All Forum Posts by: Jonathan Taylor

@Kristina Szwaja I do not have a DSCR lender who would credit 38k. At 75k asking, you can put 25% down (18,750) and negotiate with the seller to refund the 38k after closing. That would solve your issue but also, the property value is so low, only a few DSCR lenders will originate the loan.

@Constancia R. Ill reinforce what has been said here. 25% down is realistic in this market, I do not know of a lender who can pencil out a DSCR at anything more than 75. Consider all options, leveraging your duplex or bringing in a partner.

What is the purchase price and what numbers have you run?

@Nikita Odnoralov F/F lenders may go as little at 15% down but there isn't enough info to say for sure. @Brett Deas is right. The lending market for F/F loans are not great at the moment so if it can work at 20% down and you will have it listed in a month, may be worth it.

@Ronalyn Recaido if you buy a multifamily, you can use 75% of exisiting rents to your income for your DTI but if you are planning on buying a primary and renting the rooms, no lender will include those rents toward your income.

Since you are a few years out, look up naca.com. May be a good fit. I used this company to buy my triplex. 

@Ravi Kumar the post is too broad as we are all looking for good ROI. Do you have questions about financing this asset, managing tips, deal structure? Please provide more clarity so we can help.

@Jeffrey Gomez DSCR loans are great tools for investors as personal income, tax returns nor DTI are included in the qualification but your post was a bit vague, what questions do you have regarding this loan product?

@James Sloan can you provide more details please? Full doc agency debt can be non recourse with bad boy cutouts but these are usually for higher balance loan amounts (roughly 2m +)  on large assets (MF 50+, industrial, strip malls, type 2 commercial basically) For 1-4s or 5+ MF loans I have done, have all been full recourse. 

Please explain your property and deal so we can better guide you on options.

@Cherie Tormey The acreage kills this deal with national lenders so I agree with @Stephanie P. try local banks/lenders who know the area better. 

@Wander Gomera what are your goals and questions? Happy to help but if you can provide a bit more info, that would help us both.

STR lending for first timers is a challenge in this market. If you are buying an existing STR with at least 12 months of operational history (receipts from VRBO/Airbnb etc) there are lenders willing to lend on that scenario.

Im biased but agree that working with a broker is a better option. Since we do a lot of volume with our lenders, we get wholesale rates, vs if a borrower went direct, they get retail rates. So working with a broker, you get access to lenders you may not be aware of and lower rates than if you were shopping on your own. Win-win