All Forum Posts by: Ko Kashiwagi

Hi Joehn,

Have you brought any of this up to the seller? If you structure this at a good price, it could be a sweet deal. And do you my experience in construction?

Hi Sherrie,

DSCR rates are likely close to 7-9% range. However, DSCR requires you don't live in it so this is not an option on the primary. Also, how would you qualify for FHA refinance but not the HELOC? They both have DTI requirements. Alternatively, do you have equity in the Joshua Tree House?

Hi Lucas,

No, you don't need to use hard money financing on your BRRRR and you can use cash on the first purchase. It's less leverage but also allows you to carry less risk as hard money financing come with risk. If you are willing to save up to 80k, this is totally ok

Hi Brett,

It's probably best to get bids from a few other contractors just to see if that budget is within normal range. If it is normal and it's out of budget for you, you can either use financing to lower your cash outlay, partner up, or find a different property.

If the work is cosmetic, it wouldn't be a big issue to tackle on your own, but if it's more than that, probably best to play it safe and hire out.

Hi Andrew,

Congratulations on doing many deals! If you are looking for local private money lenders, you'll find them at local meetups. Also many private/hard money lenders on BP Find a Lender Tool tab.

Hi Cameron,

You usually get a short-term (12-24 month) loan and pay off the loan using the proceeds from the sale. The payoff is done in one transaction from the escrow.

Hi Daniel,

Most agents are not investor friendly but it wouldn't hurt you to try to find one to build a relationship with. Many people purchase without an agent at first, and as long as you know your strategy & numbers it is reasonable.

Hi Chris,

More often than not, the appraisal doesn't change much on a rebuttal or a second appraisal, but there are cases appraisals are wrong. If you believe the appraisal is completely wrong, you can order a new appraisal.

When you say 75% LTV, do you mean 75% of ARV or 75% of purchase price? Most lenders are capped at 70-75% of loan amount in ARV, but there are lenders that will go up to 90% of purchase and 100% of rehab.

Hi Sam,

Many purchase & rehab financing will consider ADU construction as part of a medium/heavy rehab, rather than a ground up construction. What does your experience look like? Are you saying you owe exactly 100% of what the property is worth? Most lender will want to see 15-25% equity in the deal to do the bridge. Alternatively, you could use other assets as collateral

Hi Parthenia,

As you mentioned, most STR lenders that can do 15% down have shorter amortization. I do hear about 30 year amortization 15% sometimes, so I'd assume it's offered somewhere. A good way to check the lender would be look them up online and see their reviews!