All Forum Posts by: Issac San Miguel

Quote from @Ashley Glinka:

@Issac San Miguel as a lender do you see a benefit to one over the other? I think the ARM seems a little intimidating since this is our first time through the process.

I think the benefit is the arm. as an investor, debt is your friend - at least in my opinion. 

if it was me, i’d look at  5/1 arm with a 3 yr prepay. depending on credit and dscr (let me know if you need me to clarify that acronym) rates are penciling in the 7s/8s with the investor loans that i am aware of. 

the rate is locked for the first 5 and there is no prepayment penalty after yr 3. this allows for a 2 yr period of being able to refinance the rate when it is advantageous to do so, without worrying about the reset occurring right away. 

30 yr fixed typically 50bps higher than 5/1 arms, at least with the programs i am pricing out. 

if you think rates are going to go down sooner than that, and want to float the property for another year, you can also refinance using short term money. 

30 yr fixed is available from some lenders to an LLC that I am aware of - the rates are higher than ARMs but it is completely possible to do

It only takes a few days - activefilings.com

Requesting assets is normal - I typically check to make sure balance is sufficient, but it sounds for this purpose the cash out will cover the reserves.  They need the statements as part of UW as it is likely a requirement of the servicer that will buy the loan.

That deal seems in line - I'll echo the above and say that if you are considering an exit in the first 5 years, look for a shorter prepay option.  Are you sure that is a conventional loan? It sounds to me like it may be an investment property/low doc loan at 7.35%

You might get to 75% LTV on appraised value after 90 day seasoning.

Your in place rent does not support much more than that - a lot of lenders max at 75% on cash out DSCR.

You could roll the dice and take a 12 month bridge; I have seen a lot of 5 year arms w/3 year prepays lately.

Quote from @William Neagle:

Ive managed to get an entitled parcel under contract with a subordinate agreement and I'd like to use the 1st position to obtain some cash to fund the construction. I'm desperately trying to not pull out of my severely down crypto position to make this happen. Ideally trying to stay away from conventional lending since they require the GC to manage the entire project and GC's in the area are incompetent. 40 homes under my belt in another state that doesnt require GC and I have a GC that will manage some of the project under our platform to use their license, quality control, but not to mange subs/payments.

Id prefer to pay for details out of pocket and get reimbursed at milestones from the HML.

What options do I have? 

I can make an intro if you're interested. I have a great connection for this request.

Private capital I am aware of offers DSCR at 75% LTV on cash out - reach out if you want to know more.

A lot of lender requirements will want to have the full year policy purchased in advanced or as part of closing costs.

I've got a fantastic goosehead rep that can shop it for you.