All Forum Posts by: Katherine Blazer

@Campus Johnson Are you hoping to refinance as a primary residence or rental dscr loan?

There are a lot of different loan programs out there. Most hard money lenders want the loan to be in an LLC name because of Dodd-Frank regulations. You can refinance out and use a DSCR rental loan which can also be closed in an LLC.

I think it depends on where you are at in your investing plan. Do you need an extra $100 or $200 to leave on... or would the equity you have built in your rental be better used buying another property that could make up that cash flow? It just depends. There isn't a right or wrong answer; you own your first property! 

One option to get around the 6-month seasoning is to use a hard or private money loan and then you can rate and turn the refinance. Of course, if you use this idea, then you would also want to finance the rehab. You still not be able to pull cash out until you hit that 6 months hold time. 

I agree with @Jake Wiley. I would probably use the same lender, just to make sure there aren't any timing hiccups and someone not seeing the larger picture. But as long as your income can support the with your DTI it shouldn't be a problem.

Hi John, I am in Tampa Bay! I am not Spanish-speaking, but a lot of the members of my team are. Most of my team is based out of Miami. I would love to connect you with them if that is something you are interested in. 

Welcome!! Tampa is a fun market! I am out of St Pete!

I agree with @Jeff Copeland

Yes, hard money loans have higher interest rates, but if you can do multiple deals because you put less capital into each one, most people make more money. You should also talk to your attorney about asset protection benefits when using leverage. 

For longer-term rentals, the same applies. Less cash in each property means you can do more deals. Your cash flow may go down, but you should be able to purchase multiple properties. Talk to your accountant about ways to use depreciation and interest payments to help you with your taxes. 

@Frank Brown Congratulations! It's a fun industry. My favorite book on Private Money was The Banks Code. It may give you a perspective on how lenders think. 

I would say dedicate time to taking action. You can study for years, but if you never take action, you won't get anywhere. If you can find a true deal, money will come. Once you get one deal done, it will be a lot easier to find money and deals. 

I love DSCR Loans. A few things you should know and questions. On bridge loans or fix and flip loans, 90% of the purchase and 100% of the rehab... most likely up to a certain percentage of the after repair value. I would also bet they want to see you some experience or a partner with experience on this deal to do 90% of the purchase. Flipping is hard work, and they want to make sure it will hurt you to walk away. You will also be most likely paying points and have a minimum of so many months' interest payments... so make sure you factor those numbers into your costs.

On the refi side, to pull cash out, you most likely will need to season it for a certain number of months, and that will max out at around 75% ltv. You can rate and term refi normally as soon as work has been completed. Remember, you will probably be paying points on this side as well and will have additional closing costs. I do not know what they are in Cali. 

 Tim, You are the Rockstar! I am excited to have the opportunity to work with you again!