All Forum Posts by: Erik Estrada

 Both are great options, but your experience will depend on the account executive you work with. 

I would recommend going through a broker that does a lot of loan volume instead of going direct. When you go direct, you will likely get a newbie loan officer and it will take gruesome 45 days to close your loan. And good luck getting them on the phone to answer your questions. 

When you work with an experienced broker, it will be a lot smoother process. They generally work with veteran account executives, know the lending guidelines, and will provide usually the same or sometimes better pricing. 

This is not to bash on Retail Account Executives, as if you are a top producing investor with several hundred deals a year, you will likely get A-paper service going direct. But if this is your first rodeo with them, you should lean on a broker to help execute for you. 

Hey James, 

Yes you can roll in the payments on a fix and flip loan, usually at 85 LTC if you have light experience. You cannot live in the property however. 

As a lender, I do like the private lender conferences. Not only to meet potential clients but also to learn about what other lending companies are offering. Sure there are some companies that virtually offer the same product and are rebranded, however there are the small few that can really get down to some niche loan products. If you are the only guy offering the product and marketing it better than the main source, your phone will not stop ringing. 

But I only do this once a year. Most of the time I am marketing myself online and building my reputation. 

Hey Havan, 

Happy to connect 

 Hey Mark, 

A 12 Unit DSCR loan will typically require at least 12 months to Cash Out Refinance on the new appraised value. You may want to try a local credit union or bank to see if they can do a 6 months seasoning minimum.

Additionally are all the units occupied? Most lenders are going to want to see full-occupancy (handful will do 75% occupancy) On a 12 unit MFH. 

Lastly, what part of Ohio is this located in? If it is in a Rural Area, it may reduce your LTV. I am seeing this at 65-70 LTV for the time being.

Quote from @Linda Weygant:

Quote from @Chris Seveney:

Quote from @Linda Weygant:

I'm a CPA, serving real estate investors.

This time of year, clients who are on extension will request proof that they are on extension for their mortgage broker.  Because I live in the 21st century, I EFile the extension for my clients and my software receives a confirmation back from the IRS and/or state that there is now a valid extension on file.  The proof exists in bits and bytes in my software, but my software can generate a letter that looks like this:

All of the smart people I know would look at that and say "Yep, that's proof of an extension being filed all right.  Even gives me the confirmation number.  Cool!"  HOWEVER, the bright folks in the lending industry say "No - I want the form!".  I do get it.  Back in the dawn of time, about 15 years ago before EFiling was so prevalent, it used to be that you'd print out a form 4868 and mail it to the IRS to request your extension.  The IRS would stamp it as "approved" and mail it back to you and that was your proof that you had a valid extension.

Somehow... SOMEHOW... in this day and age, this is what you guys still want???  Why??  I mean, my software can still generate that form and print it out.  But if I do so, it doesn't mean that it was sent to the IRS and it certainly doesn't mean that it was accepted/acknowledged.  The IRS no longer stamps the paper copy and sends it back.

In fact, the client could just go online and complete the form using Adobe and give it to you and it would be proof of exactly nothing.

So tell me..  Please, because I'm dying to know.  Why are you like this?

 Which lenders specifically are you referring too (name names)? We are a correspondent with over five lenders and not one has ever asked for this? 

Unfortunately, I don't know the companies or I definitely would be naming and shaming.  All communication uses the client as the middle man as the ethics of the profession prevent me from even acknowledging somebody is a client without a form on file.  But my clients are nationwide (I'm a virtual firm) and this comes from clients across the country.  Current one that chapped my hide is in KS, but I've had it from CO, CA, AL, GA, NJ, IL and WI in the last year.

 Bingo! 

The real issue is the lender hiding behind the screen and not having any open communication with you. A lot of the issues stem from miscommunication from Third Party, to Borrower, to Loan Officer, to Underwriter. 

I know some of the forms required can be gruesome and annoying, but like many fellow colleagues have stated, it really just depends on any overlays the lending entity has. The more conservative they are, the more they will ask for. 

Have you considered just getting a JV Partner?

 Hey Xiang, 

Happy to connect 

I agree with the above. 

Unfortunately there are a lot of Brokers that will jerk you around because they can't give you the terms they initially promised. Classic sales tactic. 

If this is a TRID/Consumer Purpose Loan, I would suggest filing a complaint with the NMLS. He will likely get a strong warning or a temporary suspension because of his unethical conduct. 

If this is a Business Purpose Loan, there is pretty much nothing you can do other than leave a bad company review. Unfortunately these con men, like to create new companies all the time, and continue the bad practice. 

I would suggest next time to research the company. Look for reviews, licensing, and social media presence.

Have you looked into a DSCR loan?