12 home refi in Las Vegas

[Matt D.]

Hello

I recently purchased 12 single-family homes in Las Vegas and I’m currently in the process of sprucing them up and raising rents. I financed them with some fairly expensive money and I’m looking to refinance out. The purchase money was expensive because it allowed me to do a 90% loan to purchase price. The loans currently are broken into thirds with 4 homes in each loan. All homes have release provisions.

The properties were purchased at a wholesale price so technically I should be 75 to 80% of the real retail market value however I have only owned them for a week. I realize that most lenders want to see at least 20% cash down payment however I’m thinking with some of the rehab money and rent raises that this 20% can be demonstrated fairly easy.

I am thinking about maybe refinancing these twice if needed. One with maybe a lesser interim loan at a reasonable rate than I have now, and then the second time with inexpensive conventional money. The reason for this is because I don’t want to run down the road two months with somebody and then have their lender back out. Then in the mean time have high rates continue on. Interim money at say 6 to 8 percent plus points, that could be done faster and with a bit more leniency would be very attractive. I do not mind paying points as i am more focused on a lower monthly payment and cash flow. Time is money and interest never sleeps which many banks and brokers don’t seem to understand.

In regards to longer term financing, I have 8 fha loans in my name currently so I believe I need to have two more in my name then the other 10 in my wife’s name.

Have good credit but the business I own makes things a little bit more challenging when it comes to refinancing as I do not have a w-2 income. It was however good enough for me to do eight homes with FHA financing just recently.

As mentioned, I’ve dealt with a broker or two in the past however they all seem to be very slow when it comes down to lower priced money. Ie 60 days. 

Question is, should I pursue this in two phases vs one? One home at a time? Broad questions but I cannot run the risk of doing 12 appraisals and then 60 days from now have a lender back out when I can have a more agile lender close faster with more certainty.

Any input would be greatly appreciated.