Finance

[Tony Sessa]

If I borrow money from a private investor for down payment and rehab cost on a property and use a conventional loan to finance the rest, how soon after can I refinance the property?

[Karen Schimpf]

@Tony Sessa you will not be able to get conventional financing when you buy because a commercial lender will not allow to 100%+ financing. To purchase you are talking about is private money. Private money will allow rehab cost rolled into the loan. The private money lender will still want to see your own money in the down payment, ie skin in the game. The loan to value on a refinance can be 75% to 80% LTV on the ARV on apartments. If you are looking for cash out the, loan to value will drop and the rates will be higher. As far as how soon you can refinance, the typical lender would like 24 months on commercial properties. There are some commercial lenders that will allow 12 months but the rates will be higher. Commercial properties are 5+ units on apartments, office, industrial, retail etc.