Who is everyone using for Cash Out Refi for rental properties???

Who is everyone using for Cash Out Refi for rental properties???

Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes

Finishing rehab on a property in the next 2 weeks and looking to have a tenant in Feb 1. Who are you using for cash outs? I am ready to start deal #2.

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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y

@Jay Leisten have you every done a "Delayed Financing" transaction before? Are you trying to get the cash out in the first 6 months of owning the home? If you are looking for a cash out loan with conventional money they have pretty strict rules on how much you can get a loan for during certain time periods. For example, since you purchased with cash you will be limited to receiving your purchase price + closing costs OR 75% of the LTV whichever is the lower amount but that is within the first 6 months of ownership. If you didn't buy with cash you would have zero option with a conventional loan for 6 months. After 6 months then you can use 75% of the After Repair Value. Feel free to Private Message me if you need. We have a branch in Louisville.

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  • Real Estate Agent · Louisville, KY · Member since 2015 · 33 posts · 24 votes
    9y

    Hey Jay,

    What type of cash-out refi?  What type of collateral and loan-to-value are you looking for?  Cash-flow look good?  I'm former banker that used to approve deals and use several different places for my deals but each of them have different appetites right now.  Let me know and I can make some suggestions.  

    Thanks

    Drew

  • Real Estate Agent · Louisville, KY · Member since 2015 · 33 posts · 24 votes
    9y

    Also, Where is the property?

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Drew Perkins Churchill downs area. 75-80% ltv purchase and rehab were all cash so I'm hoping to free up my seed money for a second deal.
  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    I'll have 55k in it. 4bed? 2 bath 750ag sf 680bg sf with rents expected at 1k+/-
  • Real Estate Agent · Louisville, KY · Member since 2015 · 33 posts · 24 votes
    9y

    Ok, River City does a lot of these deals reguarly.  The manger out at J-town is good, Brian Gohmann (I think).  If you want to try some other folks you could call David Krebs and Stockyards Bank or even try David Buchanan at Republic Bank.  Good luck!

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Drew Perkins I know Jeanna there. She handles their construction loan side. Thanks for the reply.
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    9y

    @Jay Leisten have you every done a "Delayed Financing" transaction before? Are you trying to get the cash out in the first 6 months of owning the home? If you are looking for a cash out loan with conventional money they have pretty strict rules on how much you can get a loan for during certain time periods. For example, since you purchased with cash you will be limited to receiving your purchase price + closing costs OR 75% of the LTV whichever is the lower amount but that is within the first 6 months of ownership. If you didn't buy with cash you would have zero option with a conventional loan for 6 months. After 6 months then you can use 75% of the After Repair Value. Feel free to Private Message me if you need. We have a branch in Louisville.

  • Real Estate Agent · Louisville, KY · Member since 2015 · 33 posts · 24 votes
    9y

    @Jay Leisten sounds like a good property and should be great cashflow.  Nice work for deal #1!

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y

    @Andrew Postell probably right at 6 months. Purchased Nov 1. so hoping to get money back out around Derby/ May.

  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    9y

    @jay leisten

    @Jay Leisten

    There are a lot of no seasoning and no income verification products out there that you may want to consider for your cash out refinance.  Being self employed, if you write off a bunch of mileage etc..., you could run into a debt ratio problem, particularly on deal two or three.  Just a word to the wise.:)

    Stephanie

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Stephanie Potter that's an interesting point. I'll have to talk to my accountant about that.
  • Property Manager · Louisville, KY · Member since 2013 · 309 posts · 115 votes
    9y

    Wilson & Muir Bank is another one you can try Jay.  I'd love to see the property.  Got pictures?

  • Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
    9y

    Ridge Lending is who most of my investors are using to refinance out with. 

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Originally posted by @Brett K.:

    Wilson & Muir Bank is another one you can try Jay.  I'd love to see the property.  Got pictures?

     Getting There Brett! 

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Originally posted by @John Mathewson:

    Ridge Lending is who most of my investors are using to refinance out with. 

     Thanks!

  • Investor · Louisville, KY · Member since 2017 · 13 posts · 7 votes
    9y

    @ Jay Leisten  Have you had any luck with the above suggestions?  I am in nearly the exact situation as you describe. Buying a house in cash near the track for $53,000 looking to get around $1,000 rent, should appraise between $70-$80,000 and wanting to cash out refi within the first 6 months.  Currently Envoy Mortgage is looking at my deal but they are being a little tentative.

  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Tim Stolt no I haven't made any calls yet. The post was a preemptive strike so I had my list ready.
  • Ian HooperPro Member
    Real Estate Agent · Louisville, KY · Member since 2016 · 78 posts · 40 votes
    9y

    @Jay Leisten 

    Zac Banta at United Citizens Bank. He's usually at KREIA.

  • Real Estate Investor · Louisville, KY · Member since 2017 · 15 posts · 5 votes
    9y
    Jay Leisten just curious, who did you end up going with the cash out refi? What was your experience like?
  • Real Estate Broker · Louisville, KY · Member since 2014 · 362 posts · 232 votes
    9y
    Andrew Barlow I'm looking at my options now that we are about to cross the 6 month line. I'll update in a few weeks.
  • Real Estate Investor · Louisville, KY · Member since 2017 · 15 posts · 5 votes
    9y

    So who did you go with? What were the terms? Rates? etc? Thanks for sharing...I'm about to do a cash-out refi on one of my properties.

  • Real Estate Investor · Louisville, KY · Member since 2017 · 56 posts · 39 votes
    8y

    @Tim Stolt

    @Tim Stolt@Jay Leisten

    How did your cash out refi turn out? 

    I was digging through some old posts looking for local financing options and I found this post.    

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