All Forum Posts by: Kyle Deutschmann
Kyle Deutschmann has started 8 posts and replied 387 times.
Post: Hard money lender
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Allen Zhu:
Is hard money lender worth it for first time investors? The company I'm looking at changes 10% just wanna get some info!
Thanks in advance!
Hi Allen, when I got started, I used a 3% down conventional loan to buy my first property. I house hacked then rented it out after a year. I'd recommend this strategy for a new investor vs. doing a HML on your first deal.
If house-hacking is out of the question/you already own a primary at the very least, then that sounds like a pretty solid option/interest rate (although I might be able to beat that...). HMLs are a higher risk loan product that are meant for experienced investors although many will still lend to new investors. Typically has a balloon payment due in 6-12 months, so you need to ensure you're ready to get it rehabbed and sold (or refinanced) quickly. Do you plan to flip it or hold as a rental?
Post: Hard money for fix and flip
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Brandon Dionglay:
Hello all!! This is my first post on here and excited to share my real estate investing journey with the best partner in the world, my wife.. we are looking into buying our first investment property via hard money. We have cash in available however I'm seeing that when applying for a HML you need proof of liquidity. My question, if it came down to it, will home equity suffice? Looking forward to the knowledge that you vets can provide!!
Hey Brandon, welcome to BP! As others have mentioned, you typically need some liquid capital to get a deal done even if a hard money lender was funding 100% of the deal for you.
You'll need money for: closing costs, down payment (if any), operating capital to get the construction/rehab started (most HMLs reimburse you in draws for the work completed), along with some liquid reserves on top of that. Pretty reasonable when you think about it.
Happy to chat if you have additional questions.
Post: Refinance portion of brrrr
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Troy Smith:
I’m almost done with the rehab on my first brrrr property. When should I refinance? Should I wait until it’s rented first or just start the refinance process right away?
This is my first Brrrr
I'd start the process to get the appraisal ordered and try to get a tenant in there before closing on the refi, otherwise the lender may lower the max LTV
Post: Regarding Hard money Loan
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
$42k closing costs? That's wild. Who's the lender?
Post: beginner sellers finacing and HML fix an flip
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Paige Gardner:
Hello, I have a question regarding about one of my strategies to get started in real estate without using a lot of money. S so I already have a hard money lender that accepts sellers financing deals however they would like to be first position. They are going to put 75% of the purchasing price. Am I able to do a seller's finance for the remainder 25% with the owner and then do a balloon payment at the end of my term with both the seller and the harmony lender when I flip the property. Is a strategy a practical one, especially me starting out as a beginner?
As a beginner, I would personally get my feet wet with something a little less risky without a balloon payment like that. I started real estate investing by house hacking and then getting into rentals from there. With an owner-occupied loan, you can buy a house with 0-5% down and get 30-year fixed rate financing so you're not dealing with adjustable rates if rates go back up and not dealing with a balloon payment in 6-24 months which is plenty of time for an experienced investor but not a whole lot if you're new.
That being said, if you'd like to look at higher leverage on bridge/hard money financing for your next rehab project, I'd be happy to chat further.
Post: DSCR loan for STR
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Danny Barnhart:
I am looking for an investor that does DSCR loans. Please contact me.
An investor or a lender?
Post: Refinance my rental property
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Joel Barjon:
Hey guys,
I hope everyone is doing well. Can someone help me with that question: will a bank refinance a rental property under llc? If not, what will you suggest me to do? I will appreciate your insight. Thank you.
Depends on the bank! Some lenders only lend to individuals. Private lenders, like who I work with, prefer to lend to properties held under an LLC.
Post: Newbie excited to be here!
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Zaheemat Samuel:
Greetings everyone 👋🏾,
My name is Zaheemat but folks call me Zee. Excited to be joining this community and looking forward to learning and building great relationships.
I live in Maryland and interested in starting my real estate journey this year with a multi-family unit in Maryland.
I'm not sure if it is realistic but setting my goals for this year at making it to 6 doors in 2025 (tell me if I'm crazy lol. am I reaching too high? 🥴). Would like to make some cash flow but understand holding the properties for 3 to 5 yrs is what will provide me the profit margins I'm looking for.So I'm all in for holding.
If you've been doing this for years and have capacity for a mentee, I would be honored if you would consider having me 😊.
I am currently attempting to build my team and have already identified a real estate agent to help with locating properties (he is also a real estate investor). I'm a bit at a loss how to get started with financing so any advise here will help. I plan to leverage conventional or commercial loans?.. do I just go talk to several banks and see who has the best financing products and then get a preapproval from that bank?
I also found a CPA recently but she's not a REI CPA as I've seen suggested often as I didn't even realize there was such a thing... would you recommend I find a new one the specializes in REI?
Also, someone suggested getting an LLC for each property I purchase but that seems like a lot... is that standard practice to do that and then just have all listed under a holding company?
Thanks for taking the time to read my note and provide any feedback!
Regards,
Zee
Welcome to BP! Starting with a small house hack using conventional financing was how I got started and then grew from there. I no longer personally do conventional lending, but I know several great local lenders I could recommend to help you with this strategy.
I see you're also in Maryland- where in MD are you looking?
Post: Looking for a lender for a HELOC on an investment property
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Ryan Miller:
Does anyone have a suggestion on a lender that will do a HELOC on an investment property in Maryland? The property is used as a STR, cash flows, and is free and clear.
Thank you!
Your best bet is finding a local bank to do a commercial line of credit using an investment property as collateral. I found one in TN that did that for me, but they only lend in a small geographic area in middle Tennessee so unfortunately they likely won't help in this situation.
Alternatively, you could do a cash out DSCR loan and just keep the excess cash in a high yield savings when not using it so it's liquid and ready for the next deal/project. You'll get a better interest rate that way. My commercial line of credit with that bank is variable at prime + 1 (so 8.5% currently). That's the other downside of a line of credit - my rate kept going up every time Jerome Powell opened his mouth the last few years, up until this past fall when he reversed course.
Post: Best current commercial lending options for small/mid-sized apartments?
- Lender
- Baltimore, MD
- Posts 417
- Votes 205
Quote from @Andrew Bosworth:
I am considering a 12 unit multifamily property in my home market of Harrisburg, PA.
I am looking for recommendations for best financing options.
The owner is considering financing it, but until they agree, I am planning as if they will not do so.
The local credit union I use, who is very investor friendly, is unable to lend on properties larger than 4 units right now. Other local lenders I have used recently do not have very favorable terms. This is limiting my options.
I have never utilized the multifamily lending products offered by Fannie, Freddie, etc., so I would be interested to a) hear other BP members' lender recommendations for this sized property and also b) other members' experiences working with Fannie, Freddie, etc.
This is a fully stabilized property, with upside in rent in a B+ location. The loan would be $1M+.
If you need to close quickly I can help! We do a post-closing appraisal on 5+ unit deals, so we can help with a bridge loan for the acquisition and close within a week or two. And then you could take your time shopping for long term financing once you own the property. We can also include rehab financing, if there is any value add opportunities with this deal you have on the table.