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Old 08-06-2016, 01:11 PM
 
Location: Cary, NC
36,098 posts, read 62,911,893 times
Reputation: 35808

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So, the spam is picking up, but has me curious.
Is anyone REALLY writing stuff like this?


One example:
"Investor loans are in full swing for investors of type and all amounts!

We have lenders that are rolling out new programs in the market. If you have a deal you want us to look at give us a call as there are many ways to get a deal done for investors. More and more investors are entering the market as the values and rental income continue to climb.

We now have 30 year fixed rates at 6.75 with Stated Income and no tax returns or 4506T!

Want to go full doc? We can do loans in the 3s and low 4s

Here some of the other programs we have
* 2-4 units owner occupied now available under Stated Income (bullet points below)
* Hard money and bridge loans in the 7s in California and 8-10 everywhere else
* Blanket Loans to $500MM up to 75 LTV.
* Fix/Flip (1-4) with only 10 percent down and 100 percent of rehab covered by lender
* Fix/Flip (office and strip) 65 LTV and 65 of rehab costfs
* Foreign National-Domestic up to 75 LTV.
* Larger multi unit apartment complex (5+ units) rates starting in the 3.63 up to 80 LTV on purchase

I want to see whatever you have, honestly I do. With market stability, performing assets and good returns, our lenders are wanting to know what you need and are designing programs to help investors."
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Old 08-07-2016, 05:30 AM
 
Location: Southern California
4,453 posts, read 5,750,957 times
Reputation: 2220
Quote:
Originally Posted by MikeJaquish View Post
So, the spam is picking up, but has me curious.
Is anyone REALLY writing stuff like this?


One example:
"Investor loans are in full swing for investors of type and all amounts!

We have lenders that are rolling out new programs in the market. If you have a deal you want us to look at give us a call as there are many ways to get a deal done for investors. More and more investors are entering the market as the values and rental income continue to climb.

We now have 30 year fixed rates at 6.75 with Stated Income and no tax returns or 4506T!

Want to go full doc? We can do loans in the 3s and low 4s

Here some of the other programs we have
* 2-4 units owner occupied now available under Stated Income (bullet points below)
* Hard money and bridge loans in the 7s in California and 8-10 everywhere else
* Blanket Loans to $500MM up to 75 LTV.
* Fix/Flip (1-4) with only 10 percent down and 100 percent of rehab covered by lender
* Fix/Flip (office and strip) 65 LTV and 65 of rehab costfs
* Foreign National-Domestic up to 75 LTV.
* Larger multi unit apartment complex (5+ units) rates starting in the 3.63 up to 80 LTV on purchase

I want to see whatever you have, honestly I do. With market stability, performing assets and good returns, our lenders are wanting to know what you need and are designing programs to help investors."
Yes, but notice the big difference, it is investors for investors. I've see I/O products for them too. They care more about the asset then other things.
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Old 08-07-2016, 05:54 AM
 
Location: Cary, NC
36,098 posts, read 62,911,893 times
Reputation: 35808
Quote:
Originally Posted by thelopez2 View Post
Yes, but notice the big difference, it is investors for investors. I've see I/O products for them too. They care more about the asset then other things.
"I/O?"

They have me intrigued because I would like to do a couple of small projects and fund through my LLC, which is hard to accomplish. No Doc and Stated stand out to me.
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Old 08-07-2016, 06:16 AM
 
Location: Southern California
4,453 posts, read 5,750,957 times
Reputation: 2220
Interest only.

I saw a 65 LTV 6 month IO loan, used for acquisition construction and refinance, stuff you couldn't get away with today on owner occupied due to all the consumer protection.

They care about the assets LTV and loan servicing similar to how commercial loans are looked at. One investor/lender I talk to, only wanted to deal with higher value deals in California, they didn't care about a $300,000 flip far from city but was ok with a $800,000 one. In higher value areas, the cost is in the land and not the structure. With a low LTV, in theory the loan is lower than the cost of the land itself so the lender is at low risk, even just bulldoze it down.
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Old 08-07-2016, 06:25 AM
 
Location: Cary, NC
36,098 posts, read 62,911,893 times
Reputation: 35808
Quote:
Originally Posted by thelopez2 View Post
Interest only.

