All Forum Posts by: Robin Simon
Robin Simon has started 636 posts and replied 3875 times.
Post: Refi to cash out? Or wait?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Erika Nuñez:
My husband and I are lost on what to do :(
Current Situation:
- Have a house that’s built a lot of equity
- Have a HUD loan of 30G that was added to the back of my mortgage.
- My house loan is still FHA at 4.6%
So now, I have a quote for a owner occupied refi to conventional that will…
- Eliminate my HUD 30G
- Give me back 18G
- interest rate rises to 6.3% and mortgage payment goes up $400
- closing costs 15G
we are not sure if we should wait for interest rate to go down or if we should just go for it, refi later and use money to complete a down payment for a new rental.
Hubby also thinks the closing costs are way too high!
Appreciate and welcome any advise!! Thank you so much
Rates have dropped quite a bit in the last week - I would rerun the numbers here and see how(if) things have changed
Post: Austin Investors & Accountants, Coffees on me!
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
I'd love to connect as well, local Austin private lender (also CPA)
Post: Private Financing Analysis
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Jeremy Suffel:
All,
I'm currently analyzing my first BRRRR purchase. Being new to this, I want to make sure my financing is solid.
The offer:
$75,000 Credit Line @ 5-6.5% interest
$5,000 one time fee at refinance (no interest)
If I sit on the money without refinancing beyond a year then an annual fee of $1,000 will be assessed, this one will accrue interest.
I'm just curious if this is a good private lending offer or if I need to be seeking a better deal.
The $5,000 fee seems a little steep to me to be honest. Thats a MINIMUM 6.7% extra interest charge (assuming you max out the full credit line the whole time)
Post: DSCR recommendations Washington State
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
A lot of the best DSCR lenders are national platforms so you will likely want to go with the best overall lender, rather than necessarily a local lender specializing in Washington (local expertise is typically more relevant in hard money / larger commercial)
Post: 5/1 ARM on investment property
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Andrew Patterson:
Currently have two SFH rentals and looking to jump to multifamily. Second rental was purchased this year on a 30 yr fixed. Called the same lender and had a lengthy conversation about scaling up and etc. and requested a prequal letter. The prequal letter he sent was for a 5/1 ARM. I asked for some clarification on that and he said all investment properties are 5/1 ARM. This is not being financed as a commercial loan, this a personal loan. Can anyone offer advice in this situation? I think there are too many unknowns to be getting into a gambling situation with interest rates 5 years from now. Any input is appreciated. This is a local credit union where I live. Thanks!
I mean maybe for this specific Credit Union lender they might only do 5/1 ARMS on investment properties but that is far from a "rule" in financing, there are plenty of lenders who will finance your rental properties out there with a 30-year fixed rate loan if you shop around even a little bit
Post: Arizona 1-4 unit resi investor property permanent financing
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Would love to potentially help as well. Are you looking to BRRRR (rehab and refinance into the perm)?
Post: Non Owner Occ,SFR loan rates (July 2022) too high to cash flow?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Its definitely a very challenging time to get some of these properties to cash flow, playing out exactly as you are describing above. Looking to duplexes or triplexes (vs. SFR), being able to stomach pretty high points 2,3, or even 4 to get the rate down or just being aggressive on offers under asking are some things that might make sense
Post: AirDNA-Pay Subscription- Worth it?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Probably depending on your volume. If you are just looking to buy maybe 1 or 2 this year then probably not - if you are looking to be aggressive and scale then yes, absolutely
Post: DSCR loans and LLCs - which state?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
No, it shouldn't be an issue
Post: What state(s) should I look into buying rental properties?
#3 Private Lending & Conventional Mortgage Advice ContributorPosted - Lender
- Austin, TX
- Posts 4,576
- Votes 4,423
Quote from @Gregorio Villar:
Quote from @Dalton King:
I would start by looking at your local market. If you are not too into statistics, find a realtor that posts market updates/research on your local market. After looking at the different areas of your market you can put together a pretty good idea of if your market is good to invest in.
Other than localized factors there are things that are more national/federal like rates/broad price reduction.
Things like # of homes sold, on market, expired, amount of homes being bought as investments, rental rates, vacancy rates, apprecation, etc.. will help identify a good market.
great recommendation on local market. i guess that makes sense since i'm at least somewhat familiar with the area i live in and it's cheaper to do in-person research starting out.
I'd definitely agree with this - its best to both jump in and not spend too much time hesitating and to not have too high of expectations of hitting a "home run" on your first deal (rather look at it as a learning curve). Even though other markets may be better, the experience you gain if you have boots on the ground in your local market is a huge plus