All Forum Posts by: Mark Munson

Hi @Justin Brittingham

     I'd join the NCREIA, they have a chapter in Charlotte. It's a good place to connect with people wholesaling and other RE investors. I'm a member of one of the largest wholesale masterminds in the country and a member of the NCREIA, so feel free to reach out if you need advice. 

One thing I like to make note of in this market to people considering wholesaling, you should strongly consider reverse wholesaling. Build relationships with cash-buyers and find out exactly what they will buy, then hunt down the properties that fit their buy box. It is a far more efficient process and success in this industry is relationship based. Form relationships with your buyers, otherwise you'll be splitting assignment fees with other wholesalers to dispo your deals. Message me if you need any connections in the market or help getting started. Best of luck!

Hi @Sam Tright

     If you are asking if a HM lender will want you local to the market you are investing in, the answer is generally no in my experience. They may want a Letter of Explanation as to how you will be managing it (mostly for out-of-state rentals), but that is the extent in my experience. That's not to say that the one you are thinking of using doesn't have the requirement, but I've never run into that before and I operate a commercial mortgage brokerage. Feel free to reach out if you need any further advice and best of luck!

Hi @Matthew Stallings

I would start by joining the local REIAs in Atlanta. You'll be able to connect there with other flippers and probably other resources that can help you along the way. REIAs tend to be the easiest way to start networking with like-minded people. If you have the time, maybe even consider volunteering for the REIA in some way. Bring value as often as you can and you'll find you'll get value back ten-fold. I lived North of ATL for awhile, so I know the market well. Feel free to reach out if you need any advice and best of luck!

Hi @Steele Kruzel

    Welcome to BP! I'd look at joining as many local REIAs as you can, as those are going to be the best places to start networking locally and with like-minded people. The cost to join is usually a couple hundred dollars. I'd start connecting with some local wholesalers, I can recommend a few that I have worked with on the financing side. I know the area well, as my business partner and I have funded quite a bit of flip loans in and around Indy. Feel free to message me and I'm happy to point you in the right direction. Best of luck! 

Hi @Jeff Scholen

80% on a cash-out refinance is a bit difficult to source. You may have better luck with a traditional bank, as most hard money DSCR lenders will cap at 75% on a cash-out refinance. Keep in mind that you will most likely need to season it 6-months as well, meaning you will need to have owned it at least 6-months to get the maximum cash-out.

Hi @Todd Pemberton

      I'm in Central FL and can give you a few recommendations. I'm familiar with EquityMax as well. They are reputable and have been around a long time, but they aren't necessarily the cheapest and you won't get rehab money (in my experience); however, I'm not sure if you need that. Feel free to message me and I can give you some feedback. 

I wouldn't say all DSCR loans, just because I'm sure there are banks out there that may require a lease in place. However, I could name a ton that have the structure I mentioned. A 1007 is an appraisal rent schedule. They will determine the market rent by pulling rental comps, and the lender will use that figure to calculate the DSCR. If a property is unleased, this is likely going to be ordered. Also, unleased properties may have a .250% add on to the interest rate with some DSCR lenders.

Just to clarify, you don't need to have a renter in place for a DSCR loan. It doesn't have to be generating income at the time of closing, or even be leased. An appraiser would determine the rent via a 1007 and the lender would use that to calculate the DSCR.

Hi @Jordan Holt

To do a cash-out refinance into a DSCR loan and get the most back out (75% Loan to Value), you'd need to own it 6-months with most lenders. If you just want to pay off the previous HML, you would just be doing a rate and term refinance. Based on the figures you provided, your max loan amount would be $225k (assuming a $300k valuation), and that assumes the DSCR still works at that amount. To really be able to tell you the max loan amount, we'd need to know the taxes and insurance as well, also your estimated credit score. Feel free to reach out, I can walk you through the numbers and options.