Having a Hard Time Getting Refi Loan

yes we would love to know of any other suggestions in finding a lender who would help us with this refi.

I have currently contacted a total of 17 local banks, credit unions and mortgage officers. The response has been.

" we no longer lend on investment properties due to the market"
" The amount your requesting is two low"
" Need to have a seasoning period of 6 months to a year" ( this was expected since i was looking for banks who lend with no seasoning period)
" take out a collateral loan on a vehicle you own" ( which is funny cause isn't the property considered collateral?)

I am planning on contacting more banks to day but running out of options. Any ideas or suggestions would help

thanks

I am doing deals in KC and banks are not the trouble. The trouble is were You buy the homes. If it is in certain zip codes the banks will not work with you. This is the reason you do your home work on the front end. A lot of investors are buying what they think is a good deal in KC, but in the end its not working out. KEY WORD home work.

RANDY

We did our homework before purchasing this property. I had several investors who said they purchase in that area only to find out that they changed their minds. I have active comps for the area with in the last 3 months people purchased homes in worse condition than ours for way more that what we purchased ours.

The banks I spoke with didn't have a problem with the area they had a problem with the amount. If we could take out more than what we wanted then they would be fine with it.

I have a meeting today with 2 landlords who invest in that area. Hopefully it will turn into a better option.

Regardless of the area there are people actively buying up that area. There are investors actively renting in that area, and there are several who are doing rent to own as well. I see all over where this home is located lots of newly rehabbed homes. If people are doing that then there is someone who will be interested in what we have to offer.

I know there is a way. We just wanted to get some more ideas and other options from the dean family.

If both of you would PM me the info and price I might be interested. I do pay cash. don't forget address and zip. Pitchers if you have them.

RANDY

l

you have the option right in your lap !! the lease option !! if you only have 4k into this and have a lease option tennant then unload it now for a down payment say 5000 and find out what they can afford for a mnthly payment say 500 and give them a 1-2 or 4-5 option to buy for say 60 as you msay it is worth.this is a tremendous opportunity cause u only have 4 k into it .the down pymnt from them will pay you back your investment immediately and u will begin cash flow NOW and u will have an enormous profit in a couple yrs or less depending on how u structure.if they even give u a down pymnt of 2000 then this is still a great opportunity for u.u didnt mention the repairs it needs .did u mean 4k it also needs for essentials?? negotiate the final price to suite the buyer by telling them they have to do the repairs so adjust the final in connection to the repair needed.
keep looking for the bank to refi as u may need it for the next deal and or this one.dont give up keep looking ,you will find one.
hope this gets your mind triggered !!
good luck
jay

Jay,

Thank you so much for the inspiration! You really pushed us in the right direction. We just seemed to think this would be a fast cash deal since that was the goal at first, so I think we are getting a little too impatient here. Seems to me like you are right, its more of a cash flow property.

We are still going to try to get it refinanced for some quick cash since this became my partners full time job. But in the mean time we should just keep on looking for some other deals.

The estimated repairs on the house are 15k to fix everything. But about 4k to fix ONLY the essentials like electric, water, heating, mold etc. Still not sure if we are going to repair it all, or just the essentials.

The we already told one of the potential lease option buyers that we would charge 2000 down and 300 a month. So if we can get more out of this then how do we undo that? LOL

if this was my deal i would say ok i will take the 2000 down but need a little more per mnth say 350 or 400.just to get more out.if you dont ask you wont get !!! the end final price is where you will really make if they come through with the option to buy.if you sink more into the repair yourself then now u have even more to try and get back and maybe it wont sell right off ...then what ??? i say let them do the repairs....have this in the contract....and give them the deal you told them u would or say ther is not a way you can structure this one deal on the terms we communicated on BUT i will find you another deal to suite your figures,then go find it ...
jay

Be sure to pre qualify you tenant/buyer in advance. If you want to cash out as soon as possible it makes no sense to put someone in there that won't be able to actually get a loan and buy the place. A broker usually charges around $50.00 to do this.

Good Luck,
Michael Mangham
MD Home Acquisitions LLC

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomea.com Seller site
http://www,mdhacq.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird dog, house hunter, door knocker site
http://www.mdtfcam.com Transactional fund site

First of all I agree with Mike above. Prequal you end buyer, the broker will tell you how much they can qualify for and more importantly if they will qualify. They may need to repair their credit a little more or they may not be even be close to qualifying for a mortgage. That is when you will make your decision on doing a deal with them or not.
As far as the refi & repairs go, You have to visit every bank and credit union you can find. Have a plan A and B. I try to turn the table on them and tell them how much their bank will benefit from working with me. I have gotten as far as a conference call with the vp and president. I didnt like the offer at the end but It is still in my back pocket if I want it. The best is to do like Randy does and physically speak to them in person. I cant do that unfortunately because i am investing in another State. Laura J did it and walked away doing her happy dance
The only other option I can think of is if your desperate for the money, wholesale it like you were going to.

good luck either way you go.

Richie

Thank you guys for helping us keep in mind that we do in fact have people in line to purchase. Although it may not be all upfront it is actually more in the end.

Thank you and this is why we love this site so much you guys are so helpful:)
Thanks again Randy, B.C.,michael, and jbtoggs.

How does a non season refi work? From what I understand you don't need to wait to take the equity out of the home. What paper work do you need to do a refi. for ex. can some who is taking over payments do a refi. on said property? Also can someone doing a lease option do a refi?