All Forum Posts by: Ko Kashiwagi

Pretty rare but does exist. Recently helped a client with less than 50k but loan amount was more than 100k as there was rehab budget.

Hi Gerald,

As you may have encountered, options for short term bridge for less than 100k is limited. With that being said, it is out there and private financing is also available. The key would be to properly line up a plan (Scope of work, contractor, exit numbers)!

Hi Jake,

Refinancing the SD home is likely the lowest rate you'll get but this probably doesn't make sense since you have a 4.25% mortgage. DSCR should be in the 7's and possibly even the high 6's if it qualifies. HELOC would have a higher rate (9's-11's on average) but if you have a specific strategy for it it may make sense. As for the cash out refinance, you don't have to put the property in an LLC to do DSCR

deal check has rental and BRRRR calculators and is free for most features. Also like to run it by a spreadsheet for checks

Investment Info:

Single-family residence buy & hold investment in Tuscaloosa.

Purchase price: $145,000
Cash invested: $29,000

SFH in Tuscaloosa, AL! Almost bought myself a property with a major leak because the seller sent proof with receipts but I dodged a bullet when I conducted my own re-inspection!

What made you interested in investing in this type of deal?

Great location, focus on ROE with a plan to refinance out in 3 years.

How did you find this deal and how did you negotiate it?

My stellar agent I've been working with over the past couple of months

How did you finance this deal?

DSCR Loan!

How did you add value to the deal?

Buying at the right price lead me to gain 10k in equity just from the buy. Also negotiated seller concessions so I had minimal cash out of pocket.

Lessons learned? Challenges?

Verify, verify, verify! My seller was supposed to fixed the main sewer as we found out leaks during inspection. The seller sent invoices and pictures, but my gut instinct told me to verify so I got a re-inspection. And guess what? The leak wasn't fixed at all!! I know it's a pain to pay the extra couple hundred dollars for re-inspection, but it's always worth it to double check and confirm on your end.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent Jodi Caroline!

Making sure the lender has references and credibility is important! A lot of factors go in to loans including ease of process, communication skills, closing timeline, variety of options, flexibility and off course rates & terms

Building a good team is key!

DSCR financing would be the way to go for LLC vesting! Plenty of people that should be able to help you. If you click on "lender" above, you'll be able to put inquiries

DSCR is a great option. You could go 30 year fixed and some offer adjustable like 5/6 ARM. If you believe rates will be lower in 5 years 5/6 ARM is not a bad option, and I know some lenders have rate reductions if you go 5/6. Best to compare programs based on rates, reviews, communication and terms!

It sounds like your lender is more so a conventional lender/bank. For flip projects like you mentioned, it's best to talk to brokers/lenders specialized in hard money financing. Whether you should use a hard money, broker or private money would depend on your goals & priority (speed, communication, pricing, etc) so highly recommend considering a variety of options!