3 or more lots, this way you can create additional equity as well as set yourself up to get the funding you are looking for.

Hello Ethan, I think that you can research on Air BNB and VRBO to see if there any existing STR in your area to begin with. If there is not HOA, the only enforcement would be from a disgruntled neighbor who might end up filing a lawsuit against you over a potential Commercial use.

If you have a county commissioner you could also check with them to see if your STR Rental would be a problem, I would be surprised if the county would do anything to restrict your use.

We lend on Rural STR, up to 70% LTV for DSCR rentals, with no seasoning, we can use AIR DNA for income projections.

Hope this helps.

Hello Stanley, Congratulations on your purchase, will you be selling this property or turning it into a Rental Property.  We finance Short Term Rentals, Mid Term Rentals and Long Term Rentals, for short term rentals we don't require any seasoning, and can use AIR DNA for estimating the Rental income.

Hello Alyssa, Have you looked up your Air DNA rental income, you can project the income pretty easily, I don't know what zip code your property is in, but with Air DNA, for a 3/1 in 78203, you are looking at 51% occupancy, with $37,834 Projected annual revenue at 51% occupancy. I would think that if you have an FHA Loan in place you could easily keep this property and turn it into a STR.

Also, you can have up to 10 FHA loans out at 1x before you have to get into DSCR Loans.

If I were you, I would go purchase the new property, and then wait 60-90 days, and see what type of Refinance I could get on your 1st property.  Also, keep in mind once the rates start falling this fall, in my opinion there is going to be a short lived surge in purchases from pent up demand that people were waiting for.

Hope this helps.

Also, if you are looking to keep more of your RE Commission DM me, I'm a Licensed Broker in Texas as well.

Hello Emily,  Its definitely nerve racking purchasing your 1st property, a couple things to consider.

1. I assume you have looked up your property on Air DNA, this is the best way to determine STR annual income.

2. I also assume that you have an option contract, where you get to do an inspection, and general feasibility.

3. Based on a 2/2 Air DNA projections it looks like the area is getting 55% annual occupancy, with expected rental income around $39,619.

4. If you can tell me the purchase price and down payment, I could figure out your cash on cash return.

5. One additional item to consider is to buy an outdated property, rehab it and refinance it, this way you would have less cash into the deal and higher Cash on Cash Returns.

Hello Jennifer,

For Seller Financing, you would write your offer just like you would with 3rd party financing.

I would think that Florida Real Estate Commission has a Seller Finance Addendum to add to your contract, on the addendum you would fill out the terms you are proposing.  If you are going with a balloon you could do Interest Only instead of a Balloon payment, which would lower your monthly payment. 

Reasons to sell the seller on the Owner financing might be, because you are going to do a substantial rehab to the property, or that the property doesn't have any buyers, and this is a way to sell the property.

Seller Financing works a lot better when there is not a realtor to pay, where a realtor's commission could be 6%, which on a $300,000 Purchase would be $18,000.

An additional option you might consider if you are looking at purchasing this property to do a flip, or fix and rent, is you could propose seeing if the seller would partner with you, and you would secure a Private Loan for 50% of the sales price, plus the rehab, and if there is enough upside equity, you would probably be able to do a cash out refinance and pay off the seller that way. Hope this helps.

@Chris Seveney Yes chris its seems like 3 out of 5 of our current clients are looking for refinance or cash out, definately points to the underlying stress in the market. I think its just going to continue with rates dropping next month. Also, the feds revised -800,000 jobs news doesnt help either.

Builder loan Non Owner Occupied,

4 Draws.

I am a lender and Broker at CTF Funding,

I'm looking for a lender that will do a partially complete new constuction in San Antonio, TX.

Lot Price: $197,000

Construction Costs: $1,250,000

ARV: $1,800,000

(Appraisal Came Back at $1.3)

4800 Sq.ft. New Construction

Borrower paid Cash for the lot and $600,000, of the construction

House is currently at Sheetrock stage inside, with roof completed and windows installed.

Looking for $700,000 to complete the house.

DM me for more details.

Hello Stephanie,

I would need a little more information to give you a better scenario, such as the location in proximity to a city, is there any potential for rental.

I can tell you as someone who owns cattle.  Ag Land leasing is only worth $10-50/acre per year, so 6 acres would only generate $300 max per year.  

The 2nd part of the question would be what is the family situation how many siblings will inherit the property if the property passes, and keep in mind your husband has his inheritance in that property as well, so you should consider that when negotiating a price.

If you can I would try to build a quadplex on the property, this is going to be the easiest way to generate money, and the most stable route for future income.  To me the quadplex would be dual purpose, while you are not living there it serves as a reliable stream of income, once you move there, you could live in 1 of the units while you build your permanent home, and you could also use it for when your family comes over for large gatherings.

A 2nd option might be to build an RV park, Unless their are zoning restrictions, you should be able to build one fairly inexpensive, with a septic system and either public water or a well, you can keep your costs to a minimum by doing gravel roads, which are easier to remove later if you don't want them. This would depend on the location, I know in Texas the RV parks are generating $300/space/month in income, you are easily seeing 30% ROI for RV parks.