All Forum Posts by: Trevor F.
Trevor F. has started 8 posts and replied 11 times.
Post: Cash Out Refinance Commercial Condo
- Posts 12
- Votes 11
Hello All,
Does anyone know a lender that will cash out refinance commercial condo that was recently purchased for $340k or another commercial building for $600k.
It seems that at these price points there are no commercial lenders. SBA loans will not cashout refinance. Lending seems tough under 1 million purchase price.
Quote from @Ko Kashiwagi:
Hi Trevor, what's the loan amount you're requesting and Is it one office unit? Programs (light-doc, full-doc) will depend highly on those two.
I am looking for a commercial lender for a small office building in Houston. It would be owner occupant and i am trying to do non sba. I have another sba loan with a commercial property and the process was intensive plus lots of collateral. If you are a broker please reach out.
Assessments are far more than 2 percent of actual value market value on some of these. If anyone has any insight into Lucas County would be helpful.
Hi Everyone,
I own many single family rentals in toledo and i have never tried to challenge the tax assessment. Is it worth while to do? Does anyone know any attorneys or anybody that can do this in Lucas County Ohio where its cost effective.
Post: Water Leak $4000 Bill
- Posts 12
- Votes 11
I had a huge water leak that occurred at one of my rental properties leading to a little of $4000 owed to the water company. I fixed the issue and stopped the leakage. Is anyone familiar with the process in Ohio for trying to get a credit from the water company? Is it even possible? This occurred in Toledo.
I have this cheap rental property where certain small pieces of tiles are missing. I dont have the original tiles and i dont want to spend the money replacing all the tiles when they are perfectly fine.
I need this to pass a section 8 inspection so how can i fix this on the cheap? See photos.
I have this unique house that i bought well below ARV so i have some budget to fix it up. Unsure how to update the exterior or if i should even attempt it. Also has a galley kitchen. Ive attached some photos. If anyone has worked on these types of homes or could point me to some successful redesigns.
I am in a very cheap market where prices dont get very high. I can spend around 50k on rehab and my contractors are more than reasonable. Will be a buy and hold rental and i will be able to refinance all my money very easily.
Post: 80% Cashout in 2022?
- Posts 12
- Votes 11
Hi Everyone,
Are there lenders (non qm/llc) doing 80% cashout refinances on single family nowadays? I know there were some last year but it seems they are tightening their LTVs.
Post: Financing for Multiple 50k Properties
- Posts 12
- Votes 11
Originally posted by @Julee Felsman:
@Trevor F. I would probably try to find a local bank that will finance them, in bulk, using a commercial loan. I've always called a mortgage secured to more than one property a "blanket" mortgage.
I'm a residential lender, so I also want to comment on this part of your initial post:
I don't want to use my conventional slots.
When financing a second home or investment property conventional conforming (Fannie/Freddie) guidelines allow you to have up to 10 financed 1- to 4-unit residential properties. Under this guideline, lenders tally properties, not loans (and not doors). Let's say you own your home with a mortgage and package up 9 single-family rentals under one commercial loan -- you may only have 2 loans, but you have 10 financed residential properties.
If you want to preserve your conventional conforming loans for other transactions, I would suggest (if you've not already) forming an LLC, transferring ownership to the LLC, sign for the new commercial blanket mortgage as a member of the LLC.
A really finnicky underwriter might read the promissory note and, if you are personally obligated on the loan, still count the properties as part of your 10 max. In the real world, I've not seen underwriters split hairs in that way.
As added insurance, I would recommend filing a separate tax return (probably a 1065 partnership return) for the LLC, even if it's a single-member and not technically required to file a tax return. You want to create as much of a separation between you and the LLC as possible.
When you apply for another residential loan for a rental or second home, you'll be able to show that the properties are owned by an LLC with financing in the name of the LLC and an underwriter should excluded from your 10 loan limit.
You can read up on the actual guidelines HERE if you want further clarification.
Good luck with your search for a good lending source!
Is there a benefit in having the properties mortgaged with conventional financing and then going to a commercial lender for a blanket loan? Besides the conventional loan limit problem i thought i could avoid paying fees twice by buying cash and eventually finding the blanket loan for the multiple properties. I suppose the difference would be a refinance vs a cash out refinance but I don't know if that is a significant difference.