Loan options for individual with bad credit

[Chris Policicchio]

I have a friend who has done an amazing job building his contracting company. He's been flipping in the area for a couple of years now and he's been pretty successful. He's been using hard money to fund his flips. He wants to start applying more of a BRRR strategy, however, his challenge is he has bad credit. He currently has a handful of properties financed through HML. They are all rented and even with the existing hard money loans, they are cash flowing really well. The properties are probably worth 2X what he owes. Ideally, he'd like to refinance each property at about 7-8% over 20 years (or 30 if he can get that). He's probably looking for around $250k. He asked me for some advice. I'm not sure how to find this type of lender. Can anyone point me in the right direction?

[Michael Kinsella]

@Chris Policicchio

Chris, there are a couple of things to consider here.

1. Since your friend is looking for long-term debt on these properties, credit score is going to be a much more important variable (as both you and him are probably already aware).

2. As a result of this, what might work is to refinance into a short-term loan (say 12-24 mo's.) at a slightly lower interest rate, and then fix credit during that time. 

Hope this helps,
Michael