Looking for lending advice!

[Jeff Jansen]

I have 2 new seller financing deals that I would like to refinance to better interest rates and need a little help deciding to look for private lending or conventional from a local bank. Located in upstate NY

Deal 1

13 properties 43 units

Net cash flow a month $11k-12k before debt service

$1,100,000 purchase price 7% interest

$1,550,000 BPO

Deal 2

2 unit

Net $900 month

$50k purchase price 7% interest

85k BPO

I would like to refinance these out quickly is it better to use a private lender or go the confectionary refinance route?

[Scott Wolf]

@Jeff Jansen, if you're using a local bank, you can get much better interest rates.  You may need to wait 6 months to satisfy their seasoning requirements. I'd try to get a blanket mortgage on both 'deals' you mentioned, as trying to find financing for the $50k property alone may be tough.

I don't think that using a private lender will net you a better interest rate than 7%.

Also, while your way is way more delicious, it's conventional financing, not confectionary.