All Forum Posts by: Rob Beeman

@Sneh Lathiya Message me if you have an interest in being a referral partner for us, a direct lender to real estate investors.

You receive your fee (points) at the closing of the loans.

@Christian Hollinger We are capped at 75%LTV on cash out refis.

80% rate & term refi on SFR's (but not 2-4 units).

@Matthew Lucherini Understand why the HELOC is appealing. However, if that doesn't pan out - keep me in mind as we have a cash out 30 year rental loan product with the loan supplied to the LLC (stays off credit). If the property(s) is currently in your name it can be transferred to the LLC at the loan closing. There is NO CAP on the number of loans you can have in this way. The lease income is the income source (no tax returns, bank statements), not your personal income. Message me if you have q's.

@Jeremy Sullivan Can't say that I am familiar with them, however I am very familiar with fix n flip loans as I used them for many years and now supply them. Happy to help with any questions that you have about the loan type.  Also, I think I recently posted a blog here on BP about "Understanding Rehab Loans".

@Sina Bigdeli  Try Civic Financial Services. They are based on the West Coast and have a rental loan for 1-4 unit properties.

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@Eileen L. You can use the services of a commercial style lender that will loan to your LLC (one that you have or will create) even if the properties are residential style properties. The fact that the loan is to an entity (LLC) and not a person (consumer) makes it a commercial style loan. These lenders offer a loan tape product of 2+ properties within the tape. This is sometimes used when a single property within the tape might not qualify for financing (value, lease income vs expenses, etc.), however when that [property is mixed in with others within the tape, the average value, income, etc. makes sense.

The downside to a loan tape of 2+ properties: If you choose to sell or payoff one of the properties within the tape, the lender might require what is referred to as a "turbo paydown". They might require a 20% additional payoff for the turbo paydown.  The purpose of this is so that the "quality properties as collateral within the tape aren't sold off/paid off, leaving the less attractive properties as the remaining collateral. Lenders are always thinking about the downside.

Personally, I would do them as separate transactions, even though it might be a few dollars more for double fees, as I like flexibility and feel that some of that is lost with a loan tape.

@Matt Sora  Matt - on short-term loans interest only might make sense as the funds are not used for a long period of time, and the loan is paid off in a lump some on the exit (either via refi or property sell).

On long-term loans, interest only typically is used when there is a debt service coverage ratio (DSCR) issue and it is needed to qualify for the loan OR if the borrower is trying to gain a little more cash flow. Typically the interest only is limited to a period of time and then converts to a principal & interest loan at some point.

@Matt Sora  Sometimes it is best to mix it up - use both resources. Match the project up with the money source. Each offer pros, and each have cons as well, but for me, I migrated away from banks mostly because I didn't like being restricted and when the market turned the wrong way, they forgot who I was (they loved me when the market was strong and ignored me when the market got soft).

Got to love technology! To think of all of those grungy, smelly vacant properties that I walked through over the years and all of the headaches of dealing with contractors that try your patience during rehabs can now be avoided in the form of flipping called "Micro Flipping". Not sure what it is, or if you should consider it? Hopefully this post allows me to drop this link that explains it: https://www.quickenloans.com/l...

There seems to always be the next best way to make money in real estate!