All Forum Posts by: Mike Burkett

@Jon Gorham  Jon, the taxes vary by city, county, and school district.  Some are higher and some are lower, but you will pay 2.6%-2.8% of the appraised value annually.  Mike Burkett - SFI Loans - Hard Money Lender - Dallas

@Eric Aello  Welcome Eric.  I've been in this market for many years.  Give me a shout if you have any specific money questions. 

@Elenis Camargo I've been lending money on commercial and residential properties for a long time. I have never lent money based on appraised value without considering the purchase price. Lenders want you to have some of your own money in the deal. I have heard of HML that will lend you 100% of your purchase price + rehab funds up to 100% of rehab cost, but they won't exceed 70% of the after repaired appraised value. I don't see that very often and it is generally more expensive.

Much more typical is lending you 80%-90% of your purchase price at closing + up to 100% of your rehab cost with the combined loan amount not exceeding 70% of the ARV.

When you refinance, the lender will lend you up to 75% of the ARV (sometimes 80%). Depending on the type of loan, you may not get to 75% because the cash flow will not be sufficient to support a 75% loan. Ask lenders how they calculate that cash flow.

As stated above, analyze your total costs going into the project so you can calculate how much of your cash will remain in the property once you refinance.  

@Jason DeFazio  try Googling the following:  "fannie mae llc transfer due on sale investment properties".  Click on the Fannie Mae servicing guide.  It sounds like in some circumstances Fannie is allowing transfers from individual names to LLCs without triggering due on sale, if the loan was originated after June 2016.  

I would do more research on the umbrella policies and "piercing the veil" of the LLC. That should help you with your decision.

@Marta Frey  If you and your husband can qualify for conventional loans, you need a Fannie or Freddie loan.  Regular mortgage person can help with that.  I'm happy to help you with that.  If you can't qualify, there are 30 year investor loans available, just not with the banks.  I'm happy to walk you through that as well.   Good luck.  

@Robert Saunders  I have never required anyone to own a primary residence.  

@Nghi Le  I stand corrected.  Thank you for the clarification

@Shawn Campbell  My experience with delayed financing is you will receive the same loan terms you would have if you had financed at the purchase closing.  Those terms are based on the purchase price.

@Steve Powers Steve, 2% origination and 10%-12% is absolutely available in the Nashville market. That would cover 80%-85% of the purchase price and 80%-90%of the rehab. Total loan not to exceed 70% of the ARV.

@Ryan Johnston We issue proof of funds to our clients all the time. I have never heard of a seller rejecting or discounting the value of our POF's.