All Forum Posts by: Nathan Frost

Quote from @Nick Belsky:

@Nathan Frost

Many of your properties are falling below the $100k value threshold.  Many lenders will immediately pass on it due to that alone.  Cash flows are solid on all save one, but still good enough.  The value is the largest hurdle you are facing.

Pulling the cash out to payoff debts is sound and if you can free up enough cash to purchase another cash flowing property, you are all win-win.  Keep in mind, your tenants are paying interest and covering your loan payments not you.  

Cheers!

 Get it just the repairs / debts have added up.  If I clear the debts it opens the door for more lending and should equal out payments wise.  

Hi, I am looking for anyone that lends in Texas that could combine my 5 properties into one loan so that I could pull at least 110k equity out.  Trying to find a lender that does 80% of the market value or even 75% if can put it on a 30 year note.  Appraisals 550-560k.  Loan totals I owe = $296,000.  Please let me know.  Don't want high fees or tons of closing costs.  Maybe could roll closing costs into the loan.  Goal is to pay off debt and pull some cash out for another rental.  

Quote from @Devin Peterson:

Quote from @Nathan Frost:

Hi all, need some advice.  I am looking at doing a cash out refinance / portfolio loan for 25 years at 7.5% interest on 5 of rental properties.  Be nice to get 30 years if possible but no one local does that.  My payments total would go up $400-500.  However, it would clear all my debt and possibly allow me to purchase another rental property to add to the portfolio.  I would be eliminating bad debt and high interest credit cards that I had to use to do some repairs.  Yes, my interest rates would go from 5.25 to 7.5 or 8 but I would be eliminating debt payments and possibly adding a 12th rental property?  Is it wise to do this and be debt free even though my total payments on those 5 properties will go up $500?  I feel like the answer is yes, especially if I can buy another rental property to add to the portfolio.  Thoughts?  Smart to do?  Is it a no brainer?

Compare apples at the net bottom line number. I would say that there are some wholesale DSCR lenders out there that can get close to these terms. If the qualifying criteria and equity are there, you can roll in your closing costs. If you do not care about a 5 or 6 yr PPP, you can achieve a rate in the 7's

Juat sent email would love to see the options / quote?

Quote from @Renee Adkins:

Quote from @Nathan Frost:

Any lender able to combine 5 properties into one loan with a cash out at 80%? Looking for a lower payment compared to the current 5 all added up together and to pull 105k equity.  Two properties are not at 100k appraisal FYI.  

Andrew Deyo at Guarantee Rate can do that for you. His number is (719) 725-1024. I’ve been working with him for about 4 years now. 

He have an email?

Quote from @Erik Estrada:

Quote from @Nathan Frost:

Quote from @Robin Simon:

Always try to run the numbers side by side with the two scenarios (as is, vs. the cash-out refi + new property) and look at the bottom line of each - typically the best way to do it.

Also - any reason why you are committed to someone "local"? There are many 30-year options for this with nationwide or even Texas regional lenders

What your interest rate on 30 years?  Tons of fees?  I sent you email to get a quote.  30 years doesnt make sense if 8k in fees.  Take you 4 to 5 years to break even even if saving 200 a month on payment for the 30 year note.

 Hey Nathan, 

Most DSCR lenders will be able to refinance you with a 30 Year fixed DSCR loan as long as the rental income covers the mortgage payment. If you have an excellent credit score, 740+, have a DSCR ratio of 1.25, and can show reserves, you may very easily achieve a rate in the 7s.

What is your ultimate goal for this loan? If you plan to keep this loan for the full length of the term and don't plan on refinancing again, it may make sense to get a 30 year fixed note. Fees may also be financed depending on the LTV

 Goal is long term and to pay off some bad debt.  I plan to keep all these homes for at least 20-30 years or longer.

Any lender able to combine 5 properties into one loan with a cash out at 80%? Looking for a lower payment compared to the current 5 all added up together and to pull 105k equity.  Two properties are not at 100k appraisal FYI.  

Quote from @Robin Simon:

Always try to run the numbers side by side with the two scenarios (as is, vs. the cash-out refi + new property) and look at the bottom line of each - typically the best way to do it.

Also - any reason why you are committed to someone "local"? There are many 30-year options for this with nationwide or even Texas regional lenders

What your interest rate on 30 years?  Tons of fees?  I sent you email to get a quote.  30 years doesnt make sense if 8k in fees.  Take you 4 to 5 years to break even even if saving 200 a month on payment for the 30 year note.

Hi all, need some advice.  I am looking at doing a cash out refinance / portfolio loan for 25 years at 7.5% interest on 5 of rental properties.  Be nice to get 30 years if possible but no one local does that.  My payments total would go up $400-500.  However, it would clear all my debt and possibly allow me to purchase another rental property to add to the portfolio.  I would be eliminating bad debt and high interest credit cards that I had to use to do some repairs.  Yes, my interest rates would go from 5.25 to 7.5 or 8 but I would be eliminating debt payments and possibly adding a 12th rental property?  Is it wise to do this and be debt free even though my total payments on those 5 properties will go up $500?  I feel like the answer is yes, especially if I can buy another rental property to add to the portfolio.  Thoughts?  Smart to do?  Is it a no brainer?

Quote from @Kerry Baird:

You have the gist of it.  I envision pulling out funds to remodel or to buy another rental and using all rents to pay it off faster.  To me, it can be an emergency fund to handle that roof replacement, water heater that failed or HVAC that went out.  Or use it to remodel or do upgrades that improve the value of a property.  Use combined rents to pay off quickly.

 Awesome.  Fingers crossed that I can close on mine next week.  This could really help me long term.  If I ever move out of my primary I could have a 170k line of credit that could do wonders for me as a rental and for any expenses / upgrades.

Hi, I am about to close on an AIO HELOC. Anyone have one and let me know the way to ultimately take advantage of it? Would it be smart to put all my rents and paycheck into the AIO to pay down the loan as fast as possible?

Currently, I have my personal bank and LLC bank (rentals). However, it seems smart to put all my rents and paycheck in there so the balance goes down and I pay less interest. Than the mortgages and bills can be pulled from the AIO as need be. Any advice or tips on how to take advantage of the AIO?