All Forum Posts by: Mark Munson

I agree with this. Also, I've issued 1000s of POFs and hardly anyone calls to verify them. A HML is going to require you to send them bank statements (typically) to issue a POF, and potentially pull your credit. I won't issue POFs to wholesalers for the sake of it, as it takes time away from our staff on loans that don't generate us money.

Hi @Kenneth B.

From what you have stated above, I'd probably choose one of two different paths. Option A would be to sell it and use the funds to buy an asset that is closer to you and more manageable. Just be cognizant of any tax implications of doing that. Option B would be to do a cash-out refinance where the lender is also supplying the rehab money. The reason you'd do this is because the cash-out proceeds on the As-Is value will cover the costs of financing and closing, and give you the money you need to make the monthly payments; all the while also supplying the rehab money. Once rehabbed, you can choose to sell it (likely making more money than Option A due to the property being in a superior condition) or refinance it into a long-term loan and stick a renter in there. Feel free to message me if you need more advice, happy to walk you through your options, as I know getting started in REI can be daunting at times.

Hi @Wander Gomera

    I'd be happy to hop on a call and see if I can help, feel free to message me.  

I would talk with your Loan Officer, but it sounds like it still would be a second home if that is your primary residence and you are on the deed. I focus on investment loans (hard money/investment properties), so I don't want to misspeak. I'm sure others here can weigh in. 

Hi @Sean David Gibson

      Just to clarify, you are looking to buy turn-key properties? I'm in Orlando, but more context of what you are seeking would be helpful. 

Hi @Srividya R.

     There are plenty of lenders out there that can do this, at least with the information you stated thus far. It would ultimately depend on what types of assets these are and some other factors of course. I'd expect 20-25% down. I would ask the lender about their rate lock policy, you'll want one that does 45 days. I'd also ask if they allow for "partial release clauses" and what the release costs are. There are a number of other things to consider, but those standout. Feel free to message me if you need further advice, I'm in Central FL as well. 

Hi @Parthenia Holly

If you can qualify for a conventional loan, that would be your best option. In the event you do not, then a DSCR loan, from a lender that does STRs, would be your best option. You can get up to 80% of the purchase price, so you should have sufficient funds to qualify. Feel free to reach out if you need any advice, best of luck!

Hi @Dean Lupowitz

      I'd be happy to give you my feedback on the markets you mentioned, as we have experience in all of those. From a high-level, I'd be most interested in Birmingham, AL, as the Southeast is a bit more insulated than the others. Cleveland had 7-8 of the top ten zip codes with highest foreclosure rates in the US in 2022, according to Attom Data Solutions, so take that as you will. Feel free to message me and good luck!

Hi @Christopher Bawiec

     I'm in Orlando as well, I'd be happy to connect you to a few solid wholesalers here that know what they are doing and get deals consistently. Don't be discouraged by anyone's comments, it is possible and a numbers game, so you are on the right track. Feel free to reach out, I'd be happy to give you any advice I can. 

That's correct, but the vast majority of DSCR loans are too companies, so fairly easy to avoid that issue.