All Forum Posts by: Timothy Maloney

@Keiko Harada I don't see an issue. Your LLC will be the "borrower" and you will sign a personal guarantee. Of course if you want a NON RECOURSE loan you can keep it all in the LLC and just pull a bit less $$$ out.

Good luck!

@Account Closed  You can pull 60% even with poor credit.  The rates might be in the 7's/8's for a 15-20 year fixed.   So long as the minimum property value is 100k you can avoid hard money.

Good Luck!

@Nick Zias Yes, this is possible. You can borrow 80% of purchase + 100% of rehab budget in NY state. The costs run 3-4 points + 8-12% interest only payments depending on your experience/credit/property. Once you complete the project you can refinance (without seasoning) for the purchase price + actual repairs done. If you wait 6-12 months you could refi at the market value (ARV).

@Nick Schroeder Fantastic work!    I always ask for before and after photo/video for my marketing but rarely get them.   I wish I funded this flip!!

@Ryan Sanders  The only stiplulation you listed that may limit your access to capital is the <less than 10% down> caveat.    Although I see some lenders a bit more west of you doing 100% of purchase , 100% of rehab loans they are typically in CA and reserved for experienced flippers.

The best I've funded this year is 90% purchase 90% of rehab (For borrowers with low 600's fico, 4-5 Points close, first time flipper, and rates in the 10s.  

Good luck Ryan!

@Warwick Ferguson If you have a US business you can leverage your portfolio with debt. It's tricky to finance non US citizens but possible through an LLC. If you do have a social security number and credit profile you could borrow up to 90% of the purchase + 90% of the rehab for the properties you won't keep. I wish you good luck mate! Welcome to BP & Cheers!

Welcome @Jason Yun!   Good luck!

@Andrew Reeve I get the proof of fund request a great deal. A true POF letter is the same as a loan committment letter and not normally possible with having first been approved.

I offer a pre-approval that *normally* satisfies most seller's need for a solid buyer but if they want a true "cash buyer" even a POF from a lender may not suffice.

If you do a couple deals with the same lender they may offer a POF on future deals.

If you borrow in an LLC/Corp the DTI residential lenders care about becomes far less meaningful. In true commercial real estate lending we are far more concerned with an individual PROPERTY's ability to service the debt than that the sponsor (borrower). Sure, the rates are higher, but you could conceivably have 200 properties financed.

Good luck - I love to see the expansion talk for your future!!

I'm with @Brian Moore.   I've never heard of it.   I *guess* if you used Hard money for purchase and then improved upon the property some lenders may waive seasoning and refi at appraised value (thereby allowing you to use sweat equity) but on a straight purchase??     Very odd - but then again commercial real estate lending is the Wild West and new things come up all the time.