All Forum Posts by: Stephanie P.

Hi BP,

I hope everyone is well! I haven't read much about DSCR loans; but as far as what i understand - it focuses more on about the potential rental income and overall health of the investment rather than your personal income and/or credit score? I'm guessing the caveat means you need to bring 15-25% down payment and that's sometimes difficult for certain new investors like myself?

Thank you and let me know if some lenders or RE pro's out there know more information DSCR loans!

Hello all,

I fully renovated a property in Decatur, GA but it has been sitting in the market for a while and I'd much rather keep it for a few years and watch it appreciate further than take a loss as it is a great property in a great part of Decatur. The house will surely continue to appreciate while I either rent out the property or Airbnb it. I currently have a hard money loan on the property and am shopping lenders to cash out refi. Is there any recommendations for lenders that would do a 90% LTV with favorable terms? My credit is still very strong and I would refinance and keep it within an LLC.

Would appreciate any insight or help as it has been a very stressful time and I am looking to move quick on refinancing. Thanks in advance.
 

I don't know if equate is the right word, but all of your major HMLs offer DSCR loans. HML was flooded with institutional capital over the last few years, allowing most HMLs to offer a DSCR product through their secondary market investor or allowing them access to the capital markets to sell those notes. So yes, in a sense, because DSCR loans are available through HMLs. Institutional money (Wall-Street) has even changed their outlooks on lending due to HM over the last few years. The very definition of HM is as follows:

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans because of the higher risk and shorter duration of the loan.

Outside of the loan duration mentioned above, a DSCR loan fits that mold. The extent of the qualifications stemming from the borrower is their credit score; otherwise, it is entirely asset-based. If the asset is cash-flowing or the rents are at par with the monthly payment, the vast majority of people will qualify with some DSCR lender, because we are lending money based upon the asset. 

Hello BP!

Currently we own 3 properties under one seller financed mortgage. We are needing to renovate one unit within the portfolio and then sell them individually. What would be the best way to obtain funding for the rehab?

I have two SFH in KCMO that I need to refinace out of hard money loans into a 30 year product. Each tenanted at $1k. They recently appraised at $125k and my loans are about $100k. The lender did not allow me to roll the closing costs into the loan, and needed about $15k of closing costs for each house. I unfortunately can do that right now.

Looking for someone that is a little bit more flexible on LTV with some creative options.

Any thoughts or recs?

Hello BP Fam!

I have an investment property that was acquired Sub-to. The property has ~100K on the mortgage left (in sellers name) and I am making the payments. The property was recently appraised for ~210K. I was curious if it was possible to do a Line of Credit on this property given the mortgage not in my name of my LLCs.

Thank you!

I currently own a rental property out right that I would like to refinance to get my cash back out of it for another purchase. I would like to put the property in an LLC when I do for liability reasons. However, my research thus far says I can not get a 30 year mortgage with an LLC. Without the 30 year term, this move becomes much less enticing. Is there something I am missing? I have looked into getting the mortgage in my name, and then transferring to LLC after mortgage is completed, but I get mixed reviews on this as being a bad idea. How do I accomplish both outcomes?

Hi @Phil Shelton

Anyone that says a HML doesn't do long-term financing is incorrect, numerous do. The standard is 30-years and usually 1% above a conventional loan or so. They aren't holding the note for 30-years, it gets sold on the secondary market, but you have 30-years to pay it off. There is a significant lack of knowledge in our space on what options are out there, I suggest connecting with as many lenders and brokers as you can to see what they might have. I can give you 20 examples of lenders that are on the HM side that do this and I have done them personally for years. A HML loan won't report to the credit bureaus, so there are advantages, many beyond that. It is a far easier underwriting process, feel free to reach out to get some actual feedback on what the markets offer.

So I have been having a lot of trouble getting a cash out loan on one of my properties I own outright, and I thought DSCR lending was going to be my saving grace. Well turns out pretty much my entire investing area is considered "rural" even though this specific property is right in the middle of a 30,000 population town and most DSCR lenders will not loan on it because of this. Has anyone ever found a way around this as I really need this to happen if I am going to scale. Conventional lending is not really an option as I am a college student and dont have much W-2 income at this time.

My wife and I have just bought our 8th door and we use the Brrrr strategy. We have always went for the 30 year fixed because our goal is CF and we plan to hold for a long time. I am only a nurse and my wife is a stay at home mother basically so we arent high income earners . We recently started to run into DTI issues and a commercial lender said I shouldn't be assuming mortgages in my name anymore to avoid this issue. The last 2 loans I took out were commercial loans with 5 yr. ARMS that aren't fixed and I just dont like not having a fixed rate. My question is what would be my best loan option to get the longest amortization, fixed and decent rates without assuming loans in my own name or should I just keep trying for conventional loans and max out the 10 conventional loans rule. I have always struggled with the Refi aspect and what the best options are. It seems like everyone has a different opinion of it.