Financing your ADU deals

Acquisition: Certain lending or conventus. Israel at certain and Brenda at conventus are both fantastic.

Additional construction financing for solar mini grid: PACE financing via Ygrene energy fund

Refinance: Corevest

Keys to remember

  1. If you’re getting construction funds, you’ll need a commercial appraisal, which takes a month. Budget that into your close of escrow period.
  2. Don’t worry about rate on acquisition since these deals take about a year.
  3. On refinance, make sure your lender calculates debt service coverage ratio based on actual interest only payment and not the fully amortizing payment. This will help you maximize your refinance loan-to-value percentage and therefore maximize the cash you can pull out of your deal at refinance so you can pull 100% if your initially invested equity out and redeploy in a new deal
  4. You’ll probably it start at 70% LTV on acquisition for your first few deals but should be able to push higher if you do 2 or 3 deals with the particular lender
  5. Spend time with the appraiser giving them all the info they need to come up with your finished value. The details around how many adus you can add, how quickly you can get permits, how you don’t necessarily need to add parking spots, and the rents you will get are generally foreign to appraisers

Text me at 520–409–8628 if you have questions and I’ll try to help





Fixing housing affordability crisis at

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Credit Memos: Are You Utilizing Them to Their Full Potential?

Total account balance Finally in October $250,827,360,000,000 BTC : U SD and BTC : EUR


This crypto free strategy beats the Dow and the Gold-index.

9 Factors That Drastically Affect Your San Diego Mortgage Rate (2020 | 2021 Update)

If you had to invest in just one stock

Going into a recession?? Here are 5 accounts you need to follow to learn how to beat it!!

$KER: Luxury Goods Stock Kering Provides a Buying Opportunity

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Preston Rutherford

Preston Rutherford

Fixing housing affordability crisis at

More from Medium

Don’t Let Fear of the Unknown Throw Shade on your Retirement

Watch Out — Washington is Coming for Your Money

What is the ‘Rat Race’, Really?

Environmental Effects of the Meat Industry