All Forum Posts by: Jason Taken

Financing downpayments do make things challenging. Best option might be take out a fixed interest term loan to pay down some of the balance. Talk to your local bank/credit union. They may have options for you. Getting that portion of the home into a fixed loan might be a wise priority.

Dunno if a cash out refi would work here unless there was considerable appreciation.

This is one of the challenges with 100% financing.

0 Votes

Quote from @John Underwood:

Quote from @Michael Baum:

Hey @Devin Arrigo, there is no tax benefit for doing what you are talking about. LLCs are pass through entities.

Don't over complicate things. Just get good STR insurance and an umbrella.

If you transfer the property to an LLC after purchase, you will most likely trigger the due on sale clause. That will require you to come up with more down and an increase in interest rate.

Exactly.
Plus even if you rent to your LLC you would still be the owner.

there are some tax benefits to holding corporate functions there. But you’d need proper entity setups. I do not believe a simple schedule C will qualify you for those deductions though.

0 Votes

Los Angeles County, California

Quote from @Account Closed:

Hi everyone,

I have heard a lot about DSCR loans, which sound promising for several reasons (feel free to give your opinion if you think otherwise). However, I'm wondering how to manage the disconnect between the common >1.25 DSCR requirement and the investor's goal of acquiring properties with upside, meaning that it shouldn't start out with the best NOI at acquisition. Would a DSCR lender only look at what would be the current rent roll and expenses immediately after acquisition, or would the lender consider reasonable pro forma with upgrades/improved market rents?

Thanks for your input.

If the DSCR doesn't pencil and it's way too far off you can acquire under a bridge loan, then stabilize and refi into the DSCR product with good numbers. Often the consequence of bad DSCR numbers is just lower leverage instead of overall denial.

2 Votes

Quote from @Craig O'Boyle:

Quote from @Carlos Hernandez:

Hello I have been looking in the forum for similar questions but I couldn’t find anything if you guys have seen something similar please guide me in the right direction.

I am currently in the military and used my VA loan to buy my current home. Recently I have been offer to assume a VA loan from a friend. He will keep his VA entitlements attached to the loan. My question is does my DTI ratio is going to be a factor even if I am try to rent this property.? This a duplex where the current owner owes around 770k and he wants 60k for his equity and low rate,(2.75%). Property is currently being rented out for 5k and monthly payment is 4K so it is going to be a cash flowing property . It all sounds like a good deal but my current home and cars take around 60% of my income .

Do you plan to own or occupy the place? If you don't plan to use it as an occupant you can't assume it.

Question is a little unclear but if you're liable for the debt it goes towards your DTI. Whether you meet VA loan requirements I believe is another issue another poster pointed out.

0 Votes

San Diego, California

Quote from @Elliot Mitchell:

Quote from @Jason Taken:

Quote from @Elliot Mitchell:

Hey Everyone!

Looking for good hard money lender recommendations in the Maryland area.

Thanks!

youre going to get 1000 responses here. Can you share a little about the project and what you’re looking for in a capital partner?

Jason,

Projects will be buy and hold BRRRs. Light to moderate rehab. Maybe up to 50K in rehab cost. I have some quotes from lenders for 12% interest and 2 points at closing for a loan up to 70% of ARV. Looking for anything/anyone else that might be able to match or beat these terms.

Thanks!

That’s pretty typical. How about the closing process? That’s really where you’re going to make your money. There’s something to be said for protecting a lenders capital —- there’s another thing for taking 30 days to close and dragging the borrower through the mud with endless paperwork and underwriting.

Definitely make sure you’re vetting the processes while also being conscious of pricing.

1 Vote

Baltimore, Maryland

Quote from @Elliot Mitchell:

Hey Everyone!

Looking for good hard money lender recommendations in the Maryland area.

Thanks!

youre going to get 1000 responses here. Can you share a little about the project and what you’re looking for in a capital partner?

0 Votes

Baltimore, Maryland

Quote from @David M.:

We sold an investment property and put $ in 1031. We have a deal part 1031, part cash, for two triplexes. Would a bank finance one triplex 30-40% with $2300 rent income so we could finance renovations to the other 3 apartments in order to get higher rents ? Neither property will have any mortgage since we are paying cash essentially. One llc will initially own both properties but we will split the properties into two separate llcs later, would we need to wait to separate properties until after loan repaid or we could possibly get mortgage on just one property. 40% of one property is enough for us to upgrade remaining empty units

I had a client just do this. If there's enough spread for the rehab on the subject you wouldn't need to touch a different property to finance the rehab. It would just be held back.

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Quote from @Michelle Pepe:

Hey y'all. All my properties have been purchased using conventional loans. But I have a great opportunity in Indy and I'd love to get everyone's thoughts and suggestions as far as private lenders. $140k purchase price - looking for 80% LTV. Thanks in advance!

80% LTV is on the low end for us.

0 Votes

Indianapolis, Indiana

Quote from @Eliott Elias:

Why hasn't hard money seen the same spike DSCR has in interest rates?

Hard money is already priced conservatively and in a lot of cases its just investors earning 8-10% on their money for a year. Not quite the same economics for those longer term products. As long as a note buyer can still make a spread there shouldn't be a huge rate hike. The market demand seems to influence hard money rates while the wall street buyers for long term notes drove the rates.

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Quote from @Wendy S.:

@Robin Simon. Read. Thank you.

I could run the scenarios for you with differing downpayments, and rates. We've got a suite of products, but definitely just want to match you with the best option for you. On our DSCR products, we go as low as 10% down (cashflow permitting).

0 Votes

All Forum Posts by: Jason Taken

Jason Taken has started 51 posts and replied 304 times.

Post: Combatting rising HELOC rates

Post: Second home loan for STR -- Rent to my LLC?

Post: DSCR Calculation in Multifamily with Upside

Post: VA Loan assumption

Post: Hard Money Recommedations

Post: Hard Money Recommedations

Post: Financing newly cash purchased property

Post: Talk to me about Private Lenders!

Post: DSCR Loans: What Are They And How To Get The Best Terms

Post: DSCR loan, Florida Property