All Forum Posts by: Marty Johnston
Marty Johnston has started 41 posts and replied 498 times.
Post: Buying 3 homes on a single parcel
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Niraj S.:
I've come across a property which has been on the market for over a year and now the seller is looking to relocate and wanting to sell ASAP. So as I was digging deeper, I came to found out there are 3 homes on the same parcel and they have to be sold as a package. How do I get funding in this kind of scenario as my guess is traditional lenders would not consider funding this deal? 1 home is owner occupied and the other 2 are vacant and owner is selling them AS IS. Seller is not open to owner financing so that option will not work in this case. My plan is to rent all 3 of them out.
Niraj,
Most lenders will simply consider this a 3-unit residential property and you should be ok! A few unknowns to navigate still but I've come across this a number of times and its usually not an issue. We'd also want to confirm zoning is appropriate. DM me if you'd like to chat more on this!
Post: Need raw land bridge financing
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
@Spencer Elliott can you provide some details on the deal? Purchase price, LTV required, terms of the takeout construction loan, etc. Someone to close that fast will need to be PML or low-leverage hard money lender in most cases. Otherwise if you qualify unsecured financing may be a good option for you as well. Funding in 1-2 weeks easily, no appraisal or up front costs, and no prepayment penalties or minimum interest so pay it off with the construction loan any time.
Post: Best heloc for purchase
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
@Daniel Murphy I've always found the best luck with local credit unions to offer the best terms on HELOCs. I have 2 currently, both with 2 different credit unions, and both were no-brainers on low (no) closing costs and lowest rates (still 2.99%-3.99% IO HELOC with 10-yr draw period and 15-yr term). Start there first for sure! Good luck!
Post: Looking for a Mobile Home Park Mortgage Broker
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @John Boutros:
Hi BP'ers,
My partner and I own mobile home parks. I want to see if the BP community has any recommendations for a great mortgage broker for mobile home parks. Appreciate any recommendations. Thank you!
-John
Hey John, happy to help as well! I'm a mortgage broker and have helped a number of investors secure financing for mobile home parks, both bridge or long-term financing options. I'll send you a DM to connect!
Post: First time investor looking for a hard money lender for a fix and flip. Suggestions?
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Kiyana Williams:
Hey! I’m a new investor and I have a deal for a fix flip but I keep getting denied funding because I don’t have experience. How can I get experience if no one will take a chance with my deal. Any recommendations would be greatly appreciated? Thanks!!!
Kiyana, I'd love to connect with you and discuss options! I work wit a lot of 1st time investors and have lenders who can help so long as the deals pencil out and other parameters are met for the project. Sending you a DM!
Post: Looking for DSCR Lender with specific terms
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Alex Bekeza:
@Marty Johnston Does that option allow you to clear that 1.20 DSCR hurdle in a market like PHX using rent by room rental rates instead of long term market rents when market rents are much lower?
I did confirm that with an exception, yes they could use boarder / room rental rates as opposed to 1007 market rents, so long as we had the 12-mos cancelled checks verifying income amount as well as executed leases.
In my exception request however, I was reminded of their exposure limit of $5M to any singular borrower/principal, so with the $8M total @Dan Nguyen we wouldn't be able to service all 20 unfortunately.
Post: Funding for my first investment property while being a entrepreneur
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Jae Jarmon:
I found a multi family four unit asking price is $224,900 and I had my realtor ask them if they would take $160,000 they said yes. Awesome right... One of the units is completely gutted they started a remodel and decided not to finish it. They have most of the materials in the unit already so I won't have to buy much. But this is actually the good part the issue is funding. I have tried to get funding and it is not as easy as all these podcast and youtube videos say it is especially for an entrepreneur. Why are there so many fake private money lending companies out here it's ridiculous honestly. When you are new people just want to take advantage of you and I do not like it. Any who my question is do anyone know any private lenders or hard money lenders or angel investors that would like to help a newbie get started? Thanks for listening
Jae, I'm local to you here in Milwaukee (Wauwatosa) and would love to connect! There are options here available to you. Sending you a DM
Post: Looking for Hard Money Lender Referrals
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Would love to help! Sending you a DM
Post: Are there lenders that will work with a 644 fico
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Johnny Scott:
Are there any or does anyone know of any hard money lenders who are willing to work with a 644 fico score? If anyone knows of any lenders I would prefer one that allows the loan to be converted to 30 year. Bigger pockets community help.
Johnny, there are lenders who offer DSCR loans down to 640 on a 30-yr! Rates aren't fun, especially in our current market, but they're certainly obtainable. Sending you a DM for more info.
Post: Looking for DSCR Lender with specific terms
- Lender
- Wauwatosa, WI
- Posts 566
- Votes 202
Quote from @Dan Nguyen:
Hello!
I have about 20 SFR properties I'm looking to refinance in Phoenix Metro with about $8 mil in debt and I'm looking to do individual DSCR loans for each property.
I'm looking for:
-Ideally 85% LTV (min 80%).
-10-year interest only followed by 20-30 year AM
-Lender must be able to work with individual room rental numbers instead of appraisal rental values.
I can provide lease agreements, proof of rent, canceled checks, etc...
If anyone knows of someone, please let me know!
Dan
One of my wholesale lenders offers what you're looking for up to an 85% LTV on a 40-yr Fully Fixed, but capped to 80% on the 40-yr IO/30-yr Hybrid. If the 40-yr fixed is of interest, it would all have to pass the full checklist here to qualify for 85% leverage, ALL of the following must be met:
1. Must be rate and term refi - cashout is capped to 80% LTV
2. DSCRs 1.20+ (can qualify DSCR based on IO payment)
3. Assumes 740+ credit score
4. Must be currently leased. Vacant properties can still qualify for financing using market rents per a 1007 rent schedule, but will be capped to 75% LTV
5. Min SF of 600 SF (SFH) and/or 400 SF /unit (2-4 Unit)
6. If appraisal determines a declining market, a 5% LTV hit is applicable
The 40-yr with 10-yr IO/30yr hybrid is available, as well as a straight 40-yr fixed (0.25% bump to the rate). 3-Mos ITIA reserves required.
If all these boxes are checked, shoot me a DM to discuss!