All Forum Posts by: Kevin Romines

Membership in a Multi-member LLC comes with each member owning a certain amount of shares. To be able to sell, the majority of the members and or their controlling share is all that is needed to make the decision to go forward or not based on what the majority members decide. So long as the majority decides to sell, it will out weigh the minority in this case.

Profits and taxes will also be distributed according the each members share of the LLC, unless there is a written agreement otherwise.

I hope this helps. 

You can get a conventional loan cash out up to 75% LTV, any lender can offer this. If they don't or wont due to the fact that its a duplex, its because they as a lender have an overlay that Fannie Mae / Freddie Mac doesn't have? There are also lenders that will give you a HELOC up to 80-90% on this. Do some searching, you will find the best lender.

As far as Short Term Rental income, most lenders can not count the income until it shows up on your tax return. Do you have 2021 tax return with this income showing up on it. If so, it should be counted. If not, the appraiser will show what the market rents are (long term) and you should get credit for that rental amount. 

I hope this helps. 

What you are describing is a development loan. Hard / Private money lenders will only lend about 50% LTV on raw unimproved land. Once all the horizontal work is done (water / power / sewer lines in, grade established, road improvements) then you go vertical. Once you are at vertical, the lender will go to 70-90% of LTC or loan to cost based on the max. loan being 70-75% of ARV or after repair value. So comps will need to be pulled to see what the end value of the units will be and the max. loan will be 70-75% of that number.

Most of my clients will want me to build in an interest reserve, meaning that part of the loan amount covers the monthly interest payments while the construction is being done. If done right, the only out of pocket cost is the cash to close the loan that will be needed. No monthly payments after that up to a certain amount of months. If you stay on track with your proposed build schedule, you can refinance out to a commercial loan with market terms after that. 

I hope that helps?

As mentioned above, a LOC on the portfolio will be one of the best solutions to consider. It allows you to keep the super low rates you already have locked in, but still have access to the capital when you need it. Should the rates come down in the future, you can always refinance the LOC into a new LOC, also allowing you to pick up additional value since the last LOC was done. That would be the route I would look into in your situation.

I hope this helps?

Jumping in here. A hard money loan would only be used if you need to close really fast to get the deal or if a rehab is needed before refinancing. If neither of those 2 things exist, then there is no need for a hard money loan. Hard money will be anywhere between 10-25% down depending on the experience of the borrower and the lenders programs. Its best to get with a lender that does hard money frequently along with the conventional, government and Non-QM loans. It is these rare loan officers that can show your full compliment of options. 

A conventional loan for a single family rental is 15% down and a 2-4 unit is 25% down. There are some Non-QM loans that can go to 80% LTV on 2-4 units so it would be 20% down on those loans.

The other issue you can run in to in Ohio and some other states is small purchase prices. The typical minimum loan amount with most lenders is $100,000 and occasionally I have a investor at $75,000. If the purchase would cause the loan amount not to hit at least the minimum limits, then your best bet is a local credit union, they are regulated differently and can do these loans at times. Not all of them will, so burn up the phones if you need to?

I hope this helps?

Stack up those Benjamin's in your savings and use them as the cash needed for your next purchase. That is a safer way of doing things considering the higher interest rate environment and the economy as a whole. Also, consider getting a HELOC on the investment property. You can get up to 80% on those and a cash out is limited to 70-75% depending on how many units the property is. Use the HELOC as needed, pay it back and restore your equity to be used on future deals.

I hope this helps?

Yes, they are available in the Non-QM space, however the rate is typically high enough that it erases the benefit of interest only. I haven't looked at them in a while, let me know if you want more info?

I'm not sure how many units this is and not sure how many properties you own. That said, I feel like your best option for a loan is not a cash out refinance, but rather a HELOC on an investment property. This allows you to keep the lower rate while still accessing the cash from the HELOC. Quorum Credit Union does these. They will go to 80% last I knew. There are also several other lenders that offer these loans as well. There has been many threads on BP regarding these lenders. Look up these threads and call these lenders to get their terms on these loans.

I hope this helps? 

The loan you are looking for is a bit of a unicorn. A non-owner occupied Mfg. home loan doesn't really exist in the conventional, government, Non-QM worlds. The only place you will find this kind of loan is with a local credit union or a local community bank as a portfolio loan, and not all will do this loan, so burn up the phones finding lending for it.

I hope this helps?

What you are referring to is a seller carry back. The seller will carry back 20% in 2nd mortgage position to the 1st mortgage. Some of my deals are done that way and have resulted in my buyers bringing anywhere from $20K to nothing to the table to close the loans. Not all lenders will allow this, so it takes a special lender with special terms to get this done. I have done this with both hard money as well as private money. Because they are asset based lenders, they will allow an arrangement such as this.

My suggestion is to get the portfolio taken down in this way and then refinance to either individual loans or a portfolio loan to get it off the hard / private money. 

I hope this helps?