All Forum Posts by: Ryan Keenan

Originally posted by @Lee Ripma:

@Ryan Keenan Cost is how much you are into the property. Value is what the property is worth. So the loan can be based on the cost, or it can be based on the value. So let’s say you’re all in 200k on a property worth 300k. A loan at 75 LTC would be 200*.75=150k. A loan at 75 LTV would be 300*.75=225k. So if you want all your capital back you’d want the LTV. But then you have no “skin” ask capital in the deal. So bankers often don’t like that since you could just walk away if something goes wrong. So they will do a refi based on cost. Make sense?

Ok I see now it's better to get a refinance based on LTV.. I wouldn't want to leave 50k in the deal.. so if you use hard money you can refinance with commercial lending right away based on either ltv or ltc? And if you want to refinance with a conventional loan using hard money you will have to wait the 6 months to a year to refi?

Originally posted by @Lee Ripma:

@Ryan Keenan Depends on the commercial lender but with mine this is no seasoning. He will go 85 LTC after rehab is done and 75% of the units are full.

Some make you wait 6 or 12 months to refi based on value. As I said before the holy grail is those who will lend on value without keeping capital in the deal. I have yet to find a lender who will actually do this but I’d love to.

Stupid question, but half to ask. What's the difference between LTC anf LTV? Are commercial lenders the only banks that deal with LTC?

@Lee Ripma Hi, very interested in the brrr method. Curious when you refinance with a commercial lender is there a 6 month seasoning period or can you do refinance as soon as the rehab is done based on the new ARV? Thanks!

Hello again bigger pockets people. I just wanted to clarify the rules when doing a cash out refinace. Buy all cash- no 6 month seasoning required? Use hard money- there is a 6 month seasoning period?

@Amanda G. That would be awesome if that works! Hope it's not just for owner occupied!

@Amanda G. Thanks for your input. Are you planning on putting 25% down then taking a loc for the rehab? Since I dont have the money yet to buy all cash it might be hard to find a house a bank will lend on that needs repairs.

Hi BP investors, I have some questions about using a personal unsecured line of credit. I do not have enough money to buy a investment property all cash so I've been thinking about putting 25% down on a value add property and the then taking out a unsecured line of credit to do the rehab. After the rehab is complete and a tenant is in place along with the six month window I will refinance to pull the money out. My question is it difficult getting the refinance after you have used a line of credit in regards to your debit to income? For example let's say you purchased a property for 75k and put 25% down. Next you took a unsecured line of credit of 30k for the rehab. Once complete the property's value goes up and you can now pull money out to pay back the loc. 1) does using a loc hurt your chances on refinancing? 2)Is there any way to tell the bank beforehand of the plan and verify if one can do this? 3) can you use the same bank for the purchase , the line of credit, and the refi? 4) has anyone used this before? 5) thanks for your input!

@Ricardo Diaz No problem

@Ricardo Diaz Hi Ricardo, not sure what type of work you need done, but I've been using a guy for over 6 years on my rentals. Prices are fair and the work is excellent. Also fully insured Matt Como Carpentry (203)232-0077

hi bp, question about tax deductions. Are there any tax deductions that lenders roll back into your gross income when applying for a new loan? Would rental loss and royalty loss be one of these? 

Thanks!

Ryan