All Forum Posts by: Kelly Beck
Kelly Beck has started 7 posts and replied 33 times.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Sure...https://www.homemortgagespecialists.com/ and I discovered they use United Wholesale Mortgage, which is who was also recommended to me...so it looks like only one place. Just make sure you understand the fees involved.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Quote from @Erik Estrada:
I think it will be more cost effective getting a HELOC or Closed end second on your current residence or other rental property you may own.
But the main issue with the smaller deals is not being able to take your money out of them. The rental income might be great, but unless you have a lot cash to deploy, you will be stuck.
Thanks for your feedback, Erik. We'll be contacting a few low-amount DSCR places that were recommended to us. We do have a Heloc so we'll be utilizing that, as well.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Quote from @Stanley Yeldell:
Hey Kelly, love the slow flipping model—super smart in the right markets.
Most DSCR lenders have minimum loan amounts between $50K–$100K, so sub-$30K is definitely tough. That said, a few portfolio lenders, credit unions, or community banks in the local market might be more flexible, especially if you can show consistent income from the land contracts.
Another option: bundle 2–3 of your performing notes and refi with a blanket DSCR loan, if the combined value meets the lender's minimum.
Also worth connecting with private lenders open to low-balance long-term rentals—they’re usually more flexible on loan size and structure.
Would you be open to creative financing or JV structures on future deals? I fund deals and may have some ideas to bridge this gap.
Thanks for the recommendations, Stanley. We were told a few DSCR places that will do $30K and under so we're going to try that route, but possibly bundling, as well since we have 2 under contract. The PML route has been a challenge due to so many people thinking real estate investing is "risky"...compared to what? Is typically how I respond, but they are just not our lenders.
We're not open to JVing at this point, but would like to hear more about possibly some other creative options.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Quote from @Joe S.:
Quote from @Kelly Beck:
Quote from @Patrick Roberts:
Friends and family SDIRA money is your best bet. Aslo, most DSCR lenders are going to take issue with you selling the property they financed on a land contract/CFD regardless of the loan size.
A similar strategy is to get bridge financing in place at acquisition, then wrap the underlying with seller financing, after which you sell off part of the wrap loan to pay off the underlying bridge. The problem you'll likely run into in your particular case is that note buyers are not going to want to buy notes secured by collateral in this price range. No one wants these properties.
Thanks for your feedback. We do use friends with SDIRAs but are always looking for multiple streams of lenders for when we have several properties under contract. We've never used the DSCR but from what I understand, as long as the amount coming in on a monthly basis is more than enough to cover the monthly payments, that's what the MLO's are looking for. We buy at $30K and under and sell on average around $80-100K, with monthly payments around $875. I have found a few that are recommended to contact, so we'll see. And I'm assuming you're saying lenders are who don't want these properties...I think they're missing out on opportunities.
Kelly, have you already done some slow flips!
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Quote from @Patrick Roberts:
Friends and family SDIRA money is your best bet. Aslo, most DSCR lenders are going to take issue with you selling the property they financed on a land contract/CFD regardless of the loan size.
A similar strategy is to get bridge financing in place at acquisition, then wrap the underlying with seller financing, after which you sell off part of the wrap loan to pay off the underlying bridge. The problem you'll likely run into in your particular case is that note buyers are not going to want to buy notes secured by collateral in this price range. No one wants these properties.
Thanks for your feedback. We do use friends with SDIRAs but are always looking for multiple streams of lenders for when we have several properties under contract. We've never used the DSCR but from what I understand, as long as the amount coming in on a monthly basis is more than enough to cover the monthly payments, that's what the MLO's are looking for. We buy at $30K and under and sell on average around $80-100K, with monthly payments around $875. I have found a few that are recommended to contact, so we'll see. And I'm assuming you're saying lenders are who don't want these properties...I think they're missing out on opportunities.
Quote from @Joe S.:
Quote from @Kelly Beck:
Anyone invest in the Meridian area? We're looking to branch out there for low-cost owner financing properties (offering financing for those renting). I understand there is crime there, just like many low-cost areas, but I reached out to a rehabber about taking some photos of properties for us and he told me to look in other areas because of the high crime rate and that "it just keeps getting worse."
Is it really that bad there? Anyone with actual familiarity of the area is appreciated. Thanks!
We do, however, we have a lot going on in another state so we've put MS back on hold again.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
Quote from @Ned Carey:
@Kelly Beck I doubt you will find this. However you may find many DSCR lenders willing to do a loan on several properties at once to meet their minimums.
Post: $30k and under DSCR loans
- Posts 33
- Votes 13
We do something called slow flipping where we buy properties under $30k and sell them on land contracts. I know it's very few and far between, but does anyone know of a company who would do DSCR loans this low? And we're not looking for hard money lenders.
Thanks!
Post: Real Estate professional logbook example
- Posts 33
- Votes 13
Quote from @Sean O'Keefe:
@James E. @Clive Smith I have a sample log in format that follows the IRS Audit Techniques Guides (ATGs). Let me know if you'd like a copy.
Hi Sean, I know this post is old, but could you please send me this log, as well? Thanks!
Post: Storytelling Method: Talking with potential private money lenders
- Posts 33
- Votes 13
Thanks for your response @Jeff S. I agree with what you shared about being myself and I would be....when I would get to the opportunity to sit down with a potential lender. It wouldn't feel natural for it to be contrived. (Side note, we had a great lending partner but he's involved in a pretty large investment right now, so we are looking for new partners).
What I'm meaning is...when an investor is putting out there that they're looking for lenders, how are they connecting with potential partners (maybe using storytelling) to get to that one-on-one meeting stage?
After listening to one of Brandon Turner's interviews with Colin Boyd, I don't think we're targeting the right people...most of our friends/family/community members who are in our circles are Christians and while that's good that they are concerned with their financials, Colin said that (in a nut-shell) they may not be the best people to target as potential lenders.
We keep hearing from everyone "how risky" what we're doing is...investing in real estate...and no one is even open to having a conversation about the securities we put in place, how money in the market isn't protected at all and about how we're helping people in the meantime.
Does that make sense?
I think we need to begin going to REIA groups, or connecting locally with business relationship management consultants at our local bank. Any other suggestions?