All Forum Posts by: Ted DeKowzan

@Gretchen P. First Bank is great lender and I used them a lot. They fund investment property acquisition at 80% of purchase price but they have scaled back to 70% LTV for refinancing rental properties. They also require a one year seasoning period, FYI.

@George Despotopoulos As I mentioned in the original thread post a 70% cash out or increasing the rate to 8% doesn't make sense in my case. The hunt continues. 

@Andrew Kerr A blanket loan would be preferable. Hopefully the BP Community will lead me to a good Colorado lender that would offer a loan product like this. Otherwise it's back to google and phone calls. Thanks for the reply.

@Christopher B. Thanks for responding. All the units are duplexes. I know 80% LTV is rare in the investing world for a refinance. That's why I would also consider a commercial line of credit on the properties.

Phillip,

I may be too late on these Pueblo deals but I am looking in the area. Please let me know if they are still available or if you have any other similar properties.

Thanks,

Ted D.

Hello BP Community,

As I’m sure you are all aware one of the biggest challenges with real estate investing is financing. Whether it’s financing the purchase of a property or refinancing an existing investment property both have their own unique set of challenges. I currently own a small portfolio of investment properties in Colorado Springs Colorado. I was lucky enough to acquire these properties with a 40% to 50% in equity upon purchase. I financed the purchase of these properties with a typical 20% down commercial loans with good rates.

It has now been a little longer than a year and I’m considering refinancing the properties to recoup the capital used for the down payment and access the additional equity. As the Brrrr strategy suggests I plan to use the funds to acquire more properties. I’ve made improvements to some of the properties and there has been a fair amount of appreciation in the area. During the past year the banks I’ve approached about refinancing all required a 6 month or 1 year seasoning period. Now that I’ve owned the properties for a little over a year I thought that refinancing wouldn’t be very challenging. What I’m running into is that many of the banks, including the bank that currently holds the note,s will only finance 70% of the appraised values with a refinance. Not only would I take a hit on the current cash flow the refinance would not provide me with a significant amount of funds to reinvest.

I'm hoping the BP Community could share some of the banks, credit unions and financial institutions that finance investment properties in Colorado Springs. I'm hoping to find a bank that would provide at least an 80% LTV and an amortization of 20 plus years. I would even consider a bank that would offer a line of credit secured by the properties. I appreciate any suggestions, contacts or insight.

Happy Investing,

Ted DeKowzan

Considering Selling my rental portfolio in Colorado Springs Colorado.

- 6 Duplex / Townhome units

- Fully rented with good tenants, some long term.

- Good condition and upgrades made on several units.

- 4 in one neighborhood , 2 in one complex

- Easy to rent

- $5,500 monthly gross rents

- Asking $825,000, (8% Cap) 

** Please only qualified investors and cash buyers inquire **

** Please no agents or wholesalers **

Thanks Travis and Bill. I've already reached out to Key bank and Westerra. Unfortunately they will only lend on the purchase price prior to 6 months after closing. The hunt continues.

https://www.biggerpockets.com/users/BillS_r

https://www.biggerpockets.com/users/TravisSperr

Hello BP, Hopefully you can help with this one.

I recently purchased a new primary residence. It was part of a negotiated sale and I got a smokin deal. Since the sale I've moved quick and remodeled and improved the whole property. In doing so I was able build in a lot more equity. As many of us do, I use the equity in my primary residence to assist in cash flow with other investment activities. I'm running into a hurdle with the typical 6 month seasoning requirements to access the full equity amount with a HELOC or cash out second. I'm curious if anyone knows of a lender that operates in Colorado that does not require a seasoning period and will go head and provided a HELOC or Second Mortgage based on the newly appraised value and not the purchase price. With the possible interest rate increases this year I would really prefer not to wait 6 months to get this done. Looking forward to any assistance or contacts.

Thanks to everyone for the advise. Sounds like it's a common problem to get around the seasoning restrictions. I will reach out to the contacts provided and see where it goes. Wish me luck