Refi out of hard money

Financing, Hard Money Lenders, Private Money
1

Can someone advise how I can refinance out of hard money on a rehab with the four property limit if I can’t sell the property to an end buyer?
Porkchop

2

Talk to a local bank or credit union. Put together a business plan and present it to the commercial loan officer. That is going to be your best option.

3

Might want to consider blanket loan for all 4 properties

4

Try Private Money too. If their is plenty of equity and solid cashflow then you can offer 8-12% return with no points.

5

Thanks for the replies guys. I’ll look into the commercial loan option in order to keep buying.

6

The way I read your post is that someone has a four property limit thats causing you a refinance problem. Who is that, the lender, state lending laws or ?. If its a problem maybe you should form an LLC and put your properties in it.
donrock

7

What I was saying was that I have over 4 mortgages in my name on investment properties. In order to purchase new properties in my name, I would need to get these off my credit report as so the lenders won’t see them. I guess a commercial loan would solve the problem, I just haven’t talked to any lenders yet. I have an LLC that I pay the mortgages through, however I formed it after I purchased the properties.

8

When I do a rehab and want to hold for a while instead of sell, I need to refi out of hard money to a conventional 30yr.

9

Conventional lenders have a limit of 4 financed properties. Local banks and commercial lenders can do commercial loans not sold off into the secondary markets, therefore usually no restrictions. You should consult with a professional who knows these makets and can get you in touch with the right contacts.

10

I heard from my mortgage broker today that the limit has just been raised to 5.

Furnishedowner

11

dont see that on Fannie or Freddies sites.

can you please ask him where this info came from.

thanks

12

I am going with Ben on this one. The property limit is still at 4. I just checked the efannie mae website as well as the freddie mac website and neither of them have released a mortgagee letter stating that the limit has been raised.

13

Listen to Chris and Ben. Local banks and credit unions is where I am taking a ton of buyers to AND they will still get creative for re-fi’s. They are more flexible, can carry loans in house, and establishing a relationship for future deals is vital in this market. My business would be sunk without local lenders.

Nate-WI