Cash out for rehab on multifamily condo

[Christine Barker]

Hi All, 

I'm looking for recommendations for lenders who can do a quick turnaround with no/little early payoff penalty so I can get my contractor on the rehab asap! I would like to get a cash out fix&flip loan on my triplex. I own the multifamily condo building outright. I'm in New Hampshire.

My net worth is pretty good because I own this and another STR condo outright but I'm low on cash flow due to prior rehab and just coming out of the slow season. I'd pay the loan payments with the proceeds if my STR cash flow isn't enough to cover it but just until I can sell each of the units next year.

Thanks for reading my post and any recommendations who you've had good luck with! Christine

[AJ Exner]

Hey Christine,

Sounds like a refi/rehab bridge loan and they can generally close those a bit quicker. 

Just sent you a DM, would be happy to help if you are interested but would need a little more information.

Thanks!

[Jacob Sherman]

Definitely can do it as a cashout refinance fix and flip loan for 12, 18 or 24 months and there are no prepayment penalties . Since you own it outright you'd be able to get 100% of your construction costs covered as well as closing costs and payments rolled in . How much do you need in construction ? How much will be worth after its complete ? 

[Erik Estrada]

Quote from @Christine Barker:

Hi All, 

I'm looking for recommendations for lenders who can do a quick turnaround with no/little early payoff penalty so I can get my contractor on the rehab asap! I would like to get a cash out fix&flip loan on my triplex. I own the multifamily condo building outright. I'm in New Hampshire.

My net worth is pretty good because I own this and another STR condo outright but I'm low on cash flow due to prior rehab and just coming out of the slow season. I'd pay the loan payments with the proceeds if my STR cash flow isn't enough to cover it but just until I can sell each of the units next year.

Thanks for reading my post and any recommendations who you've had good luck with! Christine

 Hi Christine, 

You can structure this on a fix and flip loan, and have the Construction budget held back 100%. Depending on your AS IS and ARV Value, you may be able to cash out on some equity to start the work.

Turntimes on a loan like this is 7-10 days since the inspection is virtual. 

[Jaylan Archer]

Hey Christine! 

I'd personally recommend a local lender for something like this. If you'd like a couple of names feel free to private message me and I am happy to share a couple of lenders licensed in NH.

[Tyler Warrick]

This should be a relatively easy and straight forward loan, @Christine Barker. I'm late to the game, but have heard great things about @Jacob Sherman. You'd be in good hands with him. 

[Stacy Raskin]

You can get a fix and flip loan for an investment property with up to 90% of the purchase price and 100% of the rehab budget with up to 75% of the ARV. The borrower is coming in with only 10% of the down payment if approved. The number usually varies from 10-20% depending on credit score, property analysis, etc. 

Some lenders will work with any level of investor experience, credit scores as low as 660 and can close in as little as 10 days (there are loan options for 640-660 credit scores- they require 20% down).

Another good thing is interest only and 6-24 month loan terms- you can refinance by selling or refinancing to a long term DSCR rental property loan at any time once you complete the rehab.

Lender options vary by state due to state regulations- these type of programs are available in many states.

Happy to connect to discuss further.