I saw a 65 LTV 6 month IO loan, used for acquisition construction and refinance, stuff you couldn't get away with today on owner occupied due to all the consumer protection.

They care about the assets LTV and loan servicing similar to how commercial loans are looked at. One investor/lender I talk to, only wanted to deal with higher value deals in California, they didn't care about a $300,000 flip far from city but was ok with a $800,000 one. In higher value areas, the cost is in the land and not the structure. With a low LTV, in theory the loan is lower than the cost of the land itself so the lender is at low risk, even just bulldoze it down.
Yeah. I am the ~$300,000 flipper.
But, I guess I have to step up to the plate to see the pitch.

Thanks.
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Old 08-07-2016, 06:28 AM
 
Location: Southern California
4,453 posts, read 5,750,957 times
Reputation: 2220
If you have a loan for $100,000 at 4% but need 20k more, it might cost you a new loan and rate of 8%. Interest for the year comes out to $9600. If you do the math, you are borrowing that 20k at 28%, a lender would be very happy with a 28% second mortgage, but even more so now with the protection of being in the 1st position too.
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Old 08-07-2016, 06:38 AM
 
Location: Cary, NC
36,098 posts, read 62,911,893 times
Reputation: 35808
Quote:
Originally Posted by thelopez2 View Post
If you have a loan for $100,000 at 4% but need 20k more, it might cost you a new loan and rate of 8%. Interest for the year comes out to $9600. If you do the math, you are borrowing that 20k at 28%, a lender would be very happy with a 28% second mortgage, but even more so now with the protection of being in the 1st position too.
As a typical first-time flipper... I am looking at the round-trip cost and net expenses and proceeds as much or more than the cost of the money.
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Old 08-07-2016, 06:50 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,995,031 times
Reputation: 9382
IO is usually interest only.

What's funny is watching various underwriters in the residential industry still clinging to the ramped up guidelines, not wanting to let go as they let up. Among my counterparts, this is probably the most discussed topic, updates traded, usually for the purpose of enlightening the unaware UW. Reminds me of the cowboy that won't give up his six-shooter until he's cold and in the ground. It's killing some of these UW they no longer can require equity in the former residence turned rental.

Being portfolio has shielded me from many of these arguments (we have our own guidelines), but when we hit on an unaddressed topic, we default to Fannie. The no doc emails you are getting are the same, portfolio, with likely a default to agency (SBA) for the gray areas. The difference between your ads and us, your advertisers charge healthy rates for their niches, where our exceptions pay the same. They are most definitely for profit, where we are a non profit (and as such, only residential). Your investor is also portfolio, but with every scenario changer, keep an eye on the charges. Loan to value 75% instead of 70%? Add1/2 point. If this is a 3rd party (broker, and the 1st question you ask), your loan officer may be learning along side of you. Typically, they want to see you don't need their money to move forward. Junk fees are pricey, making you look harder at using your own money.

Typically, the most affordable means is breaking the golden rule of investing, attaching the personal residence. Only problem, this can present an issue with the amount needed, there's not enough there.

Find out how many layers between you and the end investor.
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Old 08-07-2016, 06:52 AM
 
Location: Southern California
4,453 posts, read 5,750,957 times
Reputation: 2220
Quote:
Originally Posted by MikeJaquish View Post
As a typical first-time flipper... I am looking at the round-trip cost and net expenses and proceeds as much or more than the cost of the money.
Yup, as long as you're making money If I had to borrow at 50% interest to walk away with $100,000 I'd be happy even if the lender was making higher margins than me.
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Old 02-23-2018, 08:23 PM
 
46 posts, read 39,535 times
Reputation: 73
Well there definitely has been an increase in the return of these programs. I saw this resource for stated income loans when I was helping my brother on law find financing since he is self employed. He checked it out end got connected with a lender that was able to finance his purchase. The rate was not too bad. Not what you would get if you were looking for a regular mortgage showing all of your documentation but he was happy.
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