All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Looking to make my First BRRRR
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Xavier A. Malave:
Looking to make my first Brrrr in San Antonio, Texas. If anyone has some properties under contract and want to get out let me know or if someone is looking for an investor let me know. I’m open to learn in any way possible, while I try to figure how to make my first deal. Any help will be much appreciated. Thanks!
Xavier - are you looking to purchase all cash or use a Hard Money Lender?
Post: Desolately Need Help; My income doesn’t count towards FHA loan
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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- Votes 4,423
Be careful with the people suggesting DSCR loans for this - DSCR Loans cannot be used for house hacking as they have to be pure investment property loans only (can't live in any of the units)
Post: Commercial Mortgage Question
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Matthew Crivelli:
Commercial DSCR loans are available for 1-4 family residential homes. You will see a major difference in the terms presented when looking at 4 units compared to 5 units. Right now 5+ unit rentals are being highly scrutinized in the commercial space, its difficult to get funding for them.
Lenders will never look at a portfolio and count the lot as one multifamily. They will be looked at individually (4 unit property + 5 unit property, not 9 units) Also in most cases, you can't package a 1-4 family & a 5+ into one loan. You would need to take two loans to make it work as they are separate asset classes.
Mostly but not completely accurate. A lot of DSCR lenders will offer the essentially the same "DSCR" product up to around 8-10 units (same essential underwrite) and can mix and match in a portfolio loan. Generally are going to want to see at least 3 properties for a blanket portfolio loan however
Post: Have you borrowed through Host Financial? Looking for feedback
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Yes, but we prefer to work intermediary specialists such as Host to better manage and streamline the origination process
Post: Paying down principal
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Yes - its pretty standard to require a cushion over and above the price on a portfolio loan, its to prevent the bank (lender) from adverse selection, i.e. the borrower releasing the better portfolio properties while keeping ones that are more troubled or not cash-flowing as well as collateral
Post: Having Many Lenders Financing Different Deals 4U
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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I think an investor should have one or maybe two dedicated lenders if doing scale. Pretty much all lenders will eventually regress to the same general terms/rates in line with the market, so best to find one you trust and can rely on and like working with
Post: Have you borrowed through Host Financial? Looking for feedback
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Dave Finigan:
I am doing a cash-out refi on an STR townhome/condo in a vacation/resort community. It seems lenders in the condotel world are hard to find right now. Anyway, if you or someone you know has worked with Host Financial, I'd appreciate your feedback. Thanks!
Yes - Host Financial is a great shop, probably the nations best experts at the Short Term Rental lending landscape
Post: Please advise , review this numbers for me , DSCR LOAN
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Pretty sloppy and confusing Term Sheet in my view - a lot of DSCR lenders should have pretty similar rates and terms over the long run, so a good way to differentiate and pick out the best ones are the ones most transparent and explanatory over process and loan structure
If I were you, I would look at it like this:
$296,250 Loan Amount
8.875% Rate
4.35% points (5.43%! if you include the processing, underwriting, credit report, doc prep fees)
75% LTV
1.11x DSCR
30-year term with IO for the first 10 months
Prepay is unclear but assuming "Hard 60 Months" = 5% for five years (another reason this is a rough/shady TS - its not clear at all what the prepayment provision is - nobody knows what "hard" means)
I don't know the exacts of the deal, but the pricing is also poor in my view, we would probably be around 8.25% with the 4.35% points or with a more reasonable 2% fee (instead of 4.35%) if at the 8.875% rate. [Note - things can change daily in this environment!)]
Post: Pulling Equity out of Property
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Chad Davis:
@Account Closed We are a DSCR lender and LLC is ok. Fixed rate and ARM options available.
Yes - you are probably going to want a cash-out refinance loan through a non-QM "DSCR" lender - plenty of great options here on BP - https://www.biggerpockets.com/...
Post: Newbie trying to understand how to scale
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Every situation is different but generally the best approach is likely getting standalone conventional loans for your first approximately 1-5 properties (assuming your DTI can qualify and the paperwork is not too burdensome). Around hitting the 5 property mark is when most people reach the "second stage" where you are trying to scale and its not as easy to qualify for DTI that most people switch to commercial "DSCR" loans or HELOCs etc.