Refinancing a Totally Deplorable Nightmare

[John Troise]

Does anyone share the frustrating, extremely challenging, deplorable, never-ending paperwork requirements, over the top digging - into your personal finances, just basically a harrowing, disgusting experience of trying to do a simple refinance.....all this for a paltry 130,000, for two properties. To boot, I'm on my second lender. This has been going on for six months. Needless to say, our credit scores are destroyed. (Started around 800) I know this forum is supposed to encourage real estate investment, but I am totally, mentally "DRAINED." I do read where many investors are doing all these deals. Those with cash - God Bless You! I'm sure many do hard or private money. That's OK for the short term, but those 10% and 12% rates really dig into your cap rates, which completely go against the grain of why you invest in real estate! What am I missing? Constructive feedback really, really appreciated! Thanks

[Jared Bouzek]

John Troise I guess I'm also confused by the comment about your credit score being destroyed. I typically see very little affect to credit scores due to multiple inquiries not to mention that inquiries on your credit report are only for the past 120 days so if you started with the first lender six months ago, those inquiries probably aren't even showing up.

I think the key is doing your due diligence before the process is even started. I think many people make the mistake of chasing the rate where the guy who's offering 4% may be an REI expert but people decide they would rather risk it with someone else to get 3.875%. Then after 60-90 days of getting the run-around you find out they don't really know what they're doing and by the way, rates have gone up in the process and now you're getting 4.25% anyways.

Go for the lender who really understands REI and the guidelines that are associated because the scenarios are naturally very different than a lot of lenders typically deal with. A truly good lender who knows their guidelines should be able to tell you pretty quick whether or not they can handle your scenario and have the integrity to tell you when they are not a good fit for what you're trying to do.