All Forum Posts by: Robin Simon

Oh sorry, I misread.  Are the Vacasa estimates inclusive of their fee?  Maybe they are taking out their management fee from the revenue estimates (vs. AirDNA which is pure revenue)?

"DSCR" type loans are specific to non-QM lenders which are typically private companies (not banks or credit unions) and the loans are securitized (not held on the balance sheet like a bank or CU would), you'll need to find a mortgage broker that works with non-QM shops or a direct lender that specializes in DSCR

 Blessing in disguise - any agents thats not calling you back immediately at the onset are likely to not be responsive through the whole process.  Consider the ones that have called you back as "passing your test" and go for one of those!

Hi Dayanis - I'm a lender that uses AirDNA to underwrite revenue for a ton of loans, we have found it to be a great tool and very accurate, typically double the earning potential if utilized as a long-term rental.  Keep in mind any projections run by a selling agent / property management company (VaCasa) should be taken with a grain of salt, since there is a conflict of interest and they are incentivized to pitch the potential of a property as high as possible

 Wow this sounds like a horrible experience!  Thanks for sharing for others and I can confirm this is not normal behavior from lenders, you should have had a completely different experience!

Are these turnkey properties or is the under $80k value pre- any rehab?

@Erik Estrada looking forward to connecting, we are getting ready to roll out 85% LTV on our DSCR program shortly

Thats going to be very hard to find a DSCR lender for this situation as you have double factors working against you (DSCR lenders are mostly restrictive or won't do rural and also property values typically need to be in excess of $100k). Your best bet would be to do a blanket portfolio loan and really choose properties that are in the $70k range in value and not too much lower

Are you looking to occupy the home? If so, then the DSCR loan won't work for you (DSCR is nor non-owner occupied only, strictly)

Hi Lore - I can share our guidelines which are in line with the industry and comments above, but a little different. We are also a BRRRR specialist in that we have complementary programs DSCR and a bridge/hard money team, so we do a lot of "double deals" where we in a BRRRR we finance the purchase through hard money loan and then refi once the property is rehabbed and rented, all in one house (makes it much easier - don't have to go through the whole financing process again so quickly!)

What do you require for your DSCR loans? (i.e. documentation, landlord experience, credit scores above x, net worth above $xxx)
Light Documentation based on the property, no experience required, minimum credit 620, no minimum net worth

Do your loans have pre-payment penalties?
Our standard prepayment penalty is 5% for 5 years, but this is flexible (can have shorter/lesser penalties or none at all, but will pay higher rate or closing fees)

Closing Costs

Typically a 1% closing fee (only incurred if loan closes, can pay more in fees if you want to buy down the rate, less prepayment penalties, etc.).  Pass-through costs such as appraisal, credit report, docs, entity reviews, title etc. usually ~$3k or so