All Forum Posts by: Grace Santos
Grace Santos has started 2 posts and replied 7 times.
Post: Anyone ever appeal an appraisal report for the projected STR rental data?
- Posts 7
- Votes 4
I have a short term rental in McKenzie Bridge, OR that I'm doing a cash out refinance right now and just got the appraisal report back. The ARV came back reasonable, but on the report, the appraiser only used Vrbo data and no Airbnb data, which many of my neighbors use both platforms. They also put that we have been marketing the property for 3 months, which we just listed it 2 weeks ago so that makes no sense why he would say that or where got that. Our rental is new so he's using projected, but has anyone who has had any new listings challenged the rental data on the appraisal report and been successful and how did you go about it?
Also just to add, we did provide an entire packet for the appraiser of the updates, added value, AirDna data with occupancy rates and market data of neighboring comps. The appraiser also called me to ask these things. Any guidance is appreciated.
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
@Jared Rine Appreciate the insight! Also good to know you have used them before. I had a hard time finding lenders for my specific situation and they were one of two that could do what I was looking for. My STR's have only been up for 3 months so although I have owned them just about 6 months now, many lenders wanted to see 12 months of STR income, use market rents to underwrite, could only give 70% cash out, or quoted me really high rates and points.
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
Quote from @Alex Bekeza:
@Grace Santos What company are you using for this? What terms are you seeing on these initial disclosures?
It's possible that initial disclosures list your name on certain items since you'll be the personal guarantor of the loan EVEN IF the LLC is the borrower because DSCR loans are full recourse.
Alex, it is through Oaktree Funding but the broker is through Greenkey Financial. Yes, this seems to be the case.
Thank you all for the input. I asked them to clarify more on this today and it's due to wanting to see that I am timely on payments for all properties but that it'll be vested in my LLC at closing.
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
Quote from @Timothy Hero:
Ehhh. As a DSCR broker with around 200 closings, none of my lenders ask for personal stuff like primary payment proof. This is common for conventional lenders who offer DSCR/non-qm products, but the true DSCR lenders don't require it.
Timothy, yes they seem to be conventional lenders that offer DSCR/non-qm rather than a true DSCR lender. I'm starting to notice that difference. Thank you for the insight on this!
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
Quote from @Stephanie P.:
Quote from @Grace Santos:
Hello, I'm doing my first DSCR cash out refinance on my short term rental in Indiana. It's currently owned under an LLC. I'm working with a broker right now and just received the initial disclosures. This is where I'm not sure if this is normal. On the initial disclosures it has only my personal name on as the borrower as well as my personal debt listed. They also asked for my personal home mortgage statement. Nowhere on it does it list my LLC as the borrower. It only has my name. I asked the broker about this and he said this is normal and they'll fix it at closing but I didn't feel comfortable signing the disclosures yet unless I knew we were closing in the LLC. I've only used hard money so far with my LLC's and they've never asked for my personal stuff other than to run my credit so I'm just unsure if this is normal or not. Any guidance is much appreciated!
-Grace
Lots of different lenders have different ways to do things, whether you're dealing with conventional lenders or DSCR lenders or some that do both. With DSCR, you're almost always going to be a personal guarantor. As a personal guarantor, they will access your personal credit. Some lenders ask for mortgage statements on all loans that show up on your credit report to check they are reporting correctly. This is not bad or a scam, it's just how they do things. As you go through the process, they will send you new disclosures that mention the LLC, but to get it going, this isn't anything to cause alarm.
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
I see. So it sounds like this is probably happening due to them not doing DSCR mostly. I do like the terms but formatting on the disclosures wasn't what I expected. I'm also remembering now under where it says type of mortgage they had it marked "conventional". I didn't see DSCR written anywhere.
Post: Advice on DSCR loan for cash out refinance
- Posts 7
- Votes 4
Hello, I'm doing my first DSCR cash out refinance on my short term rental in Indiana. It's currently owned under an LLC. I'm working with a broker right now and just received the initial disclosures. This is where I'm not sure if this is normal. On the initial disclosures it has only my personal name on as the borrower as well as my personal debt listed. They also asked for my personal home mortgage statement. Nowhere on it does it list my LLC as the borrower. It only has my name. I asked the broker about this and he said this is normal and they'll fix it at closing but I didn't feel comfortable signing the disclosures yet unless I knew we were closing in the LLC. I've only used hard money so far with my LLC's and they've never asked for my personal stuff other than to run my credit so I'm just unsure if this is normal or not. Any guidance is much appreciated!
-Grace