Good Banks for BRRRR refi in Memphis, TN

[Sean Laird]

So I'm just starting out trying to do BRRRR in the Memphis, TN area. I'm doing a pretty good job of building a team but I have yet to find a loan partner for the cash-out refi. Any advice or recommendations from those experienced with this sort of investing in this area. I've noticed a lot of the buildings are older so my current bank has been reluctant to get involved.

Any help, thoughts and ideas are greatly appreciated

[Stephen Akindona]

@Nasir El Ameer makes a great point here! A cash out is very different from the delayed financing exception. You can use your own cash to buy a house renovate it, and then refi all your investment capital back out but it is not a cash out refi. If you put the renovation cost on the settlement statement you are able to use the delayed financing exception to buy and renovate and then refinance out your investment capital without any seasoning. 

For example if you purchase a property for 50k and put 10k in rehab (the 10k must be on the settlement statement) you can refinance and pull out you 60k in capital or 75% of appraised value, whichever is lower! So if this property appraised for 100k the bank will loan up to 75% but the max you will be able to pull out would be the 60k. If however you wanted to pull out the additional 15k in equity, you would be doing a true cash out refinance and that would require a 6 month- 12 month seasoning period. If you are looking for a lender that can execute a delayed financing refinance, pm I have a few references! Hope that helps!