All Forum Posts by: Aaron Pfeffer

Lending One is a fine national hard money lender, but I would also source a few local HMLs in your neck of the woods and price everyone out, as well as see what leverage they will offer you (purchase money + rehab money) and how they all operate. Check out Scotsmans Guide to find said lenders: https://www.scotsmanguide.com/...

Congrats on reaching the level and use that leverage wisely!

@Bernadeau C. I'm not sure what you mean by "support." I try and support all members here on BP with whatever they may need and hopefully I can help with info. But as for lending itself, I am restricted to just California.

Yep. 15% down for an owner occupied duplex as @Wayne Brooks said. 25% down as investment property.

Yes, I work at a direct lender here in Southern California, and we can accommodate a simultaneous HELOC with our first lien mortgage on an investment property. It's a good alternative to a cash out refinance on an investment property, especially if you are running up against conforming/high balance conforming loan limits. The fees for the HELOC itself are very low (in my opinion anyway). The fee to refinance the first mortgage to then accommodate the simultaneous HELOC you are getting will be higher than a standard refinance for sure.

Not about to start throwing out names here. What I can tell you is that a private money/hard money broker who has facilitated funding on a significant number of ADU projects in the past 24 months...I'm seeing what the developers are spending on PPSQFT between 500 to 1200. I like your point about the price per can going down the larger the pack, and I will also acquiesce on the fact that many of the projects I speak of are inclusive of rehab on existing structures (putting more money into the GCs pocket getting to run the remodels as well). Still...I said there are plenty of good GCs out there in the $150/Sq Ft "range." Meaning...200 Sq Ft is the highest anyone should be paying, so it's your job as an investor to lower that cost. Whether it be an additional $20-50 per Sq Ft is on you and is doable. Especially since you're assuming the GC is handling architecture and engineering, which I did not assume. Either way, I'm not saying the cost savings should be half or more. I'm saying $200/Sq Ft is the highest anyone should be paying. Basically...retail. Our entire mantra as REIs is to never pay retail. And there are wholesale priced GC's out there in Los Angeles county who would do a 550 Sq Ft ADU for around $150/Sq Ft and do it well.

My man @Paul Dashevsky

Always nice when you pop up in my life every few years...ever eager to keep me on my toes! Love the website by the way. 

If you've never subbed a construction job yourself then doing something ground up might not be best place to start (remodel of something existing is a better starting place). But at the same time, paying a contractor nearly 200/Ft for a one bedroom ADU seems rather pricey. Plenty of good GC's out there in the 150/Ft range who would deliver you a quality product.

Yes. I am now doing convention mortgages again here in Los Angeles, CA as direct lender and that investment quote is very much credible. Assuming the 50% LTV you say and a great FICO, 43% or less DTI, Verified Documentation and not exceeding Conforming Loan Amount, 3.125% no cost is doable.

You can absolutely cash back out as long as you meet certain seasoning, credit, DTI, LTV, and document requirements. Fannie doesn't want to buy that paper at moment, but Freddie will. I'd be curious to know your credit union's policies on selling their paper to the secondary market or keeping it in house on portfolio, but that may be your issue right there.

@Aki Wang

Who did your hard money?