All Forum Posts by: Eugene Neal

Good Morning. I have a client that is looking for a commercial lender for a $400,000 apartment building (6 unit). We are looking at options for them for financing. It appears most of the traditional local banks here have $1M minimum requirements for borrowing.

Has anyone used a rockstar lender lately they would like to suggest? Would a DSCR loan here make sense? Borrower has 15-25% down and 800 credit score. Maybe an SBA504 but I don't think they can be used for rental properties?

We as lender prefer DSCR loans because they provide a level of assurance that the property can generate sufficient income to pay the mortgage. This reduces the risk of default and foreclosure for the lender.

However, DSCR loans may have higher interest rates and stricter lending criteria than traditional commercial loans.

Overall, if you're looking to purchase or refinance a commercial property and can show strong cash flow, a DSCR loan may be a good option to consider. Don't hesitate to ask other questions.

0 Votes

Quote from @Justin Pumpr:

Hey all,

I'm looking for some advice on which type of lender to use and then looking for referrals for that type of lender in the Columbus area. Some background:

I own a few properties in Columbus and Dayton, OH (a mix of SFR and small MFRs) all of which are financed using traditional Fannie/Freddie lenders. I'm getting close to my 10 loan limit and would also like to work with someone who is more investor friendly and hopefully is less hassle and still has good rates. I currently have a duplex that I'm BRRR-ing and looking to refi in a couple of months. I also want to buy another 20+ units this year, ideally as one building, but it may be split over a couple depending on the deal. I'm looking to cash-out-refi on these too expecting to only get 70% LTV (although if I could get 75% LTV that'd be great). All my properties are cash flow positive and my FICO fluctuates between the high 700s and low 800s.

I'd like to find a lender who can facilitate all my new properties. So my question is, when considering these types of lenders, Commercial, Portfolio, DSCR, or Private which type of lender would be best suited for scaling my portfolio?

Cheers,
Justin

As us being a direct lender and currently working with many other that are looking to do the same, we wouldn't have an issue with helping you continue your journey. Due to your experience you would only need to place 10% down on properties your are looking to purchase. As far as refi LTV, we may be able to go up to 80% depending upon the situation. Please reach out if ready to discuss the next steps.

Commercial Lenders: Commercial lenders are traditional lenders such as banks and credit unions that offer loans for commercial real estate investments. They typically offer lower interest rates and longer repayment terms than other types of lenders, but they may have stricter lending requirements and longer application processes.
Portfolio Lenders: Portfolio lenders are lenders who keep the loans they make on their own books instead of selling them to investors or secondary markets. This can give them more flexibility when it comes to loan terms and underwriting criteria, which can be beneficial for investors looking to scale their portfolios quickly.
DSCR Lenders: As mentioned earlier, DSCR lenders focus on the cash flow of the property rather than the borrower's creditworthiness. This can be helpful for investors who have strong cash flow from their properties but may not have a strong credit profile.
Private Lenders: Private lenders are individuals or groups who provide financing for real estate investments. They can offer faster funding and more flexible terms than traditional lenders, but they typically charge higher interest rates.

Overall, the best lender for scaling your portfolio will depend on your specific investment goals and financial situation.

2 Votes

Columbus, Ohio

Quote from @Kevin Murphy:

I own a duplex in Portsmouth, VA. Both units are rented. I am open to DSCR, ARM or other terms that keep the APR low (relatively). I have owned it over a year and it's in my LLC. I would like to keep it that way and avoid a ding from a credit pull but I am flexible.

We can fund an approved transaction within 5 to 7 business days. We are a direct lender. Are you looking to also receive cash back or are just looking to receive more permanent financing? Please message me with more information regarding your scenario.

0 Votes

Norfolk, Virginia

Quote from @Eric H.:

@Raymond Hunce What are the credit qualifications for the business line of credit? Do you mind sharing the financier?

Thanks in advance.

Eric H.

We offer credit based upon your business checking account. We look at the deposits for the last 3 months and then lend out usually up to 50% of that average.

