New Investor - ????'s

[crusadercommercial]

No catch,

It's a unique product.
Requires 700+ FICO
Must be 2 MM or less
Must be 20 Units or more
can choose 80/20 or 90/10 (the only difference is the rate on the second. 90/10 will have 9.99 on the second - 80/20 will have closer to 9.25 on second. In either case first is set based upon strength of financials etc.
Interest rates are 7.5 - 7.99 on 1st and 9.25 - 9.99 on 2nd
Must have 6 months P.I.T.I. (negotiable depending on strength of the deal)

Those are the basic parameters of the deal.

Jeff

[4EEM]

Can a line of credit be used to satisfy the Reserves requirement?

[crusadercommercial]

I believe that the funds must be in the bank for VOD, however, I do not believe the funds are sourced.

Jeff

[4EEM]

Ok...I've got a client and we have a property in contract.  30 Units.  $625K purchase price. $113k gross annual income.  Tenant pays all utilities.... Property cash flows more than enough. 29 units rented out of 30.  Has over 100K in reserves.  760 FICO.

[Prashant]

crusadercommercial,
You seem to have an excellent program!

[Prashant]

crusadercommercial,
When doing such a deal (20+ units and below 2M), what is the DSCR?
Would you consider my personal income in calculating the DSCR? Thanks.

[crusadercommercial]

Hi Prashant,

I don't want to make this a sales forum.
Please either email me or go to my website and enter loan inquiry.
I'll be glad to answer all of your questions there.

I can answer the question on dscr though..

DSCR can only be counted for the property. That is the whole purpose of DSCR... to see if the property has sufficient cash flow.
Keep in mind that a lending institution is always thinking in terms of what happens if you default and they have to take back a property. They want to make sure that it is resellable on it's own merits.

However, your income can be considered when determining ability to pay and debt to income ratios etc.

Jeff

Jeff

[Baldy_511]

W,

Your rate on the first will remain the same whether you put down 20% or borrow the 20% as a second lien. If you are going full doc on a conventional conforming loan you are looking at 6.75 to 7%, and on a stated anywhere from 7.5 7.875%. Hope this helps. Also, thanks for the kind words in your previous posting. Also, I assume that you are talking about 1-4 Unit complexes, because I don't believe 80/20's are offered on commercial properties.