All Forum Posts by: Sarah Hatton

Hey Chad, 

if you're looking to broker private notes I would reach out to Geraci Law Firm, they are experts in this field. 

Hey Sean, 

There are a handful of states that require lenders to be licensed in that state with a physical office to conduct business; ND, SD, NV, VT are a few that come to mind. The 'work around' some lenders do is register with a licensed broker to run their loans through. There's some gray area around wether this is legally acceptable, I've heard horror stories from a lender who did this and was still fined heavy penalties by the state. I think ultimately the level of entry and risk is higher for smaller lenders so it's easier to stay out of these states. DSCR loan many be a better option; these larger institutions are more capable of entering these markets. Happy to help out there if interested, otherwise best of luck on the loan hunt!

Hey Viktoriya, 

IF you have a good W2 paying job go the conventional route, better interest rates and lower down payment. 

Once you hit your limit for conventional loans (and I believe that number is somewhere around 10) you can move into the DSCR space. These loans qualify the asset, not the person, and do not report to personal credit. As long as the property qualifies and you have the liquidity to purchase the property you will be approved.

Either way congrats on taking this next step. Good luck!

Hey Craig, 

Does your loan have a prepayment penalty? You may be able to refinance into a hard money loan with rehab included. 

Hey Rich,

Is there a reason why you're looking for AIRDNA to determine short term rents? Most lenders will order an appraisal based on STR rents, this helps in the case where a house has been renovated and AirDNA does not reflect the increase in nightly rate.

As far as seller financing...no lender or institution I've ever heard from will allow for a second. Best of luck with your search!   

Hey Raymond, 

Every institution that offers DSCR loans has different credit box requirements. There are some that will require owning a home within the last 12 months but it is not a rule across the board. I would suggest shopping around!

Hey Mike! 

I would suggest using hard money for both. First, for a fix and flip loan to rehab the main house while you work with the city on splitting the lot and with an architect for permit/plan approval. Once that happens you can apply for a construction loan for the DADU and ADU build.

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Some HM ad DSCR lenders will require an entity. Reason being these are business purpose loans and nothing shows that more than it being held in an entity. If you want to close as an individual its possible, you options may just be more limited.