DFW - Best Local Banks & Credit Unions for Hard Money Refi!

[Antonio Barnes]

Hello all,

I'm in the process of lining up financing before finding my first distressed property in Dallas, TX / DFW to invest in using the BRRRR strategy. It is KEY to know who you'll be refinancing with and their requirements before you ever sign up for a hard money loan. Can anyone provide a few suggestions on small, local banks and credit unions to use for the refinance out of hard money? With the suggestions, reasons why you like the lender would also be very much appreciated. Thanks in advance!

[Andrew Postell]

@Antonio Barnes & @Mark Clayton local is 99% the answer. There are some good national lenders but they are so rare and hard to find that it's just easier to target local lenders. I acutally have written a list of questions you should be asking your lenders when you interview them. This is based on being a BRRRR type of investor:

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property? (also needs to be immediately)
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?