All Forum Posts by: Anderson S.

Most hard money lenders will give you 100% of the rehab but not the cost of the actual property.

In your situation, a no cash-out or limited cash-out refinance might be a viable option. This type of refinance allows you to pay off your private lender without taking additional cash out, potentially bypassing the 12-month seasoning period required for cash-out refinances by Fannie/Freddie. However, it's crucial to verify with the specific lender, as policies can vary.

Regarding recording a lien, if the lien is recorded, it formalizes the debt and provides legal protection for the lender, which might be required by your private lender. Not recording a lien might make the transaction less formal but could complicate the refinance process later. It's best to discuss these options with your lender and possibly a real estate attorney to ensure you make the right decision.

Kudos!!!

Given your situation, you may want to explore portfolio lenders or local credit unions, as they often have more flexible guidelines than conventional lenders like Fannie Mae or Freddie Mac. These institutions might be willing to provide a long-term refinance option even without the 12-month seasoning period. Another option could be a private lender or a community bank that specializes in investment properties. It's essential to present your case with detailed financials and the property's potential ARV to increase your chances of securing a favorable loan.

It depends on the lender, some will allow you to use a rate and term refinance to pay off your hard money loan, including the principal and rehab portion, before the 12-month seasoning period. This strategy can help you reduce holding costs by moving to a lower interest rate sooner. However, as you mentioned, this will involve two sets of closing costs—one for the rate and term refinance and another when you eventually cash out refinance. It’s a trade-off between saving on interest with the hard money loan and the additional closing costs.

Speak to a real estate lawyer ASAP!

You're in the right place to begin with, but the choice is yours. Wholesaling skills translate well with both buy and hold/fix and flips. It all comes down to what you want to do ultimately. With 80K liquid, you could start fix and flipping.

Most lenders will finance a portion of the property and 100% of the rehab costs. (we do) Where are you looking to purchase?

To be clear, are you looking for a hard money lender?

I believe we can help - DM me when you have a moment.