All Forum Posts by: Nick Belsky

Hey @Marc Anthony Maciel!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

@Jared Polk

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

@Lucy Ahl

I am not taking sides here, but it sounds like there are quite a few things amiss from both parties.  The lender clearly didn't communicate with you or set proper expectations, which is why it seems the expectations you have are inaccurate.

Most lenders will NOT allow you to order your own appraisal/BPO. That has become nearly an industry standard in the lending space. When doing a fix and flip loan, the appraisal will determine the current as is value as well as the ARV. They do this by the Scope of Work with Budget being provided to them. Some lenders have internal teams that do these valuations and use a 3rd party to collect the data. Whereas some outsource all pieces to a 3rd party. Nothing about this part of what the lender said sounds off.

Communication and setting expectations are key to any smooth financial transaction.  The lender rep or broker you are working with should be able to walk you through each step so you have a firm understanding of what has to happen in order to get your file to closing.  Frankly, if you are proceeding with a transaction and you are NOT comfortable, do not proceed.  I've run into some issues where clients get a little anxious over a valuation that came in low or a condition comes up that is fairly minor.  Talking through these things is what helps keep everyone calm, cool, and collected.  If the lender originally did not believe they needed an appraisal, then most likely, something changed due to underwriting and an appraisal became necessary.  A variety of things could have caused this.

That said, what you've described above is not so untypical in terms of the steps of the process for a fix and flip loan.  Obviously, the communication and expectations could have been far better.

Cheers!

@Joseph Leibovitch

You just missed the window...

Just before the FED provided their first rate cut, DSCR loans were down to nearly under 6% with 1 year PPP at par pricing. Today, they are floating between 7.4-7.75%, depending on factors.

Your best bet is to work with a broker who watches these things daily.  Once something meets your criteria, they can notify you and jump on the program to get it closed before things move around again.

Cheers!

85LTV ask on a LTR rental is a tough ask, when adding an STR factor, nearly every lender will reduce max leverage by 5%. The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. I don't see an exact location in the OP, but if this is even remotely considered rural, you are adding another LTV reduction. Now you are saying you have no experience owning/operating an STR, that's another hit. Wrapping 3 properties into one blanket loan shouldn't be a problem, save these are sitting on any sizeable acreage.

You might get lucky and find a unicorn local bank or credit union that would consider that kind of leverage, but I would say overall, those terms are very unrealistic.

Cheers!

Hello @Daniel Vo!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

Hey @Urvesh Patel!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

Hey @Dillon Clark!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

I wouldn't say there are any cons to it.  Some don't like the idea of a 2nd position lien that is very small and very high on interest rate.  The blended rate between the two loans still comes out to be what is quoted.  Sometimes I have to show clients the math for them to get comfortable with it.  Recently, management changed it so both loans can be made with one payment versus two separate transactions.  Many clients liked that change.

Cheers!