Cash Out Refinance Advice

[Howard Montaque]

I have 3 properties, just finished remodeling and ready to move into BRRRR. It seems very hard to pick the right lender for my cash out refinance. How do you do it? LTV, points, and interest I understand, but there has to be more to look out for, and questions to ask. I am ready to get this going! Suggestions?

[Jerry Padilla]

@Howard Montaque

Most important thing to ask is if they work primarily with investors and if they do cash out refinances frequently?

There can be obstacles that the loan officer needs to be experienced with and know the investor guidelines well.

Challenges I frequently see, or have investors come to me about when working with someone inexperienced;

-Seasoning Requirements - If you are looking to cash out at the 6 month mark - you can start the process prior to 6 months and close right after you hit 6 months.

-Appraisals can be a challenge. You need to let the appraiser know all the improvements that you have made to the property to force appreciation in that short period of time. If the appraisal comes in lower than expected - how to challenge the appraisal.

-Rental Income - Considering rental income when DTI's become an issue. You can consider rental income at 75% that is not yet reflected on tax returns.

Delayed Financing is done prior to 6 months and only if you paid cash for the property. If this is what you are looking for I would be glad to post more info on this subject.