All Forum Posts by: Jared Rine

@Brandt Thompson...assuming you're going conventional financing, and you're truly going to rent the property, just make sure you get a lease agreement signed and if you can't get a deposit, have a 1007/rent schedule done that will back up the lease, and you should be given 75% of the lease to offset the PITIA. If this is a Non-QM program, it should also default to these guidelines. If that zero's it out, or close to (maybe you're running a small negative), it should be alright, unless your DTI is extremely tight. I don't know how long you've owned the duplex, and it will depend whether it's been on your most recent taxes or not been on taxes, but there should be income granted to offset your PITIA on this property as well. If you've owned the duplex for longer than a year and it's on taxes, there's no restriction to the income that is calculated (as in it doesn't have to zero out; it can give you income on paper). An LLC is a pass through entity and it's still a residential property. You don't want to be lying on the loan application. Many lenders are able to find these things and then they'll ask you why you lied/omitted.

If your lender/broker doesn't know how to do these things above, go find a different lender.  If I could lend on O/O in WA, I'd put myself on the roster, but I cannot.  But if you need further help, feel free to PM. 

@Craig Jones..where is the property?  What other lending options have you explored?  I'd be interested to hear more about it. 

@Sartaj G...I second what @Erik Estrada mentioned. Given it's your first deal, I would recommend heavily researching especially if you're looking at buying retail. When most investors dive into commercial, retail is usually not the first space they begin. But to each their own. If I were you, research and research more. Run the numbers and then run them again. I'd start with local banks/CU's that are close to the property you're looking at especially if you're local to the market also. Then venture out if you can't find what you're looking for. These programs should all be full document that look at both the property + you financially. I might get some kickback on here, but DSCR does not truly exist in the commercial realm. Once you get over 10 units, even if you don't have to provide taxes, there is still a look at your assets, net worth, etc. Everything else is usually going to involve some type of look at you, financially speaking. I do commercial real estate lending, but mainly bank alternative programs and private money. Feel free to reach out. Thanks,

@Vi Huang...are you looking for financing for a Commercial property? Stacksource is generally fwik about them a fintech CRE loan brokerage. They have many lender relationships and find the best lender (based on the criteria you match to). They're legit and I'm pretty sure while they do charge a fee, it's paid at closing. I just checked their site and it seems like they changed up some of their pricing models based on what I had seen in the past. I'm a loan broker in the CRE space, but have never used them.

@Tomas Maira-Litran...you mentioned in a response post something that stood out. Why do these have to be no ratio DSCR? Do the numbers just not work at all? You shouldn't have to be held to a 1.25 ratio to get 7-8% rates. AS long as its over 1.00 and if it's not, there still might be ways to mitigate. Maybe it's just finding the right lender. PM if you need. Thanks

@Brant Crandall..I'm not the OP, but you cannot use SBA funds for real estate investing.  It's one of their ineligible business types for use of funds. Unless I'm misunderstanding, I wouldn't go on this chase.   While you can use the SBA program (504 or 7a) for certain real estate acquisitions - self storage, hotel and/or RV Park/campground properties (gets tricky), rentals would not work.

@Darbie Cook..as some other posters replied, it does exist but you are going to pay for it.  Many lenders have done away with sub-$100k loans and some, even higher because they don't make much money on them.  

@Krishna Shah..going to throw my $0.02 in here even though this was from a couple weeks ago.  I'd need to hear more details so just going to give some back of the napkin responses. There are lenders who can do 30 Year loans, but they are non-bank.  Most banks are going to write as @Chris Mason mentioned - 5-10 years/ 20-25 year ams in this market. 30 not so much, especially on retail. There are also banks that are staying away from office + retail even though retail sectors seem to be not hit as badly as everyone thought they would be. Some banks right now also don't like doing cash-out, especially at 70% LTV. As long as cash-flows are still good, cashing out to purchase another property should be a non-issue. His potential down payment of ~40% just depends on the numbers on the new purchase. PM if you want.

@Aaron Gallington..putting my 2 cents in here.  80% cash/out is doable, but it's very few and far between with lenders.  Most will not do it as you've seen, and you need to know where to go, and the numbers/credit/etc have to check out.  But if it does, you should be fine. 

@Marcus Clouse..I'm not an expert in your market but do a good amount of construction lending.  Throwing my 2 cents in here.  I agree with you.  Having permit before owning the land if it's raw dirt is a weird request. Usually in these types of structures from what I've seen there is a draw for the land for say ~50%, and then you get to permit (which sometimes there can be a catch up draw to the LTC for the funds you've put in), and then you can start drawing for vertical.  It's way less cost if you can figure out the land + permit and just go to a lender once you're ready to build.