All Forum Posts by: Jason Park

I am having a hard time obtaining funding for my first project, right now I have an inherent property that I own free and clear with a vacant lot connected that's also free and clear. But I can't seem to get no one to lend me the rehab funds to complete my projects, being that I have no previous experience with fix and flips. Can anyone point me in the right directions.

I owe a mortgage bal of $126k on a property worth $375k and have about 8 years to pay it off; rate is 3.37%.

I need to tap that equity to purchase other properties. The options I'm considering are:

1. 1. HELOC at 75% LTV will give me access to $155k, but the rate is around 8-10% and is subject to going higher, considering the current instability with inflation. Pro: I will have access to the fund. Con: The rate on HELOC is more than double the first mortgage, and I worry about the rising rate.
2. 2. Home equity loan: pretty much the same as #1 but not a revolving credit.
3. 3. Cash-out refi at 75% LTV. The rate could be around 6.75 - 7.5% or so. I will be giving up my low-rate first mortgage.
4. 4. Outright sale: my least favorite option. I know I could do 1031 into the next deal, but what if I could keep the property and still take out the cash?

My credit score is 755+, so that wouldn't be an issue with financing. I am getting my ducks in a row to finance my next deal, which has to be a commercial RE (multi-family of 5+ and above). Which option would you do? I am also open to other options outside of the ones listed above.

I am looking at a property here in FL that is listed as a single family for 470k but is functionally a triplex (3/2 house with a guest house in back that has 2 units, one is a 1/1 and the other is a studio, both units in guesthouse have kitchens). I was considering doing an FHA loan as I could live in it for a year. But I was wondering if it would be better to look into private lenders. I could pull about $4500 in monthly rent. I am also certain I can get this for less than $470k. Would love to connect with someone that could offer some guidance. Also, if you are a lender or know a lender I'd love to chat! Cell: 9733091249

Good evening,

I am looking for lenders who can provide loans in rural areas for fix and hold as well as refinancing into DSCR once renovations are completed.

Hi, my name is Alison and I am a new investor. I am wondering who some good lenders would be in MD. Would a hard money loan be better without 2 years income or another way?

Hello all, 

I am looking for a loan on a portfolio of 10 rural SFR properties I am looking to get financed using a DSCR program with interest only. I have reached out to multiple DSCR lenders but was turned down because the portfolio is a rural part of the state. Does anyone know any DSCR lenders who lend in rural areas?

Wife and I purchased a residential home to renovate into a residential assisted living facility on March 1, 2024. We acquired via a residential mortgage with us to move in as primary residence. The property appraised for the purchase price and we put down 20%. We are now having a problem obtaining loans for the renovation because they do not allow for business use of the proceeds. We sought out SBA loan to acquire both the property and renovation costs under our LLC (intended for the ALF operations), but the SBA504 lender could not do it because of the current long term residential loan (could do it if it were a short term loan). SBA 7(a) lender wants 30% down and will take up to 90 days to fund.

We have talked with a few Hard Money lenders in Texas and for some reason they are saying it is not the type of loan for them - such as, they do not fund a fix/flip intended for sale to a business, seasoning, etc...  We want to get the home into a non-residential loan so we can obtain funds to use for business purposes to renovate.  We still have our previous home and can move back into it so the property will not be an owner occupied residence (although, that is the current case).

I am confused on why the national banks don't have a problem doing this deal as an SBA loan, but private money will not touch it.

Our goal is to renovate the property and acquire it via an SBA loan using our LLC for owning/operating the ALF. If there is an issue with that plan, we can simply renovate and offer to rent to an already operating licensed ALF. Can anyone provide any guidance on a lender that can do this deal?

Thank you.

Brent

I’m looking to get private money lending to purchase a property and I do have ones who may help but nothing is etched in stone yet. Should I secure a PML first before I try to get a property or should I go ahead and find a property and get it under contract then see if my PML prospects will lend?

I'm looking to purchase my third single family rental property through my LLC and am not sure how to structure the financing. I paid cash for the first property, then used a combination of cash and an equity LOC on first property to buy the second.

Should I pursue a commercial mortgage on the third property or pull equity out of the second property that I own free and clear? 20% down payment will be personal cash that I'll put into the LLC as a capital contribution. I'm assuming that I'd have to personally guarantee the mortgage as the LLC is fairly new (18 months) and the cash flow from the property is not especially compelling given the current high interest rates.

I have stellar credit and own my personal residence (valued approx $950k) free and clear, so it would be easy for me to get financing personally to purchase it and then transfer to LLC, but that sounds like that could be messy. One final option would be to take a HELOC on my personal residence (approx $350k would be needed) and contribute that to the LLC as a capital contribution and use that to purchase. However, then would that interest be deductible as an expense of the LLC?

Appreciate any thoughts.