Commercial lending advise

[Erich Kuhstoss]

For all of you investors that have rentals out of state, can you give me a little advise on lending. I know bigger pockets has several listed. Do you guys use a lender that will loan commercial money nationwide or deal with different banks in each state? I use the BRRRR method so this would be refinance only. Also what is the max you guys are able to pull out on a refinance? 75%, 80%,85% ??? Currently I'm able to pull out 80% with my small local bank but have never purchased property out of state. I'm from Maryland and looking to get my feet wet in some out of state rentals. Thanks in advance

[Kyle Deutschmann]

Hey @Erich Kuhstoss, if you're BRRRR'ing 1-4 unit properties, you should be able to qualify for residential financing. With Conventional loans, you can typically go up to 75% LTV on a 1-unit cash out refi. Residential lenders that offer portfolio loans (meaning loans they hold on their portfolio/backed by private investors) generally are going up to 80% LTV on cash out refi's on 1 unit investment properties. These aren't static - they change as markets/loan guidelines change, but that's what I'm seeing right now. I'm not a commercial lender, but the last time I spoke with a commercial lender (last week) I discussed construction loans with him and if I couldn't do a traditional refi it would convert to a 5 year fixed rate then adjustable for max 20 year term. Might be able to go to a slightly higher LTV w/ commercial loans, but the shorter term makes it harder to cash flow.