All Forum Posts by: Issac San Miguel

I'm aware of programs out there that can still fund up to 80% of the entire project, including land acquisition for SFR.

Kyle,

That is a very interesting reason to deny someone's loan.

As another said - short term money is the play here.

A bridge lender who can close quickly and then you refinance out of it.

I'd agree with the break even option - keep the cash flow.  Unless there is something significant you can do with the additional $11k.

As Stephanie said, you can achieve 75% with a good DSCR ,however it sounds like the cash flow will be negated that point.

Quote from @Allie Foland:

My husband and I both have full time jobs and have been talking for years about flipping homes. We flipped our first home and planned to continue but had our first son so we no longer wanted to live in a construction zone.

We are looking to begin to go for it on the side in hopes of eventually leaving our jobs once we get in the swing of things.

How do you all go about finding a lender? I have been actively checking a local auction website and plan to rehab one of those for our first deal.

 Your inbox is about to be flooded. 

do not pay upfront commitment fees, application fees, escrow fees, or anything else *before* the loan closes 

the only cost incurred should be for an appraisal. 

some lenders will charge you for your credit report as well but I find that tacky. 

underwrite your deal and make sure you include contingency costs. 

be leery of sub 10 rates and ask if they use rehab funds to fund other loans or will they be escrowed for your deal?

There is a lot of volatility in capital markets right now, so if it sounds too good to be true, it probably is. 

Quote from @Michael Mackney:

@Issac San Miguel Thanks for the reply, who would I get that fix and flip bridge loan from?

Depending on the property either fannie or freddie’s rehab program, a non qm, or hard money lender. They all have different programs. 

Can they produce notes they have closed?

How long does it take to get a draw?

Do you keep my draw money allocated for only my project?

Can I order my own appraisal or do you have to order through an AMC.

How long will it take to close?

Are you a member of the AAPL or NAPL?

Quote from @Nick Shri:

HMLenders like to be in first lien, chances of getting HML for cosmetic lift are slim. Recommend you look at finding alternatives - borrow from relatives, friends or a 0% credit card.

 Agreed, a 0% credit card. If you did not want to go that route you *could* use a fix and flip bridge loan and likely not come out of pocket to close if there is equity in the property. 

At the end of that term, or once the rehab is complete, you then refi it again into a DSCR loan.

Quote from @Robert Sorrels:

Thanks Issac, 

Would this still work if I currently have a mortgage (30% LTV) on the STR?

No this would be a refinance, although I would think if you could find a LOC on BP if you look hard enough.

Quote from @Robert Sorrels:

I would like to pull some equity out of my STR investment property in order to purchase and BRRRR another property. I live in CA. STR is in OR, and the BRRRR property would be in OK...

You can accomplish this using a DSCR loan for STRs. AirDNA can be used in in place of a t12 to provide a monthly market rent. 

Most products I have seen offer a 70-75% ltv. 5/1, 7/1, and fixed 30 are options. 

It would be possible to put it on a bridge loan with a rehab holdback - the equity would determine the out of pocket - of course - that would be a short term loan and come with a *much* higher rate.