All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Rental Property Loan
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @David Teixeira:
Hello,
My name is David and I'm looking to buy my first investment property. The property I'm looking at is already listed on Airbnb and generating 40K/year. With very little money for down payment, what are my loan options?
Thank you in advance for your advise.
David
how little is your down payment right now? Sounds like a situation where you might want to go in with a partner/LLC format
Post: LLC for Private Lending
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
No need to wait to engage with private lenders to first create an LLC, don't let that delay you. These days, its pretty cheap and easy to create a standard LLC with very limited lawyer costs (if any)
Post: Construction loan at 9.75% or pay cash?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Almost always depends on your personal financial situation - most importantly, what would you be doing with the cash for the next year that you hold on to if you don't take on the debt?
Post: Income Approach vs Past Sales
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Your valuation approach should be more towards income approach for the multi-unit properties because thats who the potential buyer pool is (by definition, investors only since they are multi-unit properties). Ideally, you make the income approach the dominant value indicator and use sales comps as a secondary/confirmatory value approach. 3-BR SFH is definitely not a good comp for a triplex, as the buyer pool for 3BR houses are primarily familys looking for a place to live, and not concerned about rents by the room
Post: Money set aside for Investment STR - how to evaluate purchase
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
General, STR lenders will tend to require liquid assets of about 6 months of payments (including tax and insurance in addition to debt service), I would say thats probably the benchmark, but you can adjust for your risk appetite
Post: 5 Advantages of getting a DSCR Loan
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Beth Johnson:
Love DCSR loans as an alternative when conventional doesn't work but the main issue for most investors is the inability to refinance out without a 5-year prepay penalty. Have you come across any products that don't have this stipulation? I haven't looked into it too hard but all the lenders I've asked have this prepayment penalty which makes it extremely expensive to do a cash-out refinance to pay back private creditors or to pull out equity to acquire more properties. What are your thoughts on this since it affects a lot of investors who need to be able to access their cash/equity sooner than the 5 year mark.
There are plenty of options for lower or more lenient prepayment penalties right now, but its going to really hammer the rates. If you are looking to purchase, a good strategy might be a DSCR loan with low leverage and low prepayment penalties, with the look to Cash-Out refinance in the future into another DSCR loan when rates come down
Post: LOOKING FOR HARD MONEY LENDERS IN SALEM, OREGON
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Are you looking for local lenders only, or would you be open to working with a national platform that lends in Oregon and is familiar with the area?
Post: Buy and hold long term interest rates
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
I feel you - we are in the 7s right now (although just quoted several deals at 6.75% - lower leverage with great metrics). I'm optimistic and hopeful that the CPI print on Wednesday comes in lower than expected, might see some rate relief if we get good news
Post: Mortgage Notes and Tapes
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
What are you looking for in particular, buying, just info, etc?>
Post: Medium Term Rentals - Next Big Thing?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Conner Olsen:
It's a great investment strategy and is less work than traditional STR. As Bruce said, there's a significantly smaller market. That being said, the demand far outweighs supply. I'm booked 90%+ with MTR.
It definitely varies by market, especially depending on the local regs. I know many that have had huge success with it here in Austin because of the uncertain/unstable STR regulatory regime