All Forum Posts by: Issac San Miguel

the problem may be the credit score. cash outs are becoming more heavily scrutinized as of late. 

you may have to find true private money. im curious why the investor doesnt do the whole thing? 

the quickest way would be to bridge it and finance the 10k in rehab.

trouble you will run into is loan size. 

if you havent closed yet, you could do what is called a recap, which pulls your initial funds out, with a rehab financed, it may make the loan large enough for most lenders  

I am starting to see these HELOC options dry up for investment properties.

You may have better luck with a refi

We are starting to hear these struggles daily. 

Another common issue is that HMLs have kept lower interest rates, and are struggling to get loans off of their balance sheets. They had the funds to originate the loan, but now that push has come to shove and rehab funds, that they did not reserve for you, after assuming they would be able to offload the loan to a blackstone or a ny mortgage trust type of note buyer, are not available to you. 

Do exactly what was said above, refi out of the loan ASAP. Go to a balance sheet lender that will keep your rehab funds specifically for you, or go to big HmL that has huge credit lines. 

banks offer lower rates and more scrutiny in underwriting, it kills velocity. 

as a hml, i hear all the time about the deal that was lost because a bank could not perform. 

the question is, what do YOU want to do. do you want to wait? do you want to scale now? is there a deal (or many) you will miss out on due to the limitations on conventional lending?

 if i were you if consult a lawyer to be sure if reading ga property code deems to be difficult. 

ultimately, in texas, if a deposit is never cashed it is to be turned into unclaimed property and filed with the state. 

not sure what recourse is available to you or to the tenant in ga  

 most construction loans are capped at 75% loan to arv. 

you are also capped by loan to cost, for new investors this can be as tight at 80% loan to cost. more experienced investors can get 90% loan to cost. 

when you finance with a rehab or construction component, the “holdback” is available for you to draw from. the amount drawn is based on your budget at the time the loan closes. 

draws work as a way to keep you liquid. 

the amount of your loan increases as you draw against the hold back. 

there is a lot to unpack, but that is the jist. feel free to reach out if you have any questions.

they arent listed at the american association of private lenders. 

use someone reputable.