All Forum Posts by: George Despotopoulos

@Travis Bronson

How did this go? Did you close in cash? 

You can always seek to do a delayed purchase financing after closing in cash. A lender would be able to give you funds/lend against the purchase price and then put the rehab funds in escrow.

@Mike B. - something like this would be a perfect scenario for a short-term bridge loan cash-out. It makes life easier that you're looking to only cash-out about ~50% LTV. For this size loan amount, should be do-able to close in a week. If this problem should ever arise in the future feel free to reach out/pm. Happy to provide any additional information to help!

From the perspective of a non-bank lender (where your personal income and DTI do not come into play):

Depending on the property's DSCR, you'd likely be able to pull out $143,500 (70% LTV). Not sure what you would net, but typically closing costs (w/ a non-bank lender) may be around 3.5% on a deal like this, which leaves you with ~$138,000.

Rate would really depend on a variety of factors. Happy to provide more info specific to you/your property, feel free to pm me. 

@Olivia Vanover - Hey Olivia! Given that you have experience, depending on your FICO score, you would definitely be a great candidate for hard money or bridge loan here. 

Hard money/bridge lenders qualify you based on your experience/FICO. They also look at the property's value.  Given that you have no loans against the property(ies) helps things as you'll cash-out much more. 

Hard money/bridge lenders do not look at your personal income nor do they have a personal DTI requirement. You'll likely receive anywhere between 60% - 70% of the property's appraised value. The rate will likely be about 9.50% - 11.5% (generally) and you'll pay (at closing!) 2.5% - 3.5% of the loan amount as an origination fee (the fee the lender charges to take a loan from them). Each month you'll make a loan payment of interest only. You pay back the principal in a balloon payment at the end of the loan's term.

Pm if you'd like more info. 

@Gerald Renoe when did you purchase the property and what's the current value? 

Everyone is different and you have to cater to your audience. There's no correct answer. If it's a private individual that you're pitching to, I'm certain they will want to see more and something different than a hard money lender or private lending company. 

If you would like to wow him with your knowledge, it's your first deal and his fist deal with you, then I think putting more time into this would be preferred. I would focus more on the analysis/numbers than the aesthetic. Something simple and easy to read should be fine. 

When you're dealing with actual hard money lenders, private lenders, non-bank lenders, and you're submitting them a deal, usually all they want to know is the basics: purchase price, rehab cost, the ARV/exit strategy, etc.

Andrew, less than 6 months is hard to find. That's industry standard (6-12 month seasoning). 

@Dane Hamilton - I agree with David. It's nice to have a local bank that you can walk into and have human contact and that may help you but it can only take you so far as banks are tied to regulations/underwriting guidelines. 

Definitely doing a search for lenders that lend in the Orlando area would better serve you. You can always compare with what you're getting from local banks. It's best to have more options when investing. 

@Dan Travieso - 

You may be able to obtain financing from non-bank lenders (or asset-based lenders like Bob Green mentioned above). Your rate will be higher. Typically it is anywhere between 1% - 2% higher. The benefit though is that the loan is amortized over 30 years and you can get a fixed rate or adjustable rate (cheaper in rate) product. There are other benefits to mitigate the paying a higher rate, like ease/certainty of close (varies with each lender of course), you can close in an LLC, less stringent requirements, closing time is usually significantly reduce in comparison with banks.

@Chris Grizzaffi - happy you found a solution. There are, non-bank, investment property lenders that will lend to you based on the property's income (long-term rental loan) or your experience for fix & flip / rehabs. Rates are higher than conventional but there are perks, like the fact that they don't require proof of income/DTI, lend to LLCs, and close quicker.