All Forum Posts by: Robin Simon

Good post 

Couple good ones to add

Ability to Borrow through an LLC - reduces your liability, able to partner up and doesn't affect your personal credit report

Partnership - a lot of real estate success is based on working in partnerships with people with complementary skillsets, can do on a DSCR loan but not conventional

Loan Size - Can get up to much larger loan amounts with DSCR

I believe you are referring to switching to DSCR Loans. Lenders differ, but usually it would still be OK to do loans as an individual (LLC or entity not necessary).

For us, we lend DSCR to either individuals or entities in most states, but a handful we do in fact require it to be an LLC or other corporate entity

Fully Eligible States (Lend to Individuals or Entities)

• AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, ND, OH, OK, PA, SC, SD, TN, TX, VT, WA, WV, WI, WY

Partially Eligible States (Lend to Entities Only)

• GA, FL, IA, MS, MT, RI, VA

Sounds like you should have no problem qualifying for a hard money loan. Are you planning to fix and flip or BRRRR once the rehab is done, or keeping options open?

Best thing to do is to map out (understand) your duration expectation (how long are you planning to hold the property / debt).  That should really be the main driver of finding the sweet spot (i.e. if you plan on holding for a long time, then buydown multiple points, if you think you might refi or sell soon, probably not worth it)

Its very hard to make the economics work as a lender at such a low amount, have you considered private money or an individual looking to deploy capital?  I would also check out the Creative Financing board and exploring some of those options/ideas

 Yes - you will probably need to find a credit union or local back that can get a little creative

Commenters above have good info on qualifying with conventional/DTI quals, however there is also the "DSCR" loan option that doesn't take into account DTI or income verification / tax returns at all and can allow you to qualify/grow your portfolio quicker

via AirDNA

https://www.airdna.co/blog/7-s...

Myth #1 - Popular vacation destinations or bust.

Myth #2 - The ROI on STRs isn’t what it used to be.

Myth #3 - There’s a high barrier to entry.

Myth #4 - STRs are a full-time job.

Myth #5 - Regulations take the R out of ROI.

Myth #6 - Seasons change, so should you.

Myth #7 - Hotels are the arch nemeses of short-term rentals.

Thoughts?  Agree or Disagree with any?

Will be interesting to see how this plays out - still excruciatingly slow with the city to get the custom new builds (like on the east side) approved and ready to go in a timely manner

Hi David (and Madison!) - there are lots of great meetups in Austin for investors and agents, DM me to discuss (also can just check out Meetup.com and search real estate)