Southlake based Bank OZK will provide lot loans and construction loans for our clients. They do not do first mortgages so we will act as the take out investor.
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How to handle a portfolio of NOO loans in an LLC:
Hi Mike,
Yes sir, we can do those. We underwrite them as commercial loans, so we base it on the net rental income of the property divided by the P&I. We need the resulting debt service coverage ratio to be 1.25 or higher.
We can lend up to 80% of the value as long as we get 1.25. It would be typical commercial type terms: 5 year term on a 30 year amortization. 4% is probably our floor, and we can negotiate on the origination fee.
We can do them individually or we can put them all in one portfolio, or multiple portfolios, however he prefers.
We can generally lend on properties in other states as long as the borrower is local. If the second home in Florida is not leased, we’ll look at like he’s leasing it from his LLC, or if uses it as an Airbnb when he’s away, we’ll underwrite it that way.
Thank you, for thinking of me!
Cody Montandon
VP Commercial Banker
198 East Round Grove Road, Lewisville, TX 75067
O: 469-322-6408 | M:214-425-6715 | F: 817-562-5181 / 817-912-4201 NMLS# 904359
[email protected] ozk.com