All Forum Posts by: Eric Johnson

You'd need to go conventional for that.

Not any legal action likely. Best to cut ties and move on to a better partner. 

Sure, we can fill out a questionnaire, but it's usually better to set up a phone call and talk about these verbally. 

alternatively, if the lender is prepared they would already have same guideline sheets / term sheets ready to send to any new borrowers. For any prospective clients that email me, the first thing I do is send over my program literature for them to review. This gives them a great birds eye view to see if it the partnership would even be close to a right fit. 

My guideline sheets usually answer 90% of the question (except for process based), but it gives a very good idea if we have a chance at being partners. 

Well, I can definitely assist with this. Let's connect. 

Alexis, this depends on what you are looking for? Are you looking for someone that specializes in working with investors and invests themselves? I'll shoot you a DM.

Most small hard money loans require a guarantor, on bigger commercial and multifamily deals, then sure, non recourse. 

But generally a guarantor is required for these deals. Consider being a passive investor with an active investor in your market if you are hesitant about doing a deal solo. 

Multifamily rates are favorable for the foreseeable future. Cap rates are compressing throughout the country which means as a multifamily operator, you must be weary of your prepayment options as this compression is leading to early exits and adjusted business plans. Consider floating rate multifamily loans with light prepayment penalty, if any at all. 

I'm not sure what you mean by don't want to put down 20%. That's not really your decision to make. Multifamily is at about 70-75% LTV right now. If you want to bring less cash in, then find an equity partner. These small balance deals are tough to finance. The sources of capital and the options of your capital stack are very limited with loan amounts less than $500,000. My suggestion is to bring in a partner and figure and equity structure with them.

GL

It depends on your market. Do all of your comps  have a garage? What are they renting for? What's the market standard HVAC? You should be researching these questions as an investor to determine what you need to do to your project to align it, so that you have product/market fit.

Aviv, your best bet is to go commercial blanket note. That is easier to achieve for an investor scaling their portfolio. 

Depending on the nature of the note, some commercial loans are not reported to the credit agencies. For example, Shoresides rental loans are not reported to the credit agencies, thus giving an advantage for the potential to use conventional loans again. 

Will you still need to disclose your payment on conventional and will it/should it be factored into your DTI, also yes. I imagine if you lie about that on a 1003 application and GSE buys your loan, you're technically committing mortgage fraud.

So, be careful here.