All Forum Posts by: Zach Edelman
Zach Edelman has started 19 posts and replied 1227 times.
Post: Hard money lender
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
Hard Money Lenders - from what I've seen, reflect the lack of experience more in the leverage than the rate. What leverage are you being offered?
Post: Is Rental Arbitrage Viable in Clearwater/St. Pete? Looking for Insights & Networking
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
What is your US citizenship status, if any (I.e US Citizen, Permanent Resident Alien, Non Permanent Resident Alien)? That will be a big factor with regards to whether you can qualify for a DSCR loan or not.
Quote from @Danny Barnhart:
I am looking for an investor that does DSCR loans. Please contact me.
Bigger Pockets has a list of recommended DSCR lenders. Should start there.
Post: LLPAs for Vacation Home Loans
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
Quote from @Jonathan Snider:
I have been saving up for a while to purchase my first STR. I did some rough calculations and figured I should be ready to purchase in the first half of 2025. I had a meeting with a lender about getting a second home loan. He told me about LLPAs and presented me with a lot of option related to them. The way I understand it, I would have to pay 4.125% of the purchase price in LLPAs if I want to get the normal interest rates. If I don't to that, then my interest rate goes up.
This is completely new to me, and it's a bit of a bummer since that would delay me getting my first STR that I have been saving up to get for a long time. What is the best path forward?
1. Don't pay LLPAs and take the high interest rate?
2. Save up long enough to pay the LLPAs to get a better interest rate
3. Something between #1 and #2
I know the answer is probably something like "however the numbers work best", but I'm looking for general guidance. How have you handled this situation?
How long do you intend to occupy the property? Also, what is the rate if you buy-out/down all the LLPAs?
Post: 85% LTV Loan for one property with 3 STRs in Texas
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
I could likely do this at 80% LTV. STR specialist lender. Would love to chat/see if we can help!
Post: Hey everyone! Has anyone here gone through the application process for DSCR loans?
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
Do you have a potential DSCR scenario that you're looking to apply for?
Post: Building STR and recovering cash
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
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.
Post: 85% ltv DSCR
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
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.
Post: DSCR lending expert
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
Yes. BP Has a list also of recommended DSCR lenders!
Post: DCSR vs Conventional with transfer tax
- Lender
- Austin, TX
- Posts 1,263
- Votes 1,284
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!