All Forum Posts by: Mike Dusenka

Thanks!

I'm wondering when I get a Private Money loan what the difficulties in refinancing with a bank/credit union compared to an HML to refinance with bank/credit union? Or is it a similar process? Just want to know the Pros and Cons of a Private Money loan when I refinance.

I'm wondering when I get a Private Money loan what the difficulties in refinancing with a bank/credit union compared to an HML to refinance with bank/credit union? Or is it a similar process? Just want to know the Pros and Cons of a Private Money loan when I refinance.

Hey @Danny Randazzo

Thanks for the reply.

It's less than $1M, but ARV is over $1M. Are you saying it is challenging to get Private Money lender loans for under $1M?

I'm wondering when I get a Private Money loan what the difficulties in refinancing with a bank/credit union compared to an HML to refinance with bank/credit union? Or is it a similar process? Just want to know the Pros and Cons of a Private Money loan when I refinance.

~ reply is below

Let's say you use a private money lender, so you pay cash for a multifamily property and the rehab costs. Is it more difficult to cash-out refinance after you raise the value of the home compared to an HML or traditional loan?

I understand multifamily's value is appraised NOI/CAP=ARV compared to how "nice" a single-family home is correlated to its comps. Besides how the property is appraised, what are the differences between qualifying for multifamily refinance compared to a single-family refinance?