All Forum Posts by: Zach Edelman

 How long do you intend to occupy the property? Also, what is the rate if you buy-out/down all the LLPAs?

I could likely do this at 80% LTV. STR specialist lender. Would love to chat/see if we can help!

Do you have a potential DSCR scenario that you're looking to apply for?

How would revenue break even in option #1? You are still exiting with a refinance and thus the terms wouldn't change on the exit whether you are buying in cash and then refinancing versus doing a construction loan and then refinancing. Weirdly, you may actually be able to get better terms and/or more LTV on the refinance if there is debt on the property as lenders have rules for max cash in hand (max proceeds you get at closing) for cash-out refinances.

Yep - My firm can do this for rate-term refinances and/or acquisitions, with stipulations (specifically for 85% LTV): Min DSCR of 1.25x+, Min FICO of 720+, SFRs.

Yes. BP Has a list also of recommended DSCR lenders!

Regardless of if there is a due on sale clause or not - if you are paying a 2% of property value tax twice - that's a large expense. The spread between conventional loans and DSCR loan pricing is not 2% of the property value. Spreads between conventional loans are typically 100-150 bps of the loan amount. With the transfer tax - you're being charged 2% of the property value (not the loan amount)! Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

Preaching to the choir - god please pray that servicing can be automated and improved with the emergence of AI. Fortunately - we have a good relationship with our servicers and can get frictional matters that arise rectified/resolved relatively quickly, but the frequency of said matters could certainly be reduced. Glad there is a venting board for this!

If you do a DSCR loan and vest it in an entity - you and your partner can both PG the note and it will report to neither of your credit reports, thus having no impact on your DTI!

Sounds like an easily executable deal from what you've stated but likely need more color to offer path forward, terms, etc. Are there any more details on the scenario you can share?