All Forum Posts by: Guifre Mora

@Jill Addison your welcome!

@Kata Walters amazing congratulations

@Chris Mackinlay let me help you with your question on commercial loan terms but I need little more info:

First question how many units in the complex?

Are all 4 buildings in the same APN lot? (could be independent parcels)

Current as is value?

Rehab budget (75K+)

ARV (400K).

How many units are rented?

Actual rent total x mo.? (If 100%)

Market rent value total after rehab x mo.If 100%)

What’s the payoff amount to the lender?

What’s are the current rates and terms?

Are taxes current?

What’s

@Edit B. Yes but if your tenant leaves, you can bump the rent to market. You can evict but you must have a solid case.

@Jill Addison are use a local financial advisor with New York Life he is in San Diego. I just met with him this week he is great send me a PM I’ll be happy to give you his info

@Wilson Lee Having a Mortgage in your credit actually increases your score with time.

@Ted Kawabata the reality is that you could rent the home for $5000. But if you were to sell it, what is the market value? Not the rent size but the market value of the SFR. SFR even if in the commercial space they are not seen as a real commercial income-producing like retail, multi-use or industrial. If your Zoning allows it you might have a chance to turn it into a legal duplex in witch you have a chance of getting a higher value.

@Matthew Lukas you are looking for the wrong lender. There are multiple investor lenders who make you keep your property under a LLC.

Investor long term rental loans are available but the property must have a value of 100k

@Angie Bryant investor long term rental loan.

75-70% LTV stated Income. Loan must close to LLC/Corp...

If property ARV is over 100k or small balance loan if under. DCR at 1.2 for banks or lenders to consider it.

ARV x 75%

Div by gross anual rent should give you 1.2+. This formula should give you the ratios to qualify for such a Loan.

@Alfred Harris @Tyler Gibson This scenario is common but there are specific lenders who are Investor friendly. 2 ways to go about it.

1- Certain lenders will loan to your name and let you vest the title to your LLC, this is a simple process by signing a Vesting Doc either through the loan docs or with Escrow/Title right at closing. (Very Common)

2-Other lenders are Investor focused lenders and their loans are focused on Investor so your loan would be under your LLC.

Its a matter of knowing which lenders has these products. FYI some lenders do not deal with clients directly so a Broker comes in handy.
They can reach 100's of loan products in a few steps, they would be working for you not the lenders' (some at least) interview and create a relationship see if they are a good fit. They can guide you so you won't waste your time and fund your deal quickly.