All Forum Posts by: Stephanie P.

I'll be frank.  Not sure why everyone has their knickers in a bunch about it, but there is absolutely nothing wrong with the quote the lender gave you.  Your friend is not taking advantage of you.  9.5 is the price at par.  You can buy it down all the way to 7.5% with a couple points and at that loan amount, it's worth it.  I read that you're worried about the lock period.  You can buy it to 45 days if you like, but a 30 day lock should be all you need if you have your paperwork in order. Get it over to him and get the appraisal ordered.

You've got a loan that's 68K.  Your score is below 700 and you're still getting 80% loan to value which, in this market, is a gift.  

@Patrick Wood

So MIH stands for Moderate Income Housing right?

If you're looking for better than 7% on multi family housing, I'd check with local banks and credit unions that have a commercial division.

Condos are frightening, even warrantable ones.  It doesn't take much to make a condo project non-warrantable.  If someone or an entity comes in and buys a large portion of the units, if it was close on the owner occupancy percentage and then a few people sell or if the association doesn't have enough money in reserves, the condo can become non-warrantable and none of those things are things that you have any control over.

 Tyler

It's really important to get a team of professionals that can help you with this endeavor. First get a Realtor that really really knows the area. They should be able to not only give you sales comps, but rental comps. They should also be able to find you properties that have been renovated and properties that need to be renovated. This will establish not only your purchase point or below, but your projected ARV and rental amounts. The numbers will tell you the story.

Once you've found a Realtor, ask them if they have anyone that works with DSCR financing and hard money and they should be able to guide you from there.

Stephanie

80% cash out on DSCR is out there. PM sent

If I'm reading your right, you're looking for down payment assistance to purchase your next deal and you want to use a HELOC. It can be done, but be careful when overleveraging.

Call Amy.  I think she may be able to help you.

If there is a large swing in value from when you purchased it to now, some DSCR lenders may not accept the new value or may require a 2nd appraisal which can be expensive when dealing with a multi-family 5+ unit building.

I just spoke with one of my lenders about this topic and he said "As long as there are DOCUMENTED REAL IMPROVEMENTS they would be okay with a new value."  Meaning you would have had to renovate the building to justify a swing in value within the last 12 months and that swing would have to be supported by higher rents.

They were a little lower than now, but not too much.  It was in the fall last year.

Not too many lenders out there that will allow for a seller 2nd to 90%, but they are out there. Here's the rate range from the DSCR lender on that specific product. The different tiers are 650-699 middle credit score, 700-749 middle credit score and the lowest rate goes to the 750+ credit score folks

 Mid markets, but older markets like Kansas City and Pittsburgh are excellent in my opinion.  I've said this a few times here, but we closed a beautiful 29 unit building in Kansas City on Benton Blvd and it's a cash cow.  As the new owner raises the rents, it'll be even better.  PM me for financing details if you'd like.

Stephanie