All Forum Posts by: Margie Cindy Santos

Hi Rogelio, 740+ is not bad at all for Hard money. We typically go up to 90% of purchase even for first timer with that credit. Happy to chat!

Hi Kyle, is the primary residence generating any income (like a househack)? If not using leverage should give you more upside for both cash flow and equity (albeit off course more risks). If you have the risk tolerance, then you should be able to to make a higher return given your investment will have positive cash flow.

Hi William, when you say "not having good cash out options", what kind of terms are we talking about?

In general, if you have a cookie cutter deal and good credit, you can qualify for a hard money loan that will finance most (75-90%) of purchase price and 100% of rehab (on draw basis). Using your home equity may be a better though if you have enough equity.

BRRRR is definitely more advanced then a regular rental purchase. If you have the patience and time, starting with a rental is definitely less overwhelming. I found great confidence from starting from easy rental first before doing a BRRRR.

Hi Eli, every investor is different and I've seen different seasoned investors keep or refinance in the same scenario. It would really depend on your deal flow, income and liquidity. For example, if you have a homerun deal to purchase and you need this cash, it may be worth it. However, if you are already liquid and you don't have strong income or strong reason for the 25k, it might not make sense to refinance.

Hi James, most of our clients choose with 30 year fixed over ARMs. On some programs, the ARM may have better rate (by 0.125-0.25%) but on other it may be the same. Most investors won't pick the ARM unless there's considerable rate advantages as most ARM programs are fixed for 5+ years

Hi Emmanuel, DSCR lenders I know of, always go off of lower of purchase price and as-is value. You could purchase with hard/private money (for example 10% down), put a bit of rehab, then immediately cash out refinance at 75-80% value to recoop all your initial investments.

Hi Tammy, yes, there is DSCR on Commerical properties (light doc commercial program) - some will go off of DSCR = NOI/PI calculation and some will go off of DSCR = Rent/PITIA. However, if it's an owner occupied commercial (owner is running a business in the building), typically the DSCR program no longer applies. In this case you can use a bank statement program - use 12-24 month average of the bank statement as income and qualify based on DTI.

Hi Nick, I like your story. You're moving like a seasoned deal hunter already! Here's how I'd think about moving forward:

1. Run the numbers - ARV (get comps), repair costs (walk the place again with a GC if you can)

2. Due Diligence - are taxes current?, free from liens?, age of roof, HVAC, electrical, etc.

Depending on what will be your final decision whether BRRRR or flip, Hard money lenders can help you out on this one. Happy to assist!

Hi Sebastian, yes you are on the right track. There were special programs nowadays which doesn't require W-2 income.

1. Do a cash out refi on one or more properties - these funds could become your new down payment source

2. DSCR programs based on property cash flow and can go lower than 20% down depending on terms.

Hello Johana, you can look for a local Real Estate Agent to help you with getting the average Price per Square Foot of Top 3-5 renovated comps in the area multiplied by the square footage of the property = your ARV estimate.

Rental prices can vary significantly depending on the neighborhood and/or by bedroom count. Happy to assist you!