All Forum Posts by: Erik Estrada
Erik Estrada has started 184 posts and replied 4627 times.
Post: Any other Brokers facing difficulty getting signed up on BPs Featured Lender System?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
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I have tried for months to try to get signed up for BP's Featured Lender System and it seems like each time I try to get a hold of someone at BP, I get ghosted with no explanation...
I have been pretty active on these forums, have helped several investors secure financing and have built my reputation from the bottom. I wonder if anyone else is facing difficulties?
Post: DSCR Loans for Manufactured Homes (RURAL OKAY)
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
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Post: 100% Financing available
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
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Quote from @Adrian Turner:
Hello, new real estate investor here. And by new I mean I haven’t done my first deal yet. @Erik Estrada the thing that has always puzzled me is if you’re covering 100% of the financing and even willing to roll the fees into the financing, why does a person’s credit score/rating matter? Isn’t the Fix & Flip property the thing that is going to satisfy the loan once it’s resold? I’m asking to understand how the mechanics of this type of lending works.
Hey Adrian,
That is a great question. The reason why a person's credit score and experience matters, is to mitigate risk.
If I loan you 100% of your project and you have no experience and have very little to no credit history, what would guarantee the loan being repaid in full?
Credit and experience are still at play especially on a request like this. It is very easy for a new investor to get over leveraged and have absolutely no exit strategy. This kind of financing is reserved for the cookie cutter deals and experienced clients.
Post: 100% Financing available
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Posts 4,805
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Quote from @Reginald Truss:
“Thanks Erik — appreciate the clarification. I think where some investors get tripped up is how ‘100% financing’ is interpreted.
Covering purchase, rehab, and even part of the down payment is possible, but it’s almost always done through structured setups like:
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Cross-collateralizing other assets,
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JV/partner equity, or
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Secondary funding stacked with a primary loan.
That’s different from a single lender offering ‘zero-out-of-pocket’ across the board. For folks reading this thread, the takeaway is: always ask how the 100% is structured and what requirements or costs are attached.
I’ve helped clients get close to no-money-down through creative funding stacks, but never from one lender alone. Transparency on the mechanics is what keeps investors from being misled.”
We have a lender that can finance the purchase, rehab and down payment. They are 1st and 2nd position loans by the same lender. The fees can also be financed into the loan.
Post: 100% Financing available
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Posts 4,805
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Quote from @Reginald Truss:
“Just to clear up some confusion I see often — there really isn’t such a thing as true ‘100% financing’ from one lender. Lenders almost always require some skin in the game. What does happen is:
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Cross-collateral (using equity in another property)
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Partner or JV equity covering your down payment
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Certain structured programs that roll in rehab or gap funding
So yes, deals can get very close to no-money-out-of-pocket, but it’s never as simple as the ads make it sound.
I help investors structure those kinds of financing stacks every day, so if anyone wants clarity on what’s real vs. marketing, feel free to DM me.”
We have more than 57 reviews and counting.. There is no misinformation here sir.
We held investors finance the purchase, rehab, and downpayment
Post: Help! Buying Non-Warrantable Condo
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
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Did you end up closing on this?
Post: 100% Financing available
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Posts 4,805
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PM for a quote!
Post: Seeking Hard Money / Private Money Lender
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Posts 4,805
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Quote from @Joshua Hunt:
Property: Fully rehabbed, move-in ready
Location: Chicago
Status: Already on the market for sale
Ownership: Free & clear (no mortgage)
Need: Short-term loan to float until sale closesI’m looking for a hard money or private money lender who can move quickly and help bridge me through the sale of this property.
Flexible, short-term loan structure preferred. If you or someone you know can provide lending in the Chicago area, let’s connect!
Did you find an option?
Post: Brokers, be careful with Kiavi. They will contact your borrowers.
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Posts 4,805
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Quote from @Devin Peterson:
Quote from @Erik Estrada:
I normally don't like to call out lenders, but this one was insane and I hope it does not happen to any other brokers out there.
I submitted a loan to Kiavi a few months ago and it did not work out since the property did not appraise and the appraiser did not consider any revision request. I spent a lot of time structuring this deal, getting revision requests, and it was pretty much close to loan docs. The borrower didn't move forward because the rate increased due to the lower DSCR, and the borrower was receiving less cash out.This property was part of a larger portfolio that my client was considering refinancing, but wanted to test the waters with 1 property first. Through my diligent follow-ups the my client came back around and wanted to start the process again on the entire portfolio since we have gotten quite a few rate drops. This time around I did not take it to Kiavi since I did not like how they handled the revisions and did not want to provide any exceptions on pricing. So, I quoted my client with a different lender. Albeit the rate was a bit higher since the client's DSCR was very tight on a portfolio to begin with. I sent over the terms to my client and he said he would get back to me.
I gave it a few days as my client said he was busy traveling and was examining another quote from a different lender. Naturally I didn't think anything of it since it is the nature of the business. He goes silent until I followed-up and he said he got a quote from Kiavi at a much lower rate and lower fee.
I contacted Kiavi about it, since I never gave the client their contact and consent to contact my clients directly, and the account executive said, that since the borrower did not close with Kiavi on the previous loan I submitted to them, they basically have all rights to solicit your borrower's directly, and not pay you any referral fee or nor give you any heads up.
Imagine spending several hours, structuring a loan for your client that makes sense, all for the lender to go around you, use the information you gave them, and not give you any credit or even touch-base with you and say "hey by the way, your client contacted us directly".
I sent Kiavi several loans over these last few years, and I can't believe they will do something so dishonest to their broker partners. Be very careful sending anything to Kiavi.
So sad - Kiavi is a premier lender for brokers their system is amongst the best but this is a massive red flag and a terrible way to destroy strong broker relationships. Did your AE attempt to even have your back? Or were they more or less saying sucks for you sorry not sorry ?
Yea their system is solid! Nope he did not care one bit and I have sent him at least 20 loans this year easily and have referred other broker partner to him. Seems like once you send them a client, get all their info and even start the process with them, they will poach your clients with emails and marketing calls.
Post: second loan extension and I might not finish- what would be my options?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
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Quote from @Carlos Pelegrina:
Quote from @Erik Estrada:
Quote from @Carlos Pelegrina:
Calling for a friend:
I’m in the process of converting an old house in Delaware County, NY, into three apartments and a small commercial space. It took me a while to find the right team, which delayed the project.
I requested a 3-month loan extension, and now I’m asking for a second one. However, I’m concerned I won’t be able to complete the project within this second extension, and I’m not sure if another extension will be possible.
Is anyone familiar with refinancing options in this type of situation? I don’t think a traditional bank will take it on, so I may need a hard money lender or private lender. It’s not a huge loan, but I don’t want to risk losing the property over just a couple of extra months.
Any advice, contacts, or guidance would be greatly appreciated.
Hey Carlos,
Did you finish the rehab yet?
Hi Erik.
I have not.
I have still 4 to 5 month to go and I am figuring out options for when the loan matures.
This one is going to be very tough to refinance if you are not finished with the work yet. Are there any other properties your friend can pull from to cover the cost to finish?