On the show today we have… Reinventing the 30-Yr Rental Loan with Nghi Le of Certain Lending!
Listen on: Apple Podcasts | Stitcher | Spotify
Show Links:
– Certain Lending – Website
– teamnghi@certainlending.com or call 206-237-0305
Show notes for Reinventing the 30-Yr Rental Loan with Nghi Le of Certain Lending
The Vantastic Life is…
– is in Steamboat Springs CO!
What’s going on with Certain Lending these day?
Nghi
We’ve hit recored months, and keep hitting them!
We are actually moving to a new office soon.
Julie
You guys should have a hot desk for investors to be able to stop in and work from your office.
Nghi
That’s actually a great idea. I like that and there’s a Home Depot right down the street.
Julie
Any great restaurants around there?
Nghi
Sushi Land is right there, and we want to have a Sushi Land challenge.
Julie
You should do that, and Certain Lending should sponsor it.
I’m hungry, and it alway happens when I get on the podcast.
What’s the new loan product?
Nghi
We created a new 30 year loan product. We found that the loan products were very limiting.
And most bank loans aren’t great for investors.
We wanted to create a product that’s great for investors.
Julie
What does that look like? Give us the good details.
Nghi
It’s available in WA, but we’ve done them in 12 states so far, and we can do them in 45 states.
The 30 year product, starts at 4.75% and are based on credit and LTV. We can go up to 85% LTV.
We don’t care about debt to income. It has to cash flow at a 1.1 debt service ratio. This helps in the Seattle area.
Limiting conventional loans
* Qualifying for it. It can be hard.
* If you’re trying to do the BRRR you want cash out fast. But lenders want you to wait 6 months. We will give it to you once it’s rented (up to 85% LTV).
Loan limits
* 1.1 debt service ratio
* If you’re new, we might only do 75% LTV
* Or if it’s in a bad area or resort area.
We can consider AirBnB, if it’s been operating for over a year, we can look at it. We’ve looked a adult family, room by room.
Julie
What about credit?
Nghi
Our credit starts at 660. If you’re above that we can do business. We do tap out at 740 for the best rates.
Julie
What about partners?
Nghi
As long as the partner with better credit is on title, we can use the better credit score.
Julie
Having a credit partner can be a good idea!
What are the terms?
Nghi
Let me give an example. If you have 740+ we will give you 5.75% for the rate. Or we can move down to 5.25% with more points.
Julie
Tell me the difference between 4.75% and 5.75%
Nghi
4.75 is for good credit and low LTV. Or if you want to buy it down. But for the highest leverage you’re looking in the 5%’s.
Julie
Let’s talk about scenarios.
Oh, this is a 30 year term…
Nghi
It’s a full 30 year loan. We do have a 3 year pre payment penalty. It’s just a point and $995 fee. We can lend to entities and trusts. We don’t have a limit to number of loans.
We’ll finance wholesale fees as well, or consider it.
Julie
This is like a dream come true! Christmas in Jan!
Nghi
We’ve been doing this for 3 months now.
Also, closing time frame. We can close within a week of when the appraisal comes in.
The fees include the appraisal.
Julie
Give us the story here.
Nghi
I’ll give you two!
We have a client that was using a non QM product, and they had to extend the timeline twice. We came out before the final deadline. The lender was requesting more docs. We were able to get the docs out in one business day, and they closed.
Julie
Wow, is that sustainable?
Nghi
I had to ask a team member to work overtime on that one. Anyone that you talk to at Certain Lending… we are all investors. We get it. This isn’t typical, but we were able to make it happen.
Julie
So, normally you do have to get an appraisal… what do you think the average timeline is?
Nghi
I believe that it’s about 45 days. Nothing is guaranteed. Not all appraisers will let us use their appraisal.
We have another client that did a loan with us in Oct. They’d been shopping around with bigger lenders. They came to us, and we closed 6-7 more loans with them in 4 different states. And so far it’s been a great relationship!
They came to us because we can get loans closed faster than conventional lenders.
Julie
We wanted to record this because we think it’s so important?
How can people get in touch with you? We have people all over!
Nghi
Go to CertainLending.com and submit your deal. We’ll get back to you in 24 hours. This is the easiest way.
Most of our team is in the West Coast, but we are hiring all over.
Location is not a concern for us.
If you want to talk with someone first.. email teamnghi@certainlending.com or call 206-237-0305.
Julie
If you do want to visit us up here… what are your Office Hours?
Nghi
We respond to needs. A lot of people want to talk about their strategy. We sit down at a coffee shop in Bellevue.
Julie
How do we find out about them?
Nghi
Right now, it’s not a regular schedule meetup.com/realestateatwork or email us!
And I will always post it to the Seattle Investors Club’s Facebook Page/Group. You can join from anywhere.
Julie
Anything else that you’d like to mention about what’s going on?
Nghi
I wanted to mention that we’ve been trying to do deals in FL. We do have a loan minimum, right now it’s $125k, or $156k with 85% LTV. That can be hard with lower dollar deals.
Julie
We should cover that.
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