All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: sources of DSCR lending
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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It means that you would personally guarantee the paying back of the loan in the case that you default and the lender forecloses on the property and receives less value in the property than the outstanding balance of the loan, you would be liable to pay back the difference.
Example:
You have a $500,000 loan and default (stop paying), if the lender forecloses and the property is only worth $400,000, you would be liable under your personal funds for the remaining $100,000
Post: Financing questions and suggestions on S. Jersey duplex
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Bill MacFarland:
I appreciate the reply. So to understand correctly your suggesting et a hard money loan to cover the purchase and rehab costs with no-out of-pocket? How much higher typically is the rate on a DSCR loan than a typical conventional fixed? The rents would need to cover the loan & expenses I would imagine to be approved for a refi on a DSCR?
It depends on some factors, but generally its not as much more than you think - something in the neighborhood of 50-100 basis points higher
Post: Financing questions and suggestions on S. Jersey duplex
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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We've seen a lot of people in similar situations having success with a double-financed BRRRR - get a hard money loan for the rehab and then refinance after the reno is complete (target 3-6 months) into 30-year fixed rate financing under a DSCR loan. Don't have to worry about DTI issues or a financing headache (easy qual, even easier if you use the same lender for the rehab loan and the refi loan) and if everything goes right, you can cash out 100% of your basis pretty quick and have a cash-flowing duplex for "free"
Post: Licensed Mortgage Broker Recommendation DFW
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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@Rizwaan Rauf were you able to get fully set up with a lender for your portfolio build in DFW?
Post: Looking for Private lenders??
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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@Ben Seitz have you found what you were looking for yet?
Post: sources of DSCR lending
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
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Quote from @Jonathan Pflueger:
DSCR loans are pretty standardized since they primarily go into securitizations, so a guaranty is typically 100% always required. Lenders do differ a little bit though if there are partners, for example, if lending to an entity (like an LLC) we require guarantees by at least 50% of aggregate total ownership but if you own 25% of the LLC you do not need to provide a guaranty
Post: Looking to find a property to house-hack in the Houston area
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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EaDo or the Heights would be great spots to house hack in Houston
Post: Looking for my first property in TN
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Congrats on being ready to make the leap! Tennessee is definitely a great market to get rolling in
Post: Private lender rates for small multi-family
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Its going to depend on a lot of factors - conventional vs. consumer non-QM vs. DSCR, and then on the big three metrics (FICO, DSCR, LTV) -
That being said, rates are in the high 6s to low 8s range for these types of properties currently in the DSCR product
Post: How many flippers are now becoming landlords?!?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
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Quote from @Anthony Michael:
Being a hard money lender and owning a real estate company, I've been tapped into a general overview of what my clients are going through nationwide. What I'm seeing is a lot of newer investors and realtors miss pricing and not capturing the adjustment of the market. Many of my clients I've funded 6,8,10 months ago are now refinancing their properties with us to hold as rentals. Having 7 projects going on myself in the Pinellas county market, I'm beginning to see a slight drop-off in home values but the demand remains. We get deeeeep discount properties thanks for our direct to seller method which is allowing us to have a great producing portfolio of rentals if need be. So my question to you is, are you pivoting from flipping to holding during these crazy rate hikes?
Are you seeing a decline in your real estate market as well ? Comment where you're investing and what your opinion on the matter is ?
Seeing the same thing here as a lender, the best investors are agnostic on whether they flip or rent/refi on their rehab projects, go with the numbers over emotions