All Forum Posts by: Mark Munson

I am 18 and I have been doing a bit of reading on real estate investing and have came across information on acquiring loans. Most loans to my understanding need 2 years of tax returns. I have a business that is doing very well and have a steady stream of income and want to acquire an investment property. I guess my question is how can I get financing for a property if I have only had a business for 1 year. I have read about cash flow mortgages and I know I don't need tax returns for that but I was just wondering what other financing options are out there. Does hard money require tax returns? Can I buy the property through a LLC and use business tax returns? Just reaching out really to see if anyone has any answers. Thanks!

I would recommend you start establishing tradelines (credit cards, loans that report to credit bureaus, etc.) as even a lot of HMLs will want to see those for the best HM programs out there, especially with DSCR loans, as they get sold to Wall-Street and those buyers want guarantors with tradelines.

2 Votes

Quote from @Eliott Elias:

Hard money typically lends for a 6-12 month term, look for private money or a cash out refi.

Not exactly true, many HMLs offer 2 year loans with a 1% interest rate increase difference between a 12 month term.

1 Vote

Cleveland, Ohio

Hi @Rebecca Readus

I'm in Orlando too and own a mortgage brokerage in Winter Park. I'm very well connected with the wholesalers here, I'd be happy to put you in contact with a few and point you to the right events as well.

4 Votes

Orlando, Florida

BRRRR - Buy, Rehab, Rent, Refinance, Repeat

Post: Cash-Out Refi Question and Need Some Help

Mark Munson

Posted March 28, 2023 07:41

Lender
Orlando, FL
Posts 434
Votes 298

Quote from @Spencer Tanaka:

@Mark Munson thanks Mark. The main purpose is actually to do two things with the cash… help fund a new primary in Denver, CO and to assist with the down payment we need or to purchase a new rental in Indy as a SFH or STR. To your point, I'll need to do a deeper analysis on the payoff of the $40K I can pull out to see if it is worth it, but was initially posting for a gut check.

I keep hearing that rates will drop end of Q3/Q4 from my lender…. Not to pandemic levels, but I could stomach a 5% rate better than 7.6%

No one has a crystal ball on rates, but I don't see any world where your rate today at 7.6% drops to 5%. Feel free to message me, happy to go in more depth and give any color I can on the rates.

0 Votes

BRRRR - Buy, Rehab, Rent, Refinance, Repeat

Post: Cash-Out Refi Question and Need Some Help

Mark Munson

Posted March 28, 2023 07:00

Lender
Orlando, FL
Posts 434
Votes 298

Hi @Spencer Tanaka

How much is the cash flow every month with the 7.6% rate? And the other question is what can that equity do for you on the next deal? Can it access a flip with a nice ROI? Does that next deal have a great cash on cash return? Etc...Basically, what I am saying is it is hard to answer your question without having an opportunity (another deal) to compare it to. I am in the lending space and can tell you if you are waiting for rates to drop, you may be waiting a long time unfortunately.

1 Vote

Quote from @Alejandro DIaz:

Hello!

New investor here looking to buy my first property. I am in the process of setting up a trust. During my conversation with the attorney, she mentioned that it's rare for investors who finance property to buy a property with an LLC since lenders rarely allow that. She said I'd likely have to buy as an individual and take out an umbrella insurance policy for liability protection. Has this been your experience? Do people just quit claim deed the property to the llc afterwards or just hold the property in their name? I'm in Florida if that helps at all.

Like others have said, just use a hard money/DSCR lender, as those lenders lend directly to LLCs. With traditional banks, you will eventually get capped at a certain number of loans or a dollar amount, whichever comes first. This is called "One Borrower Exposure", the banks don't want to be over exposed to one person, thus the rule. You won't run into this the same way with some DSCR lenders.

1 Vote

Fort Lauderdale, Florida

Quote from @Michael Elliott:

Quote from @Shawn McCormick:

@Michael Elliott

Solara is just one of many resort communities that are specifically built for STR. A few of the other top communities that you want to consider are Championsgate, Solterra, Windsor Island, Windsor Hills, Paradise Palms, Windsor at Westside, Storey Lake. These are all STR communities that have similar amenities, close to Disney and have various sized homes that do well in the STR space.

None of these communities will be changing to residential neighborhoods, although a couple do have residential 'sides' that full time residents live in and can not be rented short term.

Two of the big communities that you will have some issues with self managing are Reunion and Margaritaville. These both have restrictions on membership/guest amenity usage. I personally would stay away from condo-tels as they will be even worse and you'll have less opportunity to cash flow.

Hope this helps, best of luck!

