[evolusd]

Delaware LLC is fine. The reason we prefer LLCs is most of our deals are here in California where the ‘single-action rule’ can apply. If you lend to an individual or trust and take real property as collateral, the Bank may only be able to go after one or the other (borrower or collateral) if default occurs. Typically, the real property is held in an LLC and the individual or trust provides a personal guaranty of the loan to the LLC.

I can’t speak to lending against SFRs…there are much more consumer protection regulations in that arena, so our group sticks to 5+ multi-family financing (as well as all other types of commercial property and business lending). We have a traditional mortgage group that does SFR financing for primary residences and rentals.

[evolusd]

I can speak to financing of apartment properties, as we do quite a bit here at the Bank where I work. Most banks underwrite to the cash flow of the property – they’ll want to see the appraiser’s estimate of NOI be sufficient to cover the required P&I payment with a 30Y amortization by a margin of at least 1.25x. This typically limits your LTV to 60-70% depending on the cap rate of the property. A personal guaranty is almost always required, and holding the property in a single-asset LLC is preferred.

Back in the loosey goosey days banks were going much more aggressive, but they’ve all imploded now and credit is much tighter, at least from my POV.

[evolusd]

I can speak to financing of apartment properties, as we do quite a bit here at the Bank where I work. Most banks underwrite to the cash flow of the property – they’ll want to see the appraiser’s estimate of NOI be sufficient to cover the required P&I payment with a 30Y amortization by a margin of at least 1.25x. This typically limits your LTV to 60-70% depending on the cap rate of the property. A personal guaranty is almost always required, and holding the property in a single-asset LLC is preferred.

Back in the loosey goosey days banks were going much more aggressive, but they’ve all imploded now and credit is much tighter, at least from my POV.

[evolusd]

I can speak to financing of apartment properties, as we do quite a bit here at the Bank where I work. Most banks underwrite to the cash flow of the property – they’ll want to see the appraiser’s estimate of NOI be sufficient to cover the required P&I payment with a 30Y amortization by a margin of at least 1.25x. This typically limits your LTV to 60-70% depending on the cap rate of the property. A personal guaranty is almost always required, and holding the property in a single-asset LLC is preferred.

Back in the loosey goosey days banks were going much more aggressive, but they’ve all imploded now and credit is much tighter, at least from my POV.

[evolusd]

I can speak to financing of apartment properties, as we do quite a bit here at the Bank where I work. Most banks underwrite to the cash flow of the property – they’ll want to see the appraiser’s estimate of NOI be sufficient to cover the required P&I payment with a 30Y amortization by a margin of at least 1.25x. This typically limits your LTV to 60-70% depending on the cap rate of the property. A personal guaranty is almost always required, and holding the property in a single-asset LLC is preferred.

Back in the loosey goosey days banks were going much more aggressive, but they’ve all imploded now and credit is much tighter, at least from my POV.

[evolusd]

I can speak to financing of apartment properties, as we do quite a bit here at the Bank where I work. Most banks underwrite to the cash flow of the property – they’ll want to see the appraiser’s estimate of NOI be sufficient to cover the required P&I payment with a 30Y amortization by a margin of at least 1.25x. This typically limits your LTV to 60-70% depending on the cap rate of the property. A personal guaranty is almost always required, and holding the property in a single-asset LLC is preferred.

Back in the loosey goosey days banks were going much more aggressive, but they’ve all imploded now and credit is much tighter, at least from my POV.

[evolusd]

Love it. I watched one recently where the people had to pony up $60k at the closing to make the lender whole and avoid a hit to their credit. Finally, HGTV has at least one show that reflects reality.

One of the most annoying parts of HGTV shows is how they bring in a realtor to determine the pre and post value after making some improvements and they say ‘you just made $25,000!!!’.

[evolusd]

Love it. I watched one recently where the people had to pony up $60k at the closing to make the lender whole and avoid a hit to their credit. Finally, HGTV has at least one show that reflects reality.

One of the most annoying parts of HGTV shows is how they bring in a realtor to determine the pre and post value after making some improvements and they say ‘you just made $25,000!!!’.

[evolusd]

Love it. I watched one recently where the people had to pony up $60k at the closing to make the lender whole and avoid a hit to their credit. Finally, HGTV has at least one show that reflects reality.

One of the most annoying parts of HGTV shows is how they bring in a realtor to determine the pre and post value after making some improvements and they say ‘you just made $25,000!!!’.

[evolusd]

Love it. I watched one recently where the people had to pony up $60k at the closing to make the lender whole and avoid a hit to their credit. Finally, HGTV has at least one show that reflects reality.

One of the most annoying parts of HGTV shows is how they bring in a realtor to determine the pre and post value after making some improvements and they say ‘you just made $25,000!!!’.

[evolusd]

Love it. I watched one recently where the people had to pony up $60k at the closing to make the lender whole and avoid a hit to their credit. Finally, HGTV has at least one show that reflects reality.

One of the most annoying parts of HGTV shows is how they bring in a realtor to determine the pre and post value after making some improvements and they say ‘you just made $25,000!!!’.

[evolusd]

I saw the UT article. I’m just glad they pointed out that he (Larry Yun) COMPLETELY missed the bubble.

[evolusd]

I saw the UT article. I’m just glad they pointed out that he (Larry Yun) COMPLETELY missed the bubble.

[evolusd]

I saw the UT article. I’m just glad they pointed out that he (Larry Yun) COMPLETELY missed the bubble.

[evolusd]

I saw the UT article. I’m just glad they pointed out that he (Larry Yun) COMPLETELY missed the bubble.

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