All Forum Posts by: Stephanie P.

Maybe see if you can set up an escrow account for the trust and have a title attorney hold it in escrow.  Not sure, but talk to an attorney to take it any further.

 Hard money as others have said.  You'll have to get them to payoff the first and then provide an accurate and reasonable scope of work to get the repairs paid out in draws.

If you're still looking for a lender for commercial real estate investments, we just closed a 29 unit building in Kansas City with no income docs from the borrower on a DSCR loan.

Loan size was 1.6M.

Refinance it in your name with conventional financing. Then put it in a trust. That way you get the cash to do what you want and you're protected. If you do it in a sole member LLC, you're not that protected.

 A lot of the quoting of rates depends on your specific situation.  Title seasoning, loan to value, lease amount (and whether it's currently leased) and the guarantor's credit score are the primary driving factors.

I quoted someone 7.125% last week and I quoted someone else 12% for similar properties, but they had very different circumstances.

You can go 100% for the acquisition and rehab as long as you have experience in the last 3 years and you're not more than 70% of the ARV.

That money is not cheap, but it's out there.

We have funds for acquisition and rehab up to 80% loan to cost.

You may say, so what, lots of folks have that.  Here are the nuances.

It's Interest Only

1 year with extensions if necessary, but I would hope not.

Down to a 650 credit score at 10.74%

Lender charges 2 points that CAN BE DEFERRED UNTIL THE PROPERTY IS SOLD.

US Commercial only charges 2 points  and a $450 processing fee.

Rate can be bought down (but why would you) with such a short term.

First time investors are okay with a 10% LTV reduction

NO SEASONING ON DOWN PAYMENT FUNDS

No escrows required

It seems that the only real deals out there right now are properties in distress.  Go get one, fix it up and sell it at these inflated costs.

Let's get busy.  We originate in 36 states.  Yours could be one of them.

Stephanie

202-491-6461

@Nessa Lyn

I wanted to go a little deeper for you on why I said to go with the FHA loan first.

Underwriters who do conventional or FHA underwriting will pull what's called a "drive report". The drive report is like a background check and if you've bought anything using a DSCR loan, whether it's under and LLC or not, the drive report MAY find it and you'll have to disclose the purchase of the 8 unit and subsequently qualify using the debt without the benefit of the income and, depending on your circumstances, could grenade your chances of getting the FHA property. DSCR lenders do not report to your credit report, but I've seen numerous conventional purchases blow up because other properties popped up on the drive report and because the purchases weren't seasoned enough to show up on taxes, the debt ratio was out of whack.

Structuring your purchases is very important and you have to take the necessary steps to be successful.  A good mortgage broker can walk you through it.

Stephanie

Yes, that's entirely possible if you're talking about conventional financing. If you're looking at a DSCR loan, then no. Your taxes won't come into play.

If you change jobs, you may or may not be turned down for conventional financing. If your new job is in the same line of work and it's a W2 job then maybe not, but if you're going from a W2 job to self employed or 1099, then more than likely you will. Try conventional first because the rates are definitely better, but if that doesn't work, go with a DSCR loan. That will work if your credit is good, the property isn't rural and if it cash flows.

All the best

Stephanie