Has Anyone Used B2R Finance to fund their Real Estate Portfolio

[Nick Wingeron]

Hi All: I just received an ad for www.B2Rfinance.com that indicates they will do CASHOUT ReFis for a minimum of $500K and 5 leased units with 90 days seasoning? I just to know if they are for real or not? Nick

[Mike H.]

From my research and discussions with them on two separate occasions (once when they first announced the lending program and again a month or so ago), they are very much for real. 

The program has improved significantly since they first launched. But here's the real problem that I have with them.

In order to do a loan with them, you are required to move all your properties that will be in the loan into a new entity. You will also be required to escrow taxes, insurance AND capex. 

When they first started, their upfront fees were unbelievable. It was like 15k or something crazy for their upfront fees. They also had some other crazy requirements too (can't even remember). They have since come down quite a bit and only require the basic (appraisals, etc).

Still, the need to put into a separate entity and capex reserves is a headache. Now you have to have additional bank accounts, tax returns, etc, etc, etc.

Its just adding a lot more management headache to deal with them - which I could probably overlook except for the fact that their interest rate was pretty high. Last I checked, they were 6.125% for a rate.

I'm getting portfolio loans on sfh's at anywhere between 4.5% to 5.5% today. It just doesn't make sense to pay the higher rate and deal with the headache of a separate business entity that all these properties have to be put under and accounted under.

But if you're asking if they're real, the answer would be yes. And if you can't find any other way to do this, then I would definitely suggest looking into them more. Maybe you can find a way to get a better rate.