All Forum Posts by: Erik Estrada

This is possible on a DSCR loan with no LTV hits. Happy to connect

Do you have the assets and reserves? What if the property does not appraise and cannot cash him out? 

 There are several on here! Happy to connect 

 Biggest Hurdles in the Broker Side: 

1. Too many lenders hiring bad reps. (Never answer calls, no experience, no support) 

2. Clients withholding information and trying to do a "fast one" 

3. Credit Reports are getting very expensive 

4. Bad appraisers 

5. Slow title/insurance reps (usually from the borrower's choice) 

Hey Rafael, 

I am having trouble understanding your post. What exactly does the condo need to be up to date in regards, to? 

If it is considered a non-warrantable condo, you can still obtain financing through a DSCR loan. However the lender will want to see why it is considered non-warrantable.

My biggest concern with a lot of properties in Florida is the insurance coverage. Does the condo have an HOA? Is the property in a flood/wind zone?

 Hi Chaim, 

Is this an investment property? If it is there are several lenders that can do a cash out refi on the new appraised value with no seasoning requirements. 

A good place to start is to find comps yourself that are within a mile radius, and are similar in sqft, and rehab. The appraiser is going to use MLS data and use their best judgement. There is not a real way to predict the appraised value other than doing the homework yourself and perhaps using house canary/zestimate to get an idea.

I would advise to always be on the conservative side

Might want to try a commercial bank. 

There are DSCR based fixed 2nd Mortgages available, but have yet to see a HELOC available

Have you considered getting a JV partner instead? You will be able to secure favorable terms finding a partner or saving up for the extra 5%.

 It is possible but the rate will be very high. expect 11-12.5% on a 30 year fixed mortgage. 

I also agree that you should try a local bank. If they can't do it, then I am happy to connect. 

Yes borrowing with no reserves, skin in the game, and no stable source of income is very risky. 

Have you planned for the risks? What if your homes don't appraise? What if you cannot payoff the HELOC? What if you cannot secure a tenant on time?

I don't want to be the negative Nancy, but you should consider multiple exit strategies before taking on huge debt and potentially ruining your credit.