Refinance on rental property in Indiana

Call all the local and community banks in Indiana and see if you can find a bank that will do a no seasoning refinance. I'm sure you can.

Best,

Thank you very much, cashinvestor!

We've tried that without success, but that was a while ago. We'll try that again. Thank you very much for your input. I appreciate it!!

Naoko:)

Getting a cash out refinance on an investment property can be a real challenge. If you cannot find someone to do it, consider trying to get a HELOC. This will accomplish about the same thing though the interest rate is not as attractive.

Thank you very much, campbellsimon!

We haven't thought about HELOC on rental properties, but that might be a good option. We'll keep that in mind.

Thank you for your input. I appreciate it!!

Naoko:)

I don't see how you could get scammed by trying to refinance a property... anyway, contact small banks in your area and credit unions.
I have refinanced (cash out) numerous rental properties out of state; you just have to find the right bank(s) for you.
If you're planning of keeping the properties, you could ask if they could 'bunch' the properties into one loan, instead of separate loans.

Thank you very much, Valerie!

About two years ago, we called all the banks we could find in Indiana trying to do a refinance, but we couldn't find anyone. Then, we found a private funding company who was going to do the refi for us. We even found this company through REI club in Indianapolis. But they only took the application fee and didn't do what they promised to do. They got caught though and sentenced Guilty just a weeks ago. We might get a small portion of the application fee back, but we have to wait and see.

Anyway, I wanted to ask you if you called the banks in the area where you reside or where the properties are. We haven't tried the banks in Washington state where we live yet.

Thank you very much for your input. I appreciate it!!

Naoko:)

Another thought - definitely call the bank where you're depositing the rent checks from those 5 rental properties. That way they can easily see the income coming in, and hopefully you have a good relationship with them.

Good luck!

- Tom

Thank you very much, Tom!

That's a good point! I didn't think about that. We have a property management company in Indiana and they send the money to our credit union in Washington. I'm not sure if they do the refinance on the property out of state, but it's worth a try.

Thank you very much for your input. I appreciate it!

Naoko:)

You're welcome Naoko!

- Tom

Hello Naoko,

I've been investing in real estate for over 10 years and have built up a large portfolio of single family rental homes. I'm a lender, also. Most lenders sell loans to Fannie Mae and Freddie Mac and therefore follow the rules of the investor they sell too. In general, most lenders can not sell loans to the investor if the client owns 4 or more properties. This may be a reason that you have a hard time finding a lender to refinance your property. My advice to you is find a asset based lender, as most do not care how many properties you own. There are many other benefits, also. Please let me know if you would like further advise.

Best of luck!

I did my refinances with banks out of state. I did learn that banks like to hear that you're taking the cash out to mostly remodel and/or do upgrades for the property that you're refinancing

Wow! yes, I have heard of private funding companies that do refis... and I stay away from them! I only do my refis with banks (small banks). When you interview them ask if they have a limit on the number of loans or the aggregate amount.
Also, it helps to have a 'healthy' amount of funds in your accounts before you apply for a loan. I know, why would you borrow money if you have money... but that's just the way banks do business... they like to lend you money when you don't need it