All Forum Posts by: Maddy Lakshmanan

@Maddy Lakshmanan Right now in the US, there are pretty much two types of lower-doc investor loans, Bridge (short-term, higher interest) and Investor Cash Flow (aka DSCR, longer-term, medium-level interest. Depending upon the amount down, your experience, your credit score, the property, prepayment penalty, etc, you're probably in the high 7%s to the mid-8%s. There are a lot of factors that go into the rate. "Hard Money" is really for a short-term bridge.

I like the sound of that strategy. I'm working out how to buy what will be my first deal and if I can't find any private money from someone I know, I might need to look at hard money. Where are some good places to find hard money lenders? My overall exit with the place is to to brrrr it as well so ideally less than 6 months in and out of the hard money. 

You missed the most crucial element. How are you going to run your numbers on the acquisitions? This Order or operations works, what you need to focus on the most is buying right.  

10.99% with only 1 point at 85% LTV is not a bad deal right now in this day and age for a bridge loan. If you're doing a longer-term loan, you can certainly do better, but for a short-term bridge, that's not bad.

Plummet?  I mean, I live here. Home prices have increased over 40% in last 5 years...

I would say it's more a returning to realistic. Buy low sell high isn't it?

That being said, Phoenix is in high demand and will be for the foreseeable years. Thank you California :)

Also, the infrastructure, apartments and businesses here now, make it a different environment then 2008.

It is competitive, so I wouldn't buy now unless you have a clear plan.

Hey @Maddy Lakshmanan

I have seen a lot of lenders that I partner with start to cut back on LTV in certain areas due to declining markets and this area being one of them. like @Sean Bozigian mentioned, if you plan to hold these properties this could be a really good time to buy. It seems like the inventory is super low though, so I would imagine its hard to find deals in that area. I think if you can find the right deal at below market price, it could be worth investing. A client of mine owns a few STRs in the Pheonix area and they bring in great revenue.

just my take on your current situation 

JB