All Forum Posts by: Ryne Sweeney

I've been doing quite a bit of these DCR loans or the past few years and managers and ops people who work closely with underwriting always tell me that they're going to put these types of loans on the back burner and take priority for a higher loan amounts in general.

They're just not worth it to many lender because it takes the same amount or sometimes quite a bit more work to close a lower loan amount then say a $500,000 or million dollar loan amount. a lot of times these homes that are valued a lot lower. They may have title issues or the owners may have liens that have to get paid off. Not always but it seems to be the case Moore and a $60,000 mortgage than a $600,000 mortgage for my experience.

Also, the cost and rate are generally much higher compared to the loan amount than a larger loan to compensate.

From the borrowers point of view, a property with aloan this small will generally be an incredible investment because a lot of times doubling or tripling your money eacu month. I would anticipate doing a little extra work getting a loan like this closed. But they can definitely be worth it!

@Brandon Croucier 

I talked to a couple of lenders that work in NY and neither were on board with that.

A lender is worried the borrower can claim they live in the property and they may get protection from foreclosure if they file bankruptcy. No lender wants to go thru that. NY is hard to do hard money in general.

This is too hard of a situation for the borrower has put himself in and at this point a mortgage is probably not the answer. 

I told him I couldn't help. Thanks for the info all. 

Hi all,

I am searching for a lender that will do a pretty hairy deal. The borrower is occupying the property and is in pre-foreclosure. She owes about $150k and the property is worth $500-600k. She is looking to get out of foreclosure (and if not a crazy idea) pull out some cash. 

I advised the borrower selling the property is the best option, but I know the infinite wisdom on BP may have other options I have not exhausted yet.

Anybody have a solution for the borrower to stay in their property? 

Thanks in advance. 

I have a friend that buys and sells quite a bit in SoCal. He knows some wholesalers that work out here. Seems like you may have some overlap. If it's not too crazy I can connect you two. 

Hi Jonathan. What are you looking to accomplish? We work in VA.

Velocity

Yeah, my company does. We're starting to see more HELOCs and 2nd mortgages on investment properties nowadays.

We deal with pretty much only real estate, investors and self-employed borrowers.

send me a direct message and I'll get you a little bit more information.

It could be 10:1, you could have an 800 FICO, and $5 mill liquid. No lender will lend that high leverage. 

The issue would be your wife documenting she is the sole beneficiary. But without a will or trust, I dont think a conventional lender could fund it until it goes thru probate.

If you can document your wife's ownership this can be treated as a DSCR cash out. You can close in an LLC with both of you in it. No seasoning is needed with our bank and you can get 75% of the appraised value.

Let us know how this one plays out.