All Forum Posts by: Dylan M. Davis

You'll need private money to come in and take 1st position, you said you used cash to purchase the deal. Did you finance or are you all in on the property? If you closed less than 60 days ago there's a "delayed purchase" option you could explore in which financing is sought after the cash purchase of the property, you can pull your equity out and have a rehab hold back issued to complete the work and refinance after 6 months into perm financing 30 yr fixed. 

Time to start thinking private money in my opinion. If your goal is to grow, conventional is going to take too long and you need more skin in the game to exit and cash-out effectively. 

Best to have your own cash and do a "delayed purchase" on the property as long as you know a lender that will take it. 

3 above prime to be expected around 10.25% w/ experience 

Hey there, most lenders are only offering competitive DSCR products for 1-4 unit properties. 5+ is difficult nowadays. You acquire a property and fix it up, at 6 months you refinance with a lender that can do it at 75% LTV cash-out or you can do a rate/term at any time leased/unleased.

Bridge financing for 1-30 units would be the best bet. Need an asset-based approach that will just look at the property and qualify based on its financials. No income check. Probably looking at 20-25% down + closing costs. 

Hey there, a cash-out refi would be a good option. Rates and leverage here can very based on DSCR. Look for a 65-75% LTV Cash-out refinance qualified without looking at income. Closing with private money will be quicker and easier for you

Hey there, originator advice: Some lenders don't look at your tax returns, aren't worried about your DTI (debt-to-income). They qualify on property income. If there were renovations done a new appraisal is ordered at 6 months of seasoning with executed leases - 75% LTV cash-out refi into perm financing (30 yr DSCR). If you use a bridge loan (20% down) to acquire the property those are typically 12 month terms with extensions possible w/ no prepay or early exit fees (hint - refi when work is complete, tenants in place). Interest-only payments (P*r/12). Loans are qualified on liquidity, experience, credit and property profitability/rent yields. Considering your exit is to hold the property, for 1-4 units the DSCR program is still a good option because a lender will not issue debt on a property that has a DSCR <1.0 , however floor rates are at about >7.5% right now...

We want the property to be in an LLC this makes the process smoother. Business purpose loans are less impactful on credit. I would suggest refinancing with an asset based lender if this is going to be a strategy you intend to expand on. Rates right now are only a little higher and the process is much easier than with a local credit union.

I would say the BRRR method is the best to begin growing a portfolio. This is buying a property distressed with a short term 12 month IO loan - renovating (value-add) - and then cash-out refinancing at 6 months. If you do your calculations correctly and appraisals at the new value come back as they should you would be able to pull the equity you have in the deal out as well as the difference between mortgage-owed and the current value. Giving you proceeds to move on and do more properties. This can be a slow going process to start but once you have a good portfolio of properties the equity will be there to scale... doing low down payments and variable rate mortgages etc. is risky and doesn't leave enough skin in the game to do much with.