Refinance of Recent Purchase...

Financing, Hard Money Lenders, Private Money
1

I know that I can’t get a really specific answer to this question, but I was hoping someone out there might be able to give me a general idea…

My partner and I recently (2 months ago) purchased 8 condo units in an 18 unit complex. We paid cash. They’re owned in an LLC. The numbers are currently good on the properties, and rents can easily be raised by 10% over the next year (a process we’ve already begun). We also have a deal in place to purchase another 3 units in the same complex, which would give us voting control over management, etc.
Both of us have solid W2 income, and good credit (~750). We can go full doc, which we’re assuming might be necessary.

I am interested in borrowing against these properties in the form of a blanket equity line, or fixed rate loan.

Considering these parameters (especially how recent the purchase was), does anyone have any general idea what kind of terms might be realistic at this point? (general rates, length of term, ltv?)
Thanks for any feedback.

2

This is a local bank deal all the way. You should be able to get very favorable terms on a 5 year ARM with a 20-25 year amortization. Getb all of your income and property information together and go visit a business banker at a local bank. He will add up all of your income and tell you what you qualify for. Good luck. Hope this helps.

3

Thanks Chris,

That’s exactly what I was thinking. I appreciate the help.

4

Make sure you ask for the business/commercial banker. If you get stuck speaking to a retail loan officer they’re not going to be able to help.

I’d suggest opening up the yellow pages first and calling a good 5-10 per day for several days. Just run over the brief details on the phone and see if this is close to what they can do, if so, then make your visit.

If the local banks cant help there may be some options with commercial lenders that a broker can assist you with.