All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Purchasing second home as rental using an LLC
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Cody Wageman:
Yeah that was the feel I was getting @Robin Simon Thank you. So if we are trying to do a partnership on purchase for a STR and go the traditional loan route, how is the best way to do that with a partnership and split up things like the down payment?
I'm not too sure but I believe if you are doing a partnership (anything outside of something like a married couple), 99%+ of the time you can't go conventional/traditional and will be better off through the DSCR route with an LLC. Whenever doing a partnership is almost always much better plan to formally document everything in an LLC or partnership agreement to avoid messes down the road. It is also much easier to qualify on an STR through a DSCR lender since they are much more likely to be STR-friendlier and qualify based on STR income potential vs. much more conservative conventional underwriting
Post: Purchasing second home as rental using an LLC
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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The general split is if you are still able to qualify/handle the paperwork associated with a conventional loan which requires a strong DTI, W2 - in those cases you need to borrower through yourself. If you go the "DSCR" loan route, then you will be able to go through an LLC (and have the protections there) and be able to qualify much much easier (no DTI), however rates may be a tad higher
Post: McMann Commercial Lending
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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their website seems a little sloppy for a national lender. For example, their latest post is dated from March 2020..https://mcmanncommerciallendin...
Post: Private lender wants to change name/address
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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do the actual note documents govern this issue at all? The first place to look is how the note itself was written, a good set of docs would have covered these situations in the doc language itself
Post: Advice on Looking for Commercial Lender for a 5-Unit Building?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Kristian Kotov:
Quote from @Robin Simon:
Quote from @Kristian Kotov:
I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.
I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this?
Full Disclosure: It's my first time investing.
The 5-10 unit multifamily is a pretty distinct financing niche - most options outside of a traditional bank or credit union will likely underwrite it based on the asset not your personal income
Yes - personal credit and a very limited review of liquidity (want to see like 3-6 months of debt payments in the bank or assets)
Post: Advice on Looking for Commercial Lender for a 5-Unit Building?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Kristian Kotov:
I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.
I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this?
Full Disclosure: It's my first time investing.
The 5-10 unit multifamily is a pretty distinct financing niche - most options outside of a traditional bank or credit union will likely underwrite it based on the asset not your personal income
Post: Mortgage Question for Single Family Primary Residence
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Grace Maxwell:
Kind of like asking "How much does a new car cost" - lots of variables at play there. For reference, here is a table of Fannie Mae's loan level pricing adjustments applied to the base rate in the form of points:
display (fanniemae.com)
Of course then arm vs fixed and whether or not it is even a conventional loan come into play on top of those variables.
The mortgage news daily survey shows a daily average for 20% down, good credit primary residence that you can compare your quotes against: https://www.mortgagenewsdaily....
Mortgage News Daily - Mortgage And Real Estate News
Agree with @Grace Maxwell here, if you want to track the most up to date conventional rates, mortgage news daily is the best source
Post: Financing for new LLC
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Agree with most of the commenters here - a DSCR loan is likely your best bet
Post: Bought at the top, what are my options?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Nate Robinson:
Hi there,
Im brand new to real estate investing but running into a problem I’m hoping the BP community can offer some advice on.
We have a town home we love and are now renting. We bought a house for more space and eventual kiddos, but unfortunately we definatley overpaid for it over the summer. Since buying it we are running into every issue imaginable despite getting multiple inspections.
We’ve been here a couple months and are already regretting the decision and looking for an out. Not great I know. But wanted to see what options we may have.
Selling it now would be a substantial loss.
Long term renting would come nowhere near break even.
We can’t air bnb due to city. (We’re in Austin).
It seems like medium term rental (30 day rentals) may be our only option in getting close to break even.
Are there any other options I’m not thinking of if we NEED to get out? We’re trying to just grind through it..
I would definitely go the medium-term rental route, I know a lot of people here in Austin that have gotten great success through that option, let me know if you'd like me to connect you with some MTR/STR experts here in ATX
Post: Advice on lending for an inexperienced landlord
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Some banks and private (DSCR) lenders will shy away from whats classified as "first time investors" or throw some restrictions on there, but there are BRRRR lenders out there that do not discriminate on experience