All Forum Posts by: Minh Duong

@Jennifer Patton The reason why the lenders/underwriters don't count for your 2nd full-time income/job is because for secondary employment or income, they need a whole full 2 years history of consistent income with no gaps. If you do have some gaps or just recently got the secondary employment/income, then that's probably why the underwriters don't count that income. 

That says, there are a few options. First, let's try to increase your income by maximize the rental income for the other unit (as it's a Duplex). So you will have to do a 1007 Rental Appraisal to get that income calculated in. Second, try to ask your main employer to provide a letter stating the average hours you now work (which is 72 hours instead of traditional 40 hours/week). This way, the underwriter might be able to recalculate your income on the 72 hours work week basis instead of 40 hours. This might be able to boost your income to where it needs so that your DTI goes down to 36%. Let me know if that helps. And if you want my underwriter to look at your file that way, let me know, I will be available to help.

@Suhas T. Yeah, finding lenders for investment property construction can be tough since so many stick to owner-occupied deals. You're definitely not alone.

That said, you might have better luck with local or regional banks that have more flexibility, especially ones that do a lot of business lending. Also worth checking out some portfolio lenders or community development financial institutions (CDFIs) may be open to it, depending on the location and your track record. You're right to steer clear of hard money unless it's super short-term — the rates and fees usually kill the deal.

I also know a couple of portfolio lenders that can help, so let me know. 

In my experience with PMM, a general seasoning (or prepayment penalty period) will vary based on the interest rate (ROI) you charge for financing as a seller.
If you want a long prepayment penalty period, like 3-5 years, then the interest rate you charge them has to be lower to match or compete with other financing methods on the market. Based on my experience, that interest rate will be somewhere 7-9% depending on the borrowers' profile. 

If you want a short prepayment penalty period, like 1-3 years, then the interest rate going to be more (10-12%) so you can get the ROI you want. 

Now, if there's a balloon in place (let's say in 5 or 10 years), then your interest rate has to be lower since that's a benefit for you as a lender and a risk factor for the borrowers.

It's actually within the recent underwriter guidelines and procedures that require HOAs to complete more detailed questionnaires focused on structural safety and reserves, and unfortunately, when HOAs refuse to provide that information, it can stall or even kill a deal.

I have dealt with a few deals like this this year, and most of the time, talking and escalating this to the upper management in HOA helps since it doesn't change anything on the loan terms or cost extra (like hiring lawyers).

If that doesn't work, what I did and would recommend is to work with products that do limited review or non-warrantable condo loans, as they may have more flexible underwriting options or workarounds in situations like this. The caveats is that it might be a bit more expensive in either the interest rate or the cost to buy down rate. 

My company does do these limited review or non-warrantable condo loans, so feel free to DM me - happy to share!

@Mark M. For that property type in Ohio, I would highly recommend you to wait for another month since it's very close to the 6 months seasoning requirements. Because if you don't the pricings going to be very different. For example a 6 months seasoning requirement will give you a 6.5% rate whereas a refi without any seasoning requirement (or 3 months) will have at least an 8% because refi without the seasoning requirement is very rare and not sellable on the secondary market.

@Noyessie Hubert I can certainly help you close that in 5 days with 80% LTV and about 1-2 origination points depending on the deals detail. Let me know if that's something you're interested.

@Sam Shikiar I can certainly help you with that. My origination fee for properties in SD ranges from 1-2 points, with 90% LTV (so only 10% down payment) with 100% rehab covered. In some cases, we can go up to 100% LTV if there's a lot of sweat equity.

Again, like any hard money loans, it's case by case basis, but we're pretty lenient on the underwriting. Let me know if you want to hear an offer. My email is [email protected]. 

@Glenn N. I read my fair share of Loan Docs in the past for clients, and I can tell you that if you're transferring a property-backed loan from one LLC to another in Florida, you're essentially triggering a title transfer—which isn't just a quick internal shuffle.

You'll likely need to draft and record a quitclaim deed or warranty deed to move the title from LLC A to LLC B. This will need to be filed with your county recorder. You'll also need to check your loan agreement—most hard money loans have a "due-on-sale" clause, which means transferring ownership could technically trigger a default unless your lender approves it in writing.

I will recommend you to talk to your lender as the first step. If they're okay with it, you'll probably sign a new loan agreement or assumption agreement under the new LLC.

@Joe Grespin I'm a broker and I have connected a lot of private lenders to borrowers, and I can tell from a private lender perspective. If you're considering private money lending, you're not just chasing returns—you’re taking control.

A big advantage I can see is flexibility. You get to set your own terms—rate, LTV, term length—and move faster than traditional lenders, which makes you a valuable partner to real estate investors. That speed builds trust and repeat business.

You’re also backed by a tangible asset. Done right, private lending gives you a strong collateral position, especially when you stay conservative on loan-to-value. It’s not zero risk—but you’re not riding the stock market rollercoaster either.

The real win? Passive-style income with more control than a syndication or REIT. You're in the driver's seat, choosing who and what you fund.

Just make sure you vet your borrowers, document everything, and protect yourself legally. 

@Joseph Cacciapaglia Totally get where you're coming from—this is a space with a lot of potential but not many lenders are ready for it yet. Most banks and lenders don’t know how to handle DAOs because there’s no single person in control and no personal guarantor, which makes them nervous.

That said, there are some private and non-QM lenders starting to explore DAO-friendly lending, especially if the property is owned free and clear and you're only looking for 50% LTV. They may be open to using the property itself as collateral (like a DSCR or asset-based loan), without needing a personal guarantee—as long as they can understand how your DAO operates.

If your DAOs have clear operating agreements, wallet control, and some consistent governance structure, you might be able to find a lender willing to do a deal. It’s niche, but not impossible. I know a few lenders who are open to this models—happy to connect or explore a custom structure if you’re looking to scale.