0 Votes

Quote from @Alfred Litton:

Hi Folks,

Hope to hear advice on possibly doing a cash out refi on one of our rentals here in Texas. Looking to pull out funds to pay off the last of my daughter's tuition. Anyone have any information on the following?

--Are 75% LTV loans possible right now?

--What sort of reserve requirements are out there?

--Rates and points at the present time?

--How long to close?

If you have any info on what things are looking like out there, especially with these sorts of questions, please let me know. If you're a broker, please DM me.

Alfred

1. Yes, 75% LTV is available possible up to 80% depending upon experience.

2. We may use your cash out proceeds as reserves so no reserves are needed for DSCR loans.

3. Rates and points depend largely on LTV, credit score and whether you're cash flowing.

4. Loans are closing anywhere from 5 to 7 business days depending on the appraisal.

We are a direct lender so if we tell you yes, then it is yes. Please reach out if you are looking to approach the next stage.

0 Votes

Quote from @Samantha Otero:

Looking for highly motivated RE investors to partner with.

I help provide Hard Money loans and business checking account loans within the state of Florida. Please reach out if you need any assistance.

0 Votes

Fort Lauderdale, Florida

Quote from @Jourdan Mercer:

I'm a fairly new investor trying to get into real estate investing. My biggest hurdle has been startup capital.

I live in Hopkinton, Massachusetts. Ideally, I'm looking to invest within an hour or so radius from Hopkinton.

I'm interested in multifamily properties of all sizes as long as the numbers work. I'd like to start small and gradually work my way up.

I'm also looking for waterfront properties that I could turn into airbnb's.

I'm looking to buy and hold. Exit strategy would be to re-finance.

I love the idea of getting Brrrr properties and fixing them up and adding value to them.

I'm also a licensed GC in Mass and have remodeled over 50 homes through the years. I currently work in a custom cabinet shop and want to get into investing full time. I would love to do some of the work myself and anything I'm not comfortable doing or don't have the time for I'll sub out.

I'm looking for someone who would like to join me in my investing adventures that would bring things to the table that I don't bring myself. One of those things is capital. I have some capital, but I'm looking for someone who can cover the down payments. I'm more than happy to discuss what kind of split there would be and the terms and all that.

I'm very easy going and very easy to work with. I'm a perfectionist and I do things right the first time. I'm always trying to educate myself more and learn new ways to do things.

You also maybe able to receive a down payment via a business credit loan. We are able to facilitate both of the processes for certain situations. If interested please reach out at your earliest convenience.

0 Votes

Worcester, Massachusetts

I can gladly you walk you through the process of securing a Hard Money loan. We are a direct lender and can close within 5 business necessary if you have a property currently under contract. Please reach out for assistance.

0 Votes

Orange County, California

We are a direct lender and can gladly review your scenario. There are zero upfront cost and the only potential out of pocket cost is for the appraisal.

0 Votes

Quote from @Andrew Filamor:

Quote from @Mitchell Mims:

Quote from @Hana D.:

Hi guys
I saw you have worked with Zoomeral i am about to work with them too do you have any advice about your experience and do you recommend them ?
thank you !

I contacted you.

Hey @Mitchell Mims, have you received all of your funds? I’m also leaning on the pessimistic side as I do not want to send money when the funding return is not guaranteed. @Hana D. @Caleb Davis

We are a direct lender and can gladly review your current scenario. There are no upfront cost and the only out of pocket expenses are for the appraisal if approved.

0 Votes

All Forum Posts by: Eugene Neal

Eugene Neal has started 13 posts and replied 115 times.

Post: Looking for excellent NY Commercial Property Lender

Post: Commercial, Portfolio, DSCR, or Private Lender

Post: Looking to refi

Post: Business Lines of Credit Fees

Post: Cash out Refin Lenders for Rental in TX

Post: Real Estate Investors (Hollywood FL)

Post: Looking for partners or private investors to build multifamily portfolio

Post: Experienced Investor Seeking Asset-Based Lending & Hard Money Loans for Next Project

Post: Zoomeral Business funding

Post: Zoomeral Business funding