All Forum Posts by: Bob Green

Waylon,

Very good question. We take the rents and subtract 25% off the top, then divide that number into the PITI. The debt service required is 1.2 or greater.

Yes, escrows are required. Plus capital expenditures.

Yes - Agreed RE: yield maintenance.  This type of finance is for the buy/hold client.

Brian - We lend nationwide except for Alaska and Utah.

Hello Craig,

Rates are driven by loan to value and loan amount.  5 and 10 year fixed, rates can range from middle 5's to middle 6's, 30 year amortization, non-recourse.

As with most commercial loans at 5 years or greater term, there is a prepayment penalty, which is yield maintenance.  This loan structure is for buy/hold clients.

Hope this helps.  If you have any other question please feel free to ask.

Ben; 

In general, global debt service ratio's are calculated like this, but can vary depending on the bank.

1. Add your total income between both rental property and w2 income, and subtract out all of the expenses on the rental properties

2. Take this figure and subtract out 25% for living expenses, annual PITI for primary residence, charge accounts and car payments annualized, PITI for all rental properties, and the P&I payments for the properties are refinancing.

3. Take this figure and divide it into the figure in #1 above.  The global debt service should be 1.2 or greater or the bank will likely turn you down because of regulations.

Hope this helps.

Greetings All,

We offer rental property financing for residential investment properties nationwide - No tax return required or personal debt to income counted against you. Bank rates/terms.

We make “asset-based” loans, which means we evaluate the cash flow of your rental property rather than your personal debt to income ratio.

Our typical client owns 5 or more units, and has been turned down by the bank due to insufficient income shown on their tax returns. We make it simple to qualify and use a common sense approach to approving your loan. Personal debts do not count against you.

Currently we have a 5 unit minimum - $500,000 loan minimum, however this is going to change by end of year to 1 unit minimum with loan of $100-150K minimum.

The main difference's between us and a traditional bank.

1. We offer 10 year fixed rate/ 30 year amortizations. In general, banks only lend up to 5yr/20 amortizations

2. We offer non-recourse loans - Banks only recourse

3. We do not require tax returns and do not look at your personal debts. We only care about the cash flow of the property - With banking, there is something called global debt service ratio that can kill a deal very quickly because personal debts are counted against you.

4. We allow 90 day value seasoning from the day you close. This will allow you to cash out based on fair market value with out waiting 12 months, therefore leveraging the equity to buy more property sooner than later - Most banks will not allow you to leverage the equity until property is owned for 12 months

5. We do not care how many properties you own, we can finance as many as you would us like to.

6. Minimum FICO 660 - Most banks 700 and higher

7. Cash out for anything - Most banks want to know where the cash is going to be spent

8. Minimum Debt Service ratio 1.2% NO Global Debt Service Ratio. We only look at the asset- Traditional banking count personal debts against you

Hello All. I personally have been investing in real estate for over 10 years, and understand the challenges that residential real estate investors face every day. Whether it’s working to improve cash flow, convert loans to better terms and unlock equity from existing property, or even trying to fund new acquisitions, we are uniquely qualified to assist you.

 Have you been turned down by the bank due to:

1. Credit score under 700?

2. Property cash flow is good but personal debts are to high?

3. Do not show enough income on tax returns?

4. Own to many properties?

5. Etc., etc., etc.

We make “asset-based” loans, which means we evaluate the cash flow of your rental property rather than your personal debt to income ratio. - No tax returns required - Bank rates/terms

Our typical client owns 5 or more properties, and has been turned down by the bank due to insufficient income shown on their tax returns. We make it simple to qualify and use a common sense approach to approving your loan. Personal debts do not count against you.

Please reach out to me for further details.

Hey Wendell.  i sent you a connection request.

Hi Omar.  Mostly in Will County - Joliet/Crest Hill area.  We own one in cook county- Markham area.  How about you?

Rental property financing for residential investment properties nationwide - No tax return required or personal debt to income counted against you. Bank rates/terms.

We make “asset-based” loans, which means we evaluate the cash flow of your rental property rather than your personal debt to income ratio.

Our typical client owns 5 or more units, and has been turned down by the bank due to insufficient income shown on their tax returns. We make it simple to qualify and use a common sense approach to approving your loan. Personal debts do not count against you.

Bob Green

THG Capital Fund

www.realestatelender.info

Greetings all.  My name is Bob Green from Chicago, il - The Windy City and land of opportunity for real estate investors.  Can I get a A-men.  I've been investing in real estate for about 10 years.  I use to flip but now building up a portfolio of buy and hold as a retirement plan.  Man! am i having a blast with this stuff.

I'm here to network with like-minded people and share my vast knowledge of real estate and different types of financing, also.  Looking forward to sharing and learning a few new things, too.

Please reach out to me anytime.

Best Regards,

Bob Green