All Forum Posts by: Neela David
Neela David has started 4 posts and replied 8 times.
Post: Looking for DSCR Lender for $115K Loan – 20% Down
- Posts 8
- Votes 6
Hi everyone,
I'm looking for a DSCR lender that can help with a $115,000 loan amount. I’m putting 20% down, and the property is an investment rental.
Most lenders I’ve spoken to have higher minimum loan amounts ($100K+), so I’m hoping someone here has experience with a lender that works with smaller balances in this range.
Any recommendations or broker referrals would be appreciated!
Thanks in advance 🙏
Post: Landlord Insurance Woes in Cleveland - Need Advice!
- Posts 8
- Votes 6
Quote from @Owen Rosen:
Quote from @Neela David:
Hey BP Community,
Hoping to tap into the collective wisdom here. I'm closing on a property in Cleveland that I plan to rent out. However, I've hit a snag with securing landlord insurance.
So far, I've received a few responses declining coverage, citing:
- Higher crime rate in the area
- The property is older
- The age of the roof
I'm a bit stuck on how to proceed. Has anyone else experienced similar challenges in Cleveland or other areas?
My questions for the community:
- Are there specific insurance companies you've found that are more willing to work with older properties or properties in areas with perceived higher crime? (Bonus points if you have experience in the Cleveland market!)
- For those who've dealt with older roofs, what were your options for insurance? Did you have to replace it immediately?
- Any general tips or strategies for finding landlord insurance when facing these types of hurdles?
- Should I be looking at specific types of policies or riders?
Any insights or recommendations would be greatly appreciated! I'm eager to rent out this property, but I want to make sure I have the right insurance in place.
Thanks in advance for your help!
1. Work with a knowledgeable and experienced independent agent
2. Be very honest and transparent about the property characteristics
3. Ask questions! If you don't like the answers, move on.
How old is the property? Any updates? How old is the roof?
Hay property Built in 1905, recently updated a few things like the electric meter and panel, and some plumbing. I think the roof is 15-20 years old. Planning to replace it soon.
Post: Landlord Insurance Woes in Cleveland - Need Advice!
- Posts 8
- Votes 6
Hey BP Community,
Hoping to tap into the collective wisdom here. I'm closing on a property in Cleveland that I plan to rent out. However, I've hit a snag with securing landlord insurance.
So far, I've received a few responses declining coverage, citing:
- Higher crime rate in the area
- The property is older
- The age of the roof
I'm a bit stuck on how to proceed. Has anyone else experienced similar challenges in Cleveland or other areas?
My questions for the community:
- Are there specific insurance companies you've found that are more willing to work with older properties or properties in areas with perceived higher crime? (Bonus points if you have experience in the Cleveland market!)
- For those who've dealt with older roofs, what were your options for insurance? Did you have to replace it immediately?
- Any general tips or strategies for finding landlord insurance when facing these types of hurdles?
- Should I be looking at specific types of policies or riders?
Any insights or recommendations would be greatly appreciated! I'm eager to rent out this property, but I want to make sure I have the right insurance in place.
Thanks in advance for your help!
Quote from @Jason Zundel:
There are quite a few different options out there, but the two that seem to have the best reviews and are fully managed by you are Avail and Transunion Smartmove. Please note, if you are handling it fully yourself, then you are obtaining the confidential information of the potential tenants, and need to have the policies and procedures in place to properly protect such information. At minimum a privacy policy and the specific usages, maintenance, and/or destruction of the information should be available in the even the tenant asks for such.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Thank you sir.
I need to run a credit report for a new tenant who will be moving in with the current tenant. The current tenant has requested that his brother be added to the lease. I already have all the necessary information from the application, and he has paid me in cash to cover the report fee.
Now I’m looking for a way to run the credit report myself. Most platforms require the applicant to submit the application online and make the payment directly, but I’d prefer not to do it that way. I don’t want him to run the report on his own or fill anything out online — I want to handle the entire process myself.
Where can I run the credit report under these conditions?
Post: Does this closesing cost make sense? What should I expect?
- Posts 8
- Votes 6
Quote from @Clayton Silva:
Quote from @Andrew Zamboroski:
Quote from @Neela David:
I'm working with one of the lenders I used to work with. He processed this loan as a Conventional but this needs to be on a DSCR loan. Does anyone expense this with United Wholesale Mortgage? And does this closing cost make sense as well? He is running my soft credit for the loan guarantee and it will be on LLC. Does this seem right?
Cheers!
here is the second page.
Post: Does this closesing cost make sense? What should I expect?
- Posts 8
- Votes 6
Quote from @Clayton Silva:
Yes it does. There is no box in Loan Estimates for NonQM loans (DSCR is a Non Qualified Mortgage...meaning it does not get sold to Fannie or Freddie). As such, most DSCR loan estimates go out as "conventional" in the box you highlighted. Nothing out of the ordinary there.
Couple notes in case your lender did not explain it:
1) The owners of the LLC are still personally guaranteeing the loan contrary to popular belief. Despite the LLC technically being the note holder, there is still a personal guarantee.
2) DSCR loans CAN report to credit. While they may not initially, these loans get packaged up and sold to different hedge funds, servicers, insurance companies etc. When they do get sold/transferred, the new servicer may not fully read through the agreement and may report the loan to your personal credit.
3) Regardless of whether it reports to credit or not, it technically will impact DTI once reported on Schedule E for tax returns. Might be able to make the case that if it is not on credit and title is in LLC name you can omit it from DTI calc, but that is going to come down to specific lender guidelines and underwriter a lot of the time in regards to how they interpret that.
Hope this helps!
Thank you, sir, This makes more sense for now.
Post: Does this closesing cost make sense? What should I expect?
- Posts 8
- Votes 6
I'm working with one of the lenders I used to work with. He processed this loan as a Conventional but this needs to be on a DSCR loan. Does anyone expense this with United Wholesale Mortgage? And does this closing cost make sense as well? He is running my soft credit for the loan guarantee and it will be on LLC. Does this seem right?