All Forum Posts by: Marty Johnston

@Nicholas Covington Nicely put and couldn't agree more. The Mortgage Broker movement (Anthony Casa!) is strong and it's only those brokers who are unprofessional, inexperienced, or lacking in communication that put a damper on any deal. A good broker takes control of the deal for the borrower and makes things not only move efficiently, but work harder to ensure most common issues are avoided as much as possible in addition to: opening Title, coordinating insurance quotes for the borrower on lenders requirements, coordinating attorney's in involved, keeping the lender on their toes when their stacks get high etc.

Anyways just my $0.02! Best wishes to you Wesley and I wish you all the best on this deal!!

Vlad,

While we don't have any JV lenders for buy and holds, we do have a 100% JV Lender for Fix and Flips who is currently partnering in FL. Do you have a current deal in the works? Let me know your preferred email and I can send you more details - or you can email me at [email protected] and I'll respond in a timely manner.

Thank you very much!

Marty J

Jamie,

We work with many lenders for first time rehabbers. I'd be happy to get you some quotes on this deal. Can you send me an email to [email protected]? Otherwise feel free to give me a call at 920-285-8900.

Look forward to hearing from you! Have a great rest of your weekend.
Marty J

@Detrick Moore - Most lenders will fund both the Purchase & the rehab. This will vary between 75% of purchase and 100% of rehab (funded in draws) and 100% of Purchase and 100% of rehab, even rolling the lender fees into the loan. However dont let the 100% Financing fool you. Even most of those lenders who offer 100% of Purchase and 100% of rehab still have reserve requirements. Plus you will still need to have funds to cover the costs of: Appraisal, Broker Fee (if using one), Title Insurance & Property Insurance, + liquidity to start the rehab, and then receive draws from the lender as you complete the project (site visits would be done to confirm the work is being completed as expected before they will fund your draw). Even 100% JV Lenders still require you start the rehab yourself and will reimburse you in many scenarios. Much lower closing costs & liquidity requirements, but still need some. Average for first time rehabbers is 80% of purchase and 100% of rehab.

Anyways hope this helps!

MJ

@Krista Billiter - Is this your primary residence or a rental property? If it's your primary residence you'll be much more limited as you can't get a commercial loan on your primary. If it's a rental you can potential pursue either. Also if it is a rental and it's currently vacant, you'll be a little more limited on permanent financing options (15-30 Yr Terms). A few lenders out there will lend against vacant properties offering term loans by simply looking at what the market rents would be, but otherwise you'd have to look at a Short Term Bridge loan (12-24 mo Interest Only term) and refinance again at the end of the term once it's leased up.

Anyways, but Most HML's will also have an issue if it's your primary residence. You're best bet is usually to try a local Credit Union. Otherwise there are some residential lenders out there who will consider FICO in the high 500's (not sure where you sit) if it's because of Medical Bills specifically. We were able to approve certainly loans if their delinquencies were all Medical bill related when I was a Residential LO.

Hope this helps!

MJ

@Alan Howard - Other's nailed it, so I'll just echo. Commercial loans don't look to your W2 income like residential mortgages. They look to the rental income (or potential market rents if vacant) to evaluate the Debt Service Coverage Ratio. This will range from as little as 0.75 - 1.5 (on the other extreme) of the rental income. 1.00 being equivalent to what the property rents for (cover the PITI payments) and 1.5 DSCR meaning if the mortgage payment was $1,000/mo the rental income would have to equal $1,500 or better. There are many who sit around 1.0 - 1.2 DSCR.

Bottom line, there are many options out there! Might just mean going Commercial vs Residential.

Cheers!

MJ

@Michael Olson Yes sir! Keep in mind the GC Doc list and some of the lender specific apps etc will vary, but most traiditionally request similar items.

Enjoy!

Hip,

Can you provide the following for me?

Purchase Price:

Rehab amount:

ARV of Property:

# of deals completed in past 24 months:

# of deals completed in past 36 months:

# of Rentals (Properties + Units) that you own that are currently leased out:

Thanks Hip!

Marty J

Hey Matt,
We're a CRE Mortgage Broker out of Lansdale, PA. We see a ton of business in your lending territory and nationwide. Would love to connect and learn more about your programs! Can you send me an email with some more overview to [email protected]?

Thank you very much!

MJ

Cody,

Below is a copy of a Doc List for a lender we work with and they ask for the same items from a First Time investor as they would an experienced one (except perhaps HUD-1 statements to prove experience). Hope this helps!

LENDER DOCUMENTATION CHECKLIST:
*1. Loan Application + Track Record (Signature Required/Included in package)- Will send once we have fee agreement back
*2. If Purchase: 1 month complete bank statement proving down money and closing costs (September statement) - all pages

*3. Purchase and Sales Agreement- fully executed.
*3a. Copy of check for proof of and Earnest Money put down
*4. Contact info for individual that can provide interior access to subject property. (Need name, email and phone number)
*5. Rehab Budget- Needs to be on lenders form prior to closing (attached). But to get appraisal ordered you can send your rehab budget and a scope of work as well please that explains in detail what is being done to the house.

*6. Escrow/Title/Closing Company contact information (Need name, email and phone number)
*7. Insurance reps contact info. I will get declaration page from them - Replacement cost plus improvements. (Need name, email and phone number)
*8. Contractors contact info- I will get the docs we need from them. (Need name, email and phone number)

9. Photocopy of valid ID for all borrowers
10. Company EIN Document
11. Company Articles of Incorporation/Organization.
12. Company Bylaws/Operating Agreement (Fully Signed)
13. Company Certificate of Good Standing
14. Company W-9 (part of lenders application, please fill the W9 out under the entity name).
15. AML Document- will send later (anyone over 25% owner needs to fill out and sign the AML document)


CONTRACTOR DOCUMENT CHECKLIST (IF REHAB LOAN):
1. Copy of Contractor license
2. Liability Declaration Page (date in the top right corner cannot be more than 90 days old)
a. Commercial General Liability Insurance with minimum coverage of $1million OR
b. Personal Liability Policy with minimum coverage referencing subject property
3. If contractor has employees Declaration Page for Worker’s Compensation insurance OR
-If contractor does not have employees a letter of explanation, signed and dated by the contractor stating that he/she does not have any employees (Please make sure letter specifically states that you are exempt from workman’s comp insurance because you have no employees.)

4. Two previous projects from the GC – addresses are fine, if they have the SOW for those even better.