Commercial lending/ loan to cost/ speed?

[Ryan Keenan]

Hey BP need to help here on the topic of the brrr specifically the refinance part. I've called all the local banks , credit unions in my area and some! And they all tell me if they are not shut down due to the Corona virus they will lend 75% loan to cost. Some banks ask me what my plan is for the money and dont like the idea of me buying other properties...

I put the property I'm trying to refiance in a LLC so I could more faster in the commercial side ,but from what I'm seeing it's not the case..

The local banks are telling me in order to get 75% ARV it has to be seasoned for 12 to 18 months...

Is this common? Loan to cost I'll loose a

lot of money and will not be getting all my money back like what I've been led to believe?

What am I missing?

Thanks!

Ryan

[Guifre Mora]

Originally posted by @Ryan Keenan:

Hey BP need to help here on the topic of the brrr specifically the refinance part. I've called all the local banks , credit unions in my area and some! And they all tell me if they are not shut down due to the Corona virus they will lend 75% loan to cost. Some banks ask me what my plan is for the money and dont like the idea of me buying other properties...

I put the property I'm trying to refiance in a LLC so I could more faster in the commercial side ,but from what I'm seeing it's not the case..

The local banks are telling me in order to get 75% ARV it has to be seasoned for 12 to 18 months...

Is this common? Loan to cost I'll loose a

lot of money and will not be getting all my money back like what I've been led to believe?

What am I missing?

Thanks!

Ryan

Ryan,
1) Some banks ask me what my plan is for the money and don't like the idea of me buying other properties... never heard of that who cares what the bank thinks. That might be a personal view of who you spoke with. 

2) Refinance in an LLC so I could faster on the commercial side, but from what I'm seeing it's not the case... It's the same process and timeline on either route. 

3) 75% ARV has to be seasoned for 12 to 18 months...Is this common? Yes, on certain loans, commercial loans can get you to 3-6 months depending on the lender but rates will be higher. 

4) Loan to cost I'll lose a lot of money and will not be getting all my money back like what I've been led to believe? I don't know what you mean "Loan to Cost" but who mislead you? ask them. Everyone jumps into RE without understanding the lending side of the business. You might be approaching the wrong lenders in your local area look for other lenders who do this for a living. Every scenario is different and bank/lenders also are different.