Rental Property Investor · United States · Member since 2017 · 38 posts · 9 votes
My wife and I are currently searching for a hard money lender in order to make a $650,00 cash offer on a fourplex in Denver.
We have approximately $500,000 in equity in 3 rental properties ($300,000 in 2 condos in Denver & $200,000 in a SFR in D.C.). Great credit score (mid 800s) and a solid W2. We want to offer cash to make our offer stand out and allow for a fast closing. We're able to pull together the 25% down, but it may take a few weeks or a month for the processing of a HELOC, etc. We also have an additional $85,000 in Roth IRA contributions we can use.
Can anyone point us towards some leads? Anything we should consider before going forward? (Will it be hard to refi in a year?) This would be our first hard-money experience. Thank you in advance!
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
9y
@Neil Hohmann so the devil's in the details. I would say you have a long shot. There are companies that will cross collateralize hard money loans but they usually want to be in first position on both properties. I know Pine Financial and @Travis Sperr do that. I think you are going to have a hard time getting at the equity in those three rental properties unless you can do something like a cashout refi on two to make the 3rd debt free. After that, you can probably do the deal. Another route is to take out the loan contingency and make your offer look like a cash offer. The seller would get your earnest money if your lender failed to perform. That's the downside of that route.
In this market you want to get you money ALL lined up before you start writing offers.
Lender · New York City, NY · Member since 2017 · 194 posts · 56 votes
9y
@Neil Hohmann - The parameters you outlined sounds reasonable. I may be able to get you more information. Please feel free to DM or call me at the number included below. Thanks!