Financing Problem - I bought properties too cheap and cant get financing.....

Financing, Hard Money Lenders, Private Money
1

I have several properties that I have purchased in need of refinancing. They were funded with private high interest loans and need to refinance. My problem is that they are under 30k and no bank is interested in financing them due to they are under the 50k mark and would be considered a high cost loan (illegal for NC).

Can some one help me. Looking for a wrap loan or something. Help…

Thanks in advance for all your help and advice.

FW

2

Go to a local bank and talk to them. See if you can bundle a few of the properties together on one mortgage. A mortgage for 5k has as much paperwork as one for 200k so it will be more worthwhile for the bank if you package them together. Expect to have a shorter payout on these loans and probably only go up to 70% LTV, but at least you’ll get some of your money out.

3

i went to several mortgage brokers but no luck… Went to one credit union but they seemed like they werent interested.

4

A lot of places are scared to work with investment properties now. If you hold these properties in an LLC, your options are even more scarce.

5

Forget mortgage brokers. Go to the FDIC web site http://www2.fdic.gov/idasp/main.asp

and identify all the banks in your area. This is the county you’re in and all the adjacent counties. Call them all to see if you could get a blanket loan done. It’ll be expensive, appraisals and title work on all of them.

Prepare a very professional looking financial presentation of your propertys’ performance, showing metrics that they can appreciate: cap rate, ROI, cash flow ROI, and Debt Coverage Ratio (net operating income divided by P&I). Show that you know what you’re doing, that you’re detail oriented, have a good understanding of the financials. Along with your personal financial statement, e-mail this information to those that indicate they may be able to do it. Don’t expect to use an appraisal for value unless you’ve owned it for at least 6 mths, or even 12 mths with many banks. Obviously, if you or spouse has wage income from a job, that is all the better. And a credit score of 720 or better will help the cause immensely.

Stress that you’re looking to establish a long-term relationship with a local bank.