All Forum Posts by: Dylan M. Davis

Private hard money is a good way to go. Happy to answer questions related to that. I look at 1-30 unit properties all day. Value-add, straight-purchase, refinance. If you have good liquidity and credit then this is a fine option! 

Any reason specifically you need your lender to be local? My group uses the latest tech to close deals for borrowers remotely. We're in NYC. Let me know what you're working on, we're comfortable with Ohio. 

Typically we'd cover 80% of the purchase price and 100% of the rehab budget. Interest-only payments for 12 months. Kiavi is taking a lot longer to fund  these days is what I'm hearing. 

Private money would be a much easier option as long as you don't plan on living in the property. These are business purpose loans in which we lend to an LLC that you control and is less impactful on your credit. The financing you're seeking is a bridge loan where would go in at 65-70% of the ARV issuing a rehab hold back for you to draw down on and complete the project.

The lender would take a first position lien on the property and issue a rehab hold back. Would finance 100% of the rehab costs interest only probably 11%+ Interest right now. Could refi once property is leased.. what kind of questions you have about this? let  me know 

Why don't you consider private money to finance the acquisition/rehab/refinance of these investment properties? Open an LLC, name the members and apply for funding from legit bridge lenders. ( a lot have closed their doors btw). DTI isn't an issue because these are business-purpose loans.

hey there, how do you typically finance your deals? 

I don't recommend to lender shop yourself into a hole. Talk to someone who knows what they're doing  that perhaps is connected to the guys actually writing the check and stick with them. Private lenders give you better rates and leverage the more you bring business. A lot of shops have closed their doors or are not entertaining creative multifamily projects. You should find a lender that's comfortable in 1-30 units. 

STR is really difficult to fund right now. I would read some headlines around the bnb business strategies nowadays and maybe you'll see why getting legit financing for this is so hard to come by. Operating the property with traditional 12 months leases should hold up the financing, if it doesn't, the property doesn't make sense to get into, for you, or the lender...

This would be considered a mixed-use property. The acquisition would probably be funded with a bridge loan at max 75% LTV.. You can do a 2+1 bridge loan (24 months) with 6 month extensions for pts.. Depends on experience and credit. Not many good long-term options on 5+ units right now, especially mixed-use.