All Forum Posts by: Patrick Roberts

Yes. There are a few technicalities, but this is common. 

 The owner's policy would have protected you against any claims that arose while you owned the property that caused a loss for a covered reason - similar to homeowner's insurance. If the issue that causes a loss doesnt arise until after you make the loan, then I doubt the original owner's policy would continue to cover you (but that is a question for a title expert).

Probably Title. I'm not familiar with Texas specifics, but the states I lend in are attorney states. An RE law firm handles the closing and the title work/commitment and policy issuance. 

In something like this, your attorney who represents your interests would prepare your loan docs, closing instructions and review title work and the commitment/exceptions. You typically dont want the agent of the title insurer doing that part.

Get a lender's title policy. Whether a buyer gets an owner's policy is up to them. The lender's policy will protect your interests as the lender in the collateral. The borrower's owner's policy will do nothing for you.

Im not sure where in LA you are, but there are meetups in Nola and Baton Rouge. Red Stick REI meets on the first Tuesday of every month at Red Stick Social on Government St. I believe Lafayette has a meetup as well, but could be wrong about that.

Way too tight. You'll have $4k minimum in closing costs on the hard money loan, and probably another $5k-7k or so in the DSCR refi. If anything goes wrong - an unforeseen repair (like an hvac or roof), a couple extra months on the timeline, the appraisal comes in short - and you'll be stuck if you dont have reserves to cover the difference (or possibly even unable to refi at all).

Also, I'm skeptical that a $5k cosmetic rehab is going to move the needle much on a duplex in EBR priced under $200k.

Lastly, I dont know of any lenders going over 90% LTV on a purchase on a hard money loan.

There is a whole lot that can go wrong on this deal, but if everything goes correctly, you really dont stand to gain much over the deal as-is. 

Get a financing plan together before going under contract or buying. I cant tell you how many times Ive had people come to me needing a certain loan program/product only to find out that the way they set their deal up puts the loan out of reach. 

Pick 2-3 lenders that you think may be a good fit and discuss options with them to see who will work best for you. Availability, skill, competence, product, rate/pricing all matter - dont just pick the person with the lowest rate or the lowest downpayment. Quality matters as much as cost.

 Any chance you know Donnie and Shannon at Core Fitness in Myrtle?

 This will depend on the loan product and the circumstances of your situation. This may or may not have any impact your interest rate. Highly variable. 

Interest rate is highly variable and is based on downpayment, credit score, loan amount, loan type (FHA, Conv, Nonqm, etc), loan purchase (refi vs purchase), property type, property use (primary vs investment), the list goes on.

7.25% is very normal, both historically and with where the market is at right now. If you're looking at stuff on bank rate or some search engine, just know that those quotes usually entail 1% origination, 1-2 points in a buydown, and 20% down. For example, if youre buying a primary with 5% down and no points and low fees, your rate will be higher than the best available shown on those search engines.