All Forum Posts by: George Despotopoulos

When you say he wanted the home for himself, does that mean he will occupy it or he's going to hold it as a rental?

You do not want to manipulate the appraisal, doesn't help anyone, but at the same time I do think you want someone who knows how to check/read the appraisal and catch anything that may seem off. Appraisers are people too, they  make mistakes.

@Pra Che I can see if I can help. Sent you a pm, feel free to respond there or contact me at the info in my signature.

The shorter term the loan the higher the rate. Are you capping it at 6 years because this is what fits your needs? If we're talking purely private lenders in the sense that you're seeking individuals to lend out their own money then the rates are going to a bit more unpredictable, it's up to that individual! But, with that said, what's 'fair' or in-line with the 'market' is a different story. It depends on what you're trying to accomplish as well: is it a flip, is it a rental? If it's a rental, what's the property's DSCR or property's DTI look like? Do you have any experience in flips or owning/operating rentals (like Lane above mentioned, this plays a role). I would think something in the 7.00% - 8.500% would be do-able if everything discussed looks good and your fico is 740+ and having multiple rental properties. I would expect to see it go up to 8.500% if you're going for only 20% down, the more money down the better the LTV and better rate.

That's a tough one, most non-bank (or specialty finance) lenders I know of require that the property be leased long-term (12 month lease) otherwise expect issues (a holdback of 6-12 months of PITI & HOA until you submit long-term lease(s))

You can go to commercial / asset-based / specialty lenders that will look at and qualify you based on the property's income (DSCR or DTI), not your personal income.

@Joshua Piazza gives us some more information on your deal:

Is it in Montana? What's the purchase price? How many units? How much are you looking to put down?

Daniel, what's the insurance company's website? 

Broker will find you the best rates but will also charge you points for their service. I would think it's best to exhaust conventional financing first. Take advantage of the cheapest $$ you can get while it's available.

This isn't legal advice, it's merely my opinion, and you should definitely consult counsel of your own. 

I have never seen a tenant sue a lender. I don't know a scenario where Q2 would actually happen but a lender usually has 1st position, unless delinquent taxes are at issue. Q3: If you're on the deed, you own the property, you're the party to be named. 

Again above is my opinion and not advisement. I think a consultation or at max 1-1.5 hours with an experienced RE atty will resolve any issues you have here.