All Forum Posts by: Nick Belsky

@Ricardo Diaz

Define what you mean by refinancing "my home" into an llc.  Do you mean your personal home that you currently reside in? or do you mean an investment home that you currently own?  This makes a big difference.

If it is already an investment property, then there really should be no difficulty unless you are omitting critical info from us. If it is your personal home, there are a few lenders who will allow vesting in an entity and be owner occupied, but that won't work with DSCR (Owner Occupied is strictly forbidden on DSCR loans). I am seeing more an more folks wanting to vest their primary homes in an entity then rent from themselves to write off the costs. If that is the goal, you really need to speak with your CPA before doing anything. While this is possible, there are many complications to setting things up correctly.

Cheers!

@Scott Bowen

I love how diversified the lending options are! I have to agree with most, a hard 5% 5yr PPP is something I'd rarely try to sell to a client, but on a $75,000 loan, that has very minimal impact if you were to sell/refi before the period ended. On the other side of the coin, a 0.50% difference in interest rate is also negligible on a loan that small... Most experience investors for long term holds don't hang up on rates so much as other loan features that have far more impact. You can easily offset a slightly higher interest rate with a small rent increase or hunt for cheaper insurance. You can't control a fixed rate not that is in place or taxes. You do have control over other factors that go into your NOI.

For the initial questions, there are some lenders who allow vesting either way, some have a pricing hit, some don't. IF you are interested in strictly lowest rate at 55 LTV with a $75,000 loan amount you may be able to hit floor rates under 6%, but many also give rate hits for lower loan amounts and limit buy down option to no more than 2pts... There are an endless variety of how different lenders price things. I haven't seen a difference of 0.75% for entity vs individual, though, that seems high. Generally speaking, yes, lenders with entity only vesting will have better pricing. They do this to attract certain types of borrowers. It's intentional.

Shoot, if you want to pay 3.5pts to the lender, we can price this down to 5.86%...

Cheers!

@Taissa Victoria Jones

Not enough margin for most lenders.  Smaller deals tend to be far more work and take more time than the average or larger ones.  It's simply a business model for most lenders, too little reward for too much time and effort.  Very few will do loans so small and charge far more than they normally would.  E.g. the few I know who will go lower charge upwards of $3,000 for UW Fees or more.

Cheers!

@Paige Kovari

Welcome to the Community!  I am a broker and based in central Florida, but we do loans all over the US.  We specialize in investment and commercial property loans so if you or your clients are ever looking for options, give us a shout.  We love to talk shop too, so feel free to reach out directly or to the community.  We are all here to help learn or grow your business any way we can.

Cheers!

Again, fascinating how we have nearly polar opposite experiences with some of the same lenders and opposing views on resources.  Not to say either of us is in the right or wrong, but the contrast is interesting to say the least.  Carry on!

I find this as fascinating.   Many of the lender's you've listed as not sharing guidelines have been more than forthcoming with guidelines for me.   Personally, I avoid wholesale lenders as nearly every scenario requires an exception, they over condition more than agency lenders, are slow as hell to UW and get docs out, don't understand investors,  etc... I could go on and on.  

I've "fired" many a lender for being overly ridiculous with conditions, difficult to work with, and a few for not honoring broker protection agreements.  We strive to provide our clients with the best loan experience as possible.  That is hard to do if you don't have a solid rolodex of lenders who can deliver just that.   With that said, not one lender out there is the best for for every scenario.   Knowing how your lenders UW is key to placing your clients in the right place. 

Many of the lenders on the "broker friendly" list provided earlier are black booked for me... along with a slew of Realtors and title attorneys or title companies who are not capable of delivering a consistent client experience.

I should also note that both Kiavi and Easy Street (among many others I work with) notified me immediately if one of my clients attempted to reach out to the retail side.   I was given the option to let it go, shut it down entirely,  or reconnect with the client to discuss steps.  Thankfully,  this has only happened a handful of times over the years where a client tried to circumvent me.  Only once did a lender close a loan with one of my clients without me and once it was caught,  they cut me a check... I didn't even have to ask.

@Don Konipol

Sounds like you need a better broker pool.  I hear stories from lenders all the time about crappy brokers doing this from my capital resources.  Unfortunately, these are lots that give us brokers a bad name.  

From time to time, I will put out a mass email to my resources asking if a certain piece of a scenario are able to be overcome.  If anyone thinks they can work with it, then I send all pertinent details individually.  We never send mass emails out with all the info for a deal, that's just lazy... we target certain lenders who we know or feel can work with the scenario and do it well.

Cheers!

Wait, you mean the best rates aren't from the best lenders?!  No way...

@Anthony Crecco

Plenty of options out there.  The large issue I see clients run into is the mix of residential use versus commercial.  What percentage of the total square footage is residential? commercial?  Next, what is the commercial use exactly?  Office, Restaurant, Retail, etc...? Then, we'd look at rent rolls and T-12 to see how its been performing.  Is the residential long term leases or short term?  

Are you working with a mortgage broker?  We have all kinds of resources to help you get this figured out or at least point out where the pit falls are.

Cheers!

@Kristi Miller

Since you plan to do renovations and the items you've noted are the concerns, perhaps seeking a builder's risk policy for now until you can complete the work to bring it up to par for a standard commercial policy?  You'd need to provide the carrier with a scope of work and be sure you address the issues they've pointed out. Yes, it will cost more, but it is a means to an end...

I am in Florida.  Welcome to the club.  Lol.

Cheers!