All Forum Posts by: Miranda Holland

There's definitely changes happening in the industry. But with the lenders I know that still do 80% cash out, it depends on different factors like property value and stuff like that. 

Sounds to me like your lender was very arrogant and saying that. There's so many other lenders and they all vary in their lending criteria. If you're going through a traditional bank or credit union, you might want to look at some private lending companies

As a Private Money/ Hard money consultant myself, I'm not sure how to answer your question. Whenever you're starting a new business or a new job there's going to be unfavorable surprises. It's part of the process. But once you become a successful person in your field, the good will far outweigh the unfavorable surprises you have along the way.

I do recommend you utilize the services of a private money broker though. They can save you a lot of time and frustration investors experience when looking for the right lender for their deal. 

With my lenders, down payments are based off experience and credit history 

Lenders vary when it comes to just about everything. There are plenty of lenders that have 30 yr fixed rates but there are plenty of lenders that don't have long term rates at all.  You have to either find a lender that offer the loan you need for your situation or, work with a broker who will match you and your deal with the right lender 

There are Private lending companies that will do portfolio loans but they can be hard to find at times especially for properties that are valued under 100k. Private Money/ Hard money lenders don't really care about your work history and many of them set the bar pretty low when it comes to credit scores.  

Comparing lenders could be very exhausting for an investor due to that fact lenders vary on almost everything from the type deals they fund to how much they will fund and rates and terms. I recommend you consider working with a private money broker in that case.  They already have a list of lenders and their criteria.  Brokers can get you a quote, or several quotes alot faster in most cases.  

I've learned that if your bank is not offering you a mortgage rate and terms that fits your needs, you should go to a mortgage broker.  Whenever you are in need of purchasing insurance, see an insurance broker. Same thing in the private/ hard money world

When you say 2nd vacation home, it sounds like it might not be an investment property.  If that's the case, you might have to go with a traditional lender.  But if it's a property that you don't live in at all, that opens the door for you to work with private lenders.   

Other People's Money. When you cash out refi, you should do it to increase your liquidity and working capital.  The more liquid you are, the more money lenders are willing to loan you. You shouldn't be using your own cash for anything more than a down payment and holding costs. But you can even find secondary loans that will cover those expenses for a 2nd lien position on the property.   That's how investors are scaling at a high rate. They're borrowing the money to do it. 

You can possibly do cash out refinances on Properties you have equity in so you can increase your liquidity. Depending on property values, you may qualify for 30yr term even with private lenders.  But it's hard to say without your numbers in front of me