All Forum Posts by: Jacob Sherman

I just have a quick question on the post rehab ARV importance when refinancing into a DSCR. Basically the property we just purchased had a SOW that we've just been told, basically, cannot be done within our rehab budget. The contractor we had working with us on our SOW for the loan and was to do the project ghosted us and bailed and now we are being told by new contractors we are getting bids from that our initial plan requires way more work and finances than we were told. We were planning to convert an already existing tri plex into a 4 unit by splitting one of the units and then adding a 2nd bathroom in another unit. These current contractors that are giving us estimates are saying we need architectural plans to create the 4th unit and a sprinkler system…so that plan is shot. We went back with ‘ok lets not divide the unit but just add the extra bathroom in an already existing laundry room that already has plumbing" and again being told this requires architect plans. At this point this project has already been delayed almost 3 months and the rehab hasn't event started. My question is that is there going to be an issue when we the rehab is done and we refinance if we don't hit that rehab loan ARV? As we aren't going to be able to convert into a 4 unit or add an additional bathroom I don't see how we can hit that ARV now, other than now we do have to do a new roof, which wasn't included in the initial valuation.

Any assistance is appreciated, this whole project has me losing my mind….

I often hear stories on the BiggerPockets podcast about investors calling dozens of banks to find creative financing solutions (things like no seasoning requirements, blanket loans, portfolio lending, etc.).

I'm curious how this works in practice. Wouldn’t contacting so many banks result in multiple hard pulls on your credit report? Or is there a way to ask the right questions before submitting a full application?

Any insight into how experienced investors navigate this process would be greatly appreciated. I’d love to learn how to do it efficiently (and protect my credit at the same time).

Hey all, I have not closed a conventional mortgage for investment purposes before. I currently have a deal under contract and am working with a lender. I used this lender before for my personal residence and was pleased with them but currently they are wanting to charge me 7K in fees on top of closing costs. I have a duplex under contract for 215K, 25% down (54k), closing is 7K, and lender points and fees are 7k for a total of $68,000. Interest rate is around 7.125%.

Do these fees seem unusually high or am I just out of touch with current lending costs? Any thoughts appreciated.

Thanks