All Forum Posts by: Issac San Miguel

@Wesley Berry

Hey! A fellow Austinite.

There are a few strategies here - as a former Property Manager overseeing major unit rehabs, we would play musical chairs (move tenants into rehabbed units after they were completed for a discount (I.E. 20% off 1st full month's rent).  This is managed 2 ways.

1.You can inform the resident that their rent will be going up to market value of a rehabbed unit when their lease is up, regardless of whether or not their unit is rented.  This will do 2 things, encourage them to move into a rehabbed unit ahead of their lease expiration (and fill your vacant rehabbed unit) and speed up your turnover timeline.

2. Cash for keys - you release them for liability of their lease (Texas law allows this as long as all parties agree) in exchange for a discount (I.E. your last full month will be discounted/free if you sign a notice to vacate for the end of next month).  This will also speed up your timeline and allow you rehab more quickly.

Some people will not want to move at all and there is no incentive to rehab their unit for you unless they agree to a higher monthly rent.

In those instances it is waiting game until their lease is up and you can force a rent increase.

Hope this helps.  

If Rehab heeded - go hard money

If no rehab needed/turkey you can go straight into DSCR.

With your experience level the down payments should be the same.

At the institutional level there are very few companies that do it well.

At the regional level you deal with companies that often times run out of money.

At the local level you deal with people who want to control and manage the project.

Like the above poster said - give and take - what some do well, others do poorly, and what is important to you as a borrower is ultimately who you should work with.

Hard Money companies are all fighting for market share through leverage and rate.  

Hey @Jonathan Klemm I have seen rates anywhere from 7%-9.5% depending on your expectations for the loan. 

For max leverage, you're likely looking at something in the 8s with a 720+ Fico score. 

Hey @Adriel Paradise

I'm curious to know what your current financing consists of? What kind of rate, term, and pts do you pay on your flips?

Single asset loan yes you can go up to 80% Rate and Term.

Crossed you will take a leverage hit.

Send me a message and I will be happy to assist.

Thanks,

Issac

Hey @Haneesh Lakkamsani

There are several lenders in the "Network" function here on BP.  Turning your property into an investment property can be nuanced, especially if you're looking to pull cash out of your home.

When it comes to investment loans I would strongly consider the capital backing and UW requirements. Refinancing into your LLC and using a "NO DOC" DSCR loan would take this home out of your personal name and reduce your DTI.

Feel free to reach out if you want to chat.

I know of a program that will pull out up to 100% of original purchase price (up to 70% of new Value) after 90 days.  After 180 days you can pull 75% of new value without limitation.

Hey Noa! 

Tampa is a great market- I'm still seeing a lot of deals with upside in and around the area.

When searching for a lender, not all capital is created equal.  

Ask questions about the servicer, where the money comes from, what type of loan you're acquiring, and any other qualifying questions you might ask a business partner you are about to get into a 30 year partnership with.

I believe this only applies to fannie/freddie loans.