All Forum Posts by: Mark Munson

DSCR floor rates are at 7% with some lenders. I know this isn't a DSCR loan she is outlining, but she would get the same rate of 7.625% with a buy down through some channels we utlize. The buy down would be more expensive then she outlined though.

Hi @Ken Seveur

       How fast do you need to close by?

Hi @Maddy Lakshmanan

Make sure your current lender on the bridge will finance assignment fees from wholesalers, many will not or they have caps. I run a brokerage in Central FL and I'm also very well connected with wholesalers across the state, it will be hard to find a deal that just has $75k in equity sitting there. You will most certainly need to do some rehab. Keep in mind the following: To pull the maximum cash-out during a refinance, you'll have to own the property a minimum of 6 months. That means you need your bridge loan to be 12 months, otherwise you'll have to extend a 6-month term. Secondly, the max LTV on a cash-out is 75%, so make sure that when you refinance the 75% gets you all or most of your money back, if BRRRR is your strategy. Lastly, when you are running your #'s for cash-flow in the long-term loan, I'd use a rate of 8.5% to mitigate against the FED rate hikes to come. Also, make sure you are taking into account the insurance, taxes, and HOA dues. Feel free to reach out, I'd be happy to answer anything further for you if needed. Best of luck!

Hi @Diana Martinez

     I'd be happy to connect and give you any insight that I can. You need to start networking immediately, that is the fastest and easiest step to get started. Look into joining any local Real Estate Investors Associations (REIAs) in your market, there you will find resources and like-minded people that can help you. You will need a good contractor(s), a good network or agent for finding off-market deals, multiple capital channels (either a good broker or many lenders, one lender isn't enough), and a good insurance agent. 

I would also encourage you to map out exactly what you want out of real estate. Always start with the end in mind, then work your way backwards from there. I always ask my clients what their one year, 3 year, 5 year plan is; then we build a systemize to get there, but always by working our way backwards. Feel free to reach out if you need any advice, I'd be happy to help. Best of luck!

Hi @Michael Coco

     I'd be happy to give you some feedback on JVing or anything else as you get started. Going to REIAs is a good start. See if they have a new investor sub-group and go from there. Network as much as possible at this stage. I work with new investors all over the country and frequently speak in front of groups of new investors, so I can't stress enough about networking. As far as partnerships go, just make sure you know the logistics of the divorce before you get married. Feel free to reach out and best of luck!

Hi @Bert Chen

      I'd be happy to see if I can help! At the very least, feel free to reach out and run your scenario by me,I'm sure I can assist or point you in the right direction. 

Hi @JJ Lunsford

     Use a website like InvestorLift and reach out to dispo managers directly. If you just get on a list, you won'tsee the best deals as those don't make it past the clients that have good relationships with the dispo agent. They get first shot at the best stuff, in my experience. 

Hi @Rosie Small

Some DSCR lenders are okay with STRs too, so it likely won't be a problem if the long-term rent already meets the DSCR requirement. If it is an issue, I can point you in the direction of DSCR lenders that are fine with this set up.

Hi @Alazar Wubet

     I would also have a good insurance agent in place, as you'll need insurance if you are using financing. I would start vetting contractors too, as you want as many as you can when you get started. I would start attending any local Real Estate Investors Association meetings in your metro, as you'll find most of what you need there. You can use other websites to source off-market deals too, as there are plenty that aggregate wholesale properties. Feel free to reach out, I'd be happy to see how I can help with financing or any other aspect of what you are looking for. Best of luck!

Hi @Michael Rendon

On the next purchase, you may have to use a DSCR loan. Your DTI doesn't play a factor in DSCR loans and there are loans specifically for STRs too. Feel free to message me if you need any advice on how to structure those and recommendations.