Options for refinancing residence and investment props Cols Ohio

Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes

6y

Originally posted by @Curt Bixel:

I am considering pulling some equity out of my primary residence as well as some rental properties in Columbus Ohio. I spoke with a local bank today that offers a great rate for a HELOC, but I would really like to lock in a low rate for a long time.

I was surprised that the cost for a cash out refinance was so much more than a simple refi. They said there are an additional 8000 dollars of cost for a cash out refi.

I wonder if anyone knows of some better options.

On another note, a few years back in 2012, I had difficulty getting refits on my investment properties because I had 4 of them. A lot of the banks told me that once you own more than 5 properties, they cannot loan to you.

I have a few things going for me including a steady job, years of solid positive cash flow on all of my rentals, and a credit score of 800+

Any advice you might have would be much appreciated.

Literally the best tips i can give you is to talk to like 20-30 banks and get your credit run 20 times until you find someone you like. even then i'd work simultaneously with a few banks because a lot are slow, some don't get good appraisals, all sorts of stuff. you are in this for you and in columbus especially this is what i do when i have to refinance.

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Jason Angus

Member since 2020 · 2 posts · 7 votes

6y

I am in Newark Ohio, and we have luck with local community banks like First Federal. who don't care how many properties you have as long as you can prove you are profitable on your deals and have decent cash flow, they will lend away.

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Eric Veronica

Lender · Cleveland, OH · Member since 2011 · 587 posts · 435 votes

6y

Have you considered taking a slightly higher rate on a cash out refinance and getting a lender credit to offset costs? Instead of paying a lender points for a lower interest rate, you can take a higher rate and actually get a credit from the lender that you can use to offset closing costs.

Personally I am a big proponent of this approach for two reasons

1. You can avoid a big chunk of sunk costs

2. In the event that rates fall again a year from now, you can initiate another refinance without the queasy feeling you get knowing you just spent thousands on closing costs 1 year earlier.

I have used this approach for many customers over the years. This approach resonates with a lot of investors who want to stay as liquid as possible.

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Eric Veronica

Lender · Cleveland, OH · Member since 2011 · 587 posts · 435 votes

6y

To answer the second part of your question, many banks will allow up to 10 financed properties.

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Remington LymanBusiness Member

Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes

6y

Originally posted by @Curt Bixel:

I am considering pulling some equity out of my primary residence as well as some rental properties in Columbus Ohio. I spoke with a local bank today that offers a great rate for a HELOC, but I would really like to lock in a low rate for a long time.

I was surprised that the cost for a cash out refinance was so much more than a simple refi. They said there are an additional 8000 dollars of cost for a cash out refi.

I wonder if anyone knows of some better options.

On another note, a few years back in 2012, I had difficulty getting refits on my investment properties because I had 4 of them. A lot of the banks told me that once you own more than 5 properties, they cannot loan to you.

I have a few things going for me including a steady job, years of solid positive cash flow on all of my rentals, and a credit score of 800+

Any advice you might have would be much appreciated.

Like @Robert Ellis said, reach out to as many lenders as possible. I have a list of about 40 in Columbus. When I am getting a new property I email a bunch and get the best deal possible. I also use them against each other. They can always cut fees and commissions to win your business.

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Zeke Liston

Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes

6y

I would agree with the comments above. The best way is to just contact as many banks as possible, getting a lot of eyes on the property @Curt Bixel!

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Curt Bixel

OP

Rental Property Investor · Columbus OH (columbus, oh) · Member since 2020 · 143 posts · 71 votes

6y

Thanks for your responses. I was a bit surprised by this, as I had thought that the best way to go would be to get a really top notch lender who would not only give great rates, but could creatively solve problems when it came to refinancing, with the motivation for this being they would hope to earn repeat business.

It sounds instead like casting a wide net and letting the lenders fight to get your business each time is the best way to go.

I am going to start making calls today. :)

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William Alonso

Real Estate Agent · Columbus, OH · Member since 2016 · 42 posts · 37 votes

6y

Originally posted by @Curt Bixel:

I am considering pulling some equity out of my primary residence as well as some rental properties in Columbus Ohio. I spoke with a local bank today that offers a great rate for a HELOC, but I would really like to lock in a low rate for a long time.

I was surprised that the cost for a cash out refinance was so much more than a simple refi. They said there are an additional 8000 dollars of cost for a cash out refi.

I wonder if anyone knows of some better options.

On another note, a few years back in 2012, I had difficulty getting refits on my investment properties because I had 4 of them. A lot of the banks told me that once you own more than 5 properties, they cannot loan to you.

I have a few things going for me including a steady job, years of solid positive cash flow on all of my rentals, and a credit score of 800+

Any advice you might have would be much appreciated.

Hey Curt,

I spent 15 years in lending for companies like Chase and Huntington so I'm pretty familiar with your struggles.

The issue I'm seeing is the type of lending your using. You appear to be dealing with conventional lenders. This is not the type of lending you want to be doing for investing.

I highly suggest using a local bank that specializes in commercial lending. With this type of lending you'll close in an LLC, not your personal name. They will approve financing largely on the ability of the property to perform. You can finance as many properties as needed with this type of lending. Terms are normally based on a 25 year amortization, maybe something that's fixed for 5 or 7 years (which is fine since you'll most likely refinance the debt and pull cash out before then anyway), and often times they can get you 1 year of Interest Only so you have flexibility with construction time.

I use Jeff Chadwell at Merchants Bank a lot and he's excellent. You can look at companies like The Union Bank here in Columbus, and there's others as well, but that's a good starting point.

If you need more information please feel free to reach out and I'll help any way I can. .

Thanks!

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Options for refinancing residence and investment props Cols Ohio

Options for refinancing residence and investment props Cols Ohio

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