Finding good lenders for cash out refi

[DeAndre Wheeler]

I’m interested to find out the process of how new investors find great lenders who are willing to do financing and cash out refinancing on rental properties. Many regular “big banks” are very hesitant to do it. Being new to the game, I don’t necessarily have many human resources in the lending department. I’m curious as to why that’s the case and what’s the next step after turning away from the PNC’s of the world and such.

[Sheena R Roth]

@DeAndre I’ve found that it really helps the approval fly thru when you present a tidy and informative set of documents to the loan officer.

I use Stessa to categorize my purchase/rehab expenses if the bank wants to see those.

I use Dealcheck.io or BP calcs to generate a report on projected income vs. expenses for the property.

Dealcheck, Zillow, Refin, your agent, etc. will also provide sales comps that I include to help the bank project the property's ARV.

For future refi projects, Stessa can also easily generate net cash flow reports on properties that the bank refinanced previously to show that they are performing well.

I have found that when I provide those details to a lender they are very appreciative and usually indicate that there shouldn’t be any trouble getting approval.

Good luck!