All Forum Posts by: George Despotopoulos

@Bin Liu

What you were being quoted that didn't make sense?

@Blaze Crook  like others have said, the lender should order this for you. It would be a waste for you to order one, the lender will want their own. 

Hey @Christian Nachtrieb! The borrower would be the entity. The lender would require a guarantor. Usually, all members of a the borrowing LLC with ownership >50% must sign the personal guarantee; basically personal guaranty is required for each owner of 50% of more. Some lenders do this if you own 20-25% or more. Also, most likely, the lowest of all borrowers' (the LLC's) representative credit scores will be used.

@Michael High -- yes, typically for a first time flipper (or first time buy & hold purchaser) most lenders will charge higher rates. I'm not sure if the points go up for first time investors, it may, that depends on the lender.

If it's your first deal, the best way to get more favorable terms is by not borrowing the full amount that is available to you. So if they go up to 80% LTC maybe taking 70-75% reduces your costs. Another thing is, make sure you have a decently specific/descriptive scope of work and be conservative on your as-is value and the ARV, it will help you come across as more credible.

You have to read the regulations, and your state's statutes around requisite licensure, and apply it to your scenario/facts. That's really the only way to know (or consult an attorney). 

Hey @Kayla Ross, a few questions, that perhaps if answered can get you some referrals:

• Where are the properties you're looking to finance located? What's the area you invest in? 
• By rental houses, do you mean vacation/air-bnb type rentals or rental properties with month to month or longer term tenants?
• Generally, what are the purchase prices of the properties you're looking to buy at? 
• What are the property types? Single family, 2-4 unit, townhomes, condos, etc..

Depending on your FICO (and if you have any judgments/foreclosures/bankruptcies) you may have a decent amount of options. The only thing that may hold things up a little is that most lenders in the non-bank space will require a minimum loan amount of anywhere between $65K-$100K.

@Donnie N. - how long have you owned the 3 properties? Some lenders have seasoning requirements which range from 6 months to a year before you can do a full cash-out. 

Usually local/community banks like to work in markets they know. There are nationwide lenders. 

As for LOC v. Loan: it's your preference and needs. A lot of people who need access to cash to close fast on deals go with loc. Others who like to do more buy & holds go with conventional. And, you can get a few properties under one loan, it depends on the lender.

Non-traditional options will have terms that vary a good amount from BoA. Non-bank lenders usually go off of the property's income if it's for a rental property loan or the property's purchase price and ARV if it's a bridge or hard money loan. The issue I foresee is that most non-traditional options require the property to be non-owner occupied.

I can pm you a referral.

Daniel, there are many reputable non-bank lenders in the space to get this deal done for you. Like others have said, if it seems too good to be true then it usually is. I would shift the focus to finding local and national lenders. 

If it feels funny and you're questioning it that's usually a sign that you should not progress.

That seems to be pretty competitive today but like Andrew suggested, get terms from another lender or two.