All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Post BP Con Meet Up Oct. 4th
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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I'm interested - do you have a meetup event or something posted on the Real Estate & Meetups page would be great
Post: DSCR LOAN or 5/6 ARM LOAN
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
I think you might be a little confused, DSCR loans can be 30-year fixed rate or 5/6 ARMs, but both could be under the "DSCR" program. Are you asking for a comparison on fixed rate vs. 5/6 ARM?
Post: Freedom Capital Funding, LLC - Long & Short Term Loans -
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Can you clarify what you mean by "conforming DSCR"?
Post: Alternative analysis of BRRR vs sale?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Ryan Braman:
Does anyone have an alternative way of calculating the value of a BRRRR in terms of future income - present value? Annuity, perpetuity, zero-coupon bond with a speculated maturity value? What I'm trying to solve is finding a present value baseline to compare the BRRRR'ing a property vs selling. Am I overthinking this? Does anybody have a simpler way of comparing the two scenarios?
Specifically, I'm in for $230k on a property that will need another $60k to finish renovating. Once completed, I can cash flow without refinancing, around $22k annually. If rates drop I can refi cash out...dependant on rates. A neighbor has given me an unsolicited offer (no $ amount mentioned) to buy the house so they can level it and improve their property value. I'm trying to analyze what the property is worth to me, in order to sell it?
Thank you!
There are lots of instruments you can use, the purest one would be the true marginal investment - the annual cash flow (CoC) of another property in your market you could buy with the proceeds. Or typically the 5 or 10 year treasuries would be a standard baseline (much less risk but also much less opportunity for appreciation vs. a SFR). Your personal tax situation is also low key important potentially as there are a lot of tax benefits in certain cases with a real estate portfolio that can tip the scales
Post: Looking for financing options.
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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how many units?
Post: Financing rental properties
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Anthony Myatt:
What are private investors looking to earn as a return on their money?
Really - the best thing you can do is to get quotes from actual private lenders and then do a comparison of what the terms would be for any private investor
Post: Tiny House Financing
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Matt Ridenour:
Hi everyone. I'm purchasing a tiny house from my local high school building trades program for 55k. I'm paying cash for it up front but would like to finance it to free my cash. Looking for some ideas on mortgage companies to contact. My go-to lender can't do it.
This will be an Airbnb on a vacant lot I own next to another airbnb.
Thanks for any advice!
This comes up from time to time for DSCR / Non-QM lenders but unfortunately likely too small (both in value and size) for any of these lenders
Post: SFR Downtown Charmer
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Congrats! Was this your first BRRRR?
Post: Historic downtown single family long term rental
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Interesting - what were some of the issues with using it as an STR that made you pivot to LTR?
Post: cashout refi options?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Erik Estrada:
Hey Christian,
Most DSCR lenders have a minimum loan amount of $75,000. That means your property will have to appraise over $100,000 to obtain this type of financing.
Yes, this is generally the minimum (and pretty low, lots of lenders will likely have even higher minimums). One potential way to get around it is for a portfolio blanket loan bundling up a bunch of properties, for those the minimum allocated loan amount can drop to around $50k for some DSCR lenders