Thanks Shawn. I mistakenly said Enclave when I meant Encore. Do you have any thoughts on Encore? If I self-manage at Encore, do our guests get access to water park?

Hi @Michael Elliott

We have financed about 15 STRs in Encore for a client and I have another friend buying the second largest unit and the largest lot there. Let me know if I can help in any way.

0 Votes

Orlando, Florida

Quote from @Jaime Carpenter:

Quote from @Mark Munson:

Hi @Jaime Carpenter

If you are paying cash, just make sure when you are refinancing you are meeting minimum loan amounts. Ideally, you will request at least $75k to have the vast majority of loan options available to you, as that is the minimum for most lenders. Keep in mind this will be comped as a tri-plex too, not as a SFR and a duplex. If they are all on one parcel, the appraiser will comp as a tri-plex. I did 3 detached SFRs on one parcel in Indy, so I've done this recently.

Gotcha! So when the time comes for me to do a cash out refinancing the amount needs to be at least 75k?

Not necessarily, there are probably some DSCR lenders that will go as low as $50k. In my experience, most are at $75k. If you want the best programs, then $75k is probably what you should be aiming for, in my opinion.

1 Vote

Indianapolis, Indiana

Quote from @Kj Rustom:

I am considering a few loan programs from Seabury Investments and they seem to have decent rates and terms. Wanted to check in with the community if anyone has worked with them before and how did these guys perform?

https://seaburyinvestments.com

TIA!

Have you received a term sheet from them or are you just basing the "decent" terms off of their website? I ask because there is no way they are offering 6% on Fix and Flip loans. They would be bankrupt doing that and also allowing the borrower to order appraisals is a recipe for a BK.

2 Votes

Atlanta, Georgia

Quote from @Jonathan Farber:

Hello BP world. I know you can receive a commission as a real estate agent / broker if you have a license and refer business to someone, but does the same rule apply to mortgage lenders/brokers.

Example - you have a lenders license and know someone ready to buy a house, you refer them to another lender - can you be paid some finders fee in this example?

Thanks

If they are non-owner occupied commercial loans, you can set up a referral or broker channel. Just make sure the lender you work with has a referral agreement or broker agreement, if they don't then I'd not do business with them. You want the agreement to be between you and the actual lender's name, some lenders are unethical and use shell-LLCs to execute the agreements so they can solicit your clients in the future and avoid going against the agreement. You want language in the agreement in regard to soliciting your clients, you should be protected for at least a year from the last loan you referred or brokered and you should have the ability to reengage the client if the client tries to circumvent you. There is a lot more to look out for, so message me if you need any feedback.

0 Votes

Fort Lauderdale, Florida

All Forum Posts by: Mark Munson

Mark Munson has started 0 posts and replied 415 times.

Post: Mortgage options for a 18 year old

Post: Pull Cash Out of Paid Off Duplex

Post: What is the best way to network with wholesalers and contractors?

Post: Cash-Out Refi Question and Need Some Help

Post: Cash-Out Refi Question and Need Some Help

Post: Can you buy property with an LLC?

Post: STR's in Kissimmee, FL

Post: In need of a rehab only loan: Indianapolis: "BRRRR" on SFH and MFH on the same Parcel

Post: Anyone familier with Seabury Investments?

Post: Is it possible to make referral commission recommending a lender?

Mark Munson has started 0 posts and replied 415 times.

Rounded Star Post: Mortgage options for a 18 year old

Rounded Star Post: Pull Cash Out of Paid Off Duplex

Rounded Star Post: What is the best way to network with wholesalers and contractors?

Rounded Star Post: Cash-Out Refi Question and Need Some Help

Rounded Star Post: Cash-Out Refi Question and Need Some Help

Rounded Star Post: Can you buy property with an LLC?

Rounded Star Post: STR's in Kissimmee, FL

Rounded Star Post: In need of a rehab only loan: Indianapolis: "BRRRR" on SFH and MFH on the same Parcel

Rounded Star Post: Anyone familier with Seabury Investments?

Rounded Star Post: Is it possible to make referral commission recommending a lender?

Post: Mortgage options for a 18 year old

Post: Pull Cash Out of Paid Off Duplex

Post: What is the best way to network with wholesalers and contractors?

Post: Cash-Out Refi Question and Need Some Help

Post: Cash-Out Refi Question and Need Some Help

Post: Can you buy property with an LLC?

Post: STR's in Kissimmee, FL

Post: In need of a rehab only loan: Indianapolis: "BRRRR" on SFH and MFH on the same Parcel

Post: Anyone familier with Seabury Investments?

Post: Is it possible to make referral commission recommending a lender?