How I Saved $2800/month By Refinancing

[John Thedford]

I have been actively buying rentals over the past few years. I am a bit adverse to debt, so I have been borrowing private money from friends and family to acquire them rather than jump through 100 hoops and deal with banks. I have sold my private lenders by giving them short term 3-5 year mortgages. This has killed cash flow on a couple, in fact costing me money out of pocket every month on two of them. These properties have a NOI, but after debt service negative cash flow as high as $700/month on one of them. I was contacted by a lender that has seen my posts on BP. They started off asking for points and I refused to accept the deal. Eventually, they agreed to the loan with no fees in their pockets and no points. I am paying off these mortgages:
1. 1584.10/month with final payment being due March 2020
2. 966.64/month with final payment being due Jan 2021.
3. 1235.08/month with final payment being due 7/2019
4. 594.04/month with final payment being due 9/2020
I am rolling these four mortgages into a 100K 7% 7 year fully amortized loan 
with a five year pre-payment penalty. The payment due will be $1509.27 which now will leave an additional $2870.59 per month in my pocket. The other positive aspect of this will be not having to write four mortgage checks a month, but only one. 

So far, my experience has been good. I have had to jump through a few more hoops than with my private lenders (all it takes is a phone call and they send the money), but it gives me an almost $2900 A MONTH reduction in expenses. If other BP members want their contact info, send a PM and I will refer them.