Lender for Refinances

[stevek]

I am looking for a lender who will refinance 1-4 unit properties that I am purchasing to buy and hold. The obstacles I am running into is that I own more than 10 properties and I hold these properties in an LLC. If anyone knows a lender who will refinance these types of properties it would be greatly appreciated.
Steve

[Tony Alvarez]

Steve,

Since You did not mention if you're seeking long-term or short-term refinance money, I will give you a few suggestions on companies & type of loans that I am presently utilizing in my business.

I've had good luck with smaller, local/regional lenders. These lenders are usually interested in making investor type loans and are relationship driven so you need to go in and make personal contact. I own several smaller residential income properties (1-4 units) and have refinanced over 50 with just one lender under my corporate name.

Please keep in mind that in many instances they will initially require you to personally guarantee the loans. These lenders like to package up several properties under one loan agreement which will minimize your costs. Their loan limits are usually predicated on your cash-flow/income and debt-to-income ratios.

Although these lenders make primarily commercial type loans and adhere to some of Fannie Mae underwriting guidelines, these are portfolio loans which allows them the ability to be more flexible while maintaining reasonable interest rates, costs and fees. For example, my loan terms are 4.75% interest rate amortized over 20yrs due in 10 with a rate adjustment to market in 5 years. Loan costs are 1 point plus approximately $600 in title and closing costs (the lender handles escrow internally) with a 3-2-1 prepayment penalty over the first 3 years.

I also try to acquire financing from my local credit union. I find them to be more flexible and liberal with their interpretation of Fannie Mae guidelines but they will require you to have the property in your personal name.

Another option would be private investors, typically using their IRA or 401k. These guys are a good source of financing but to negotiate a rate lower than 8%, you will have to get close and personal and make them understand that lowering their rate to work with someone who's reliable and local minimizes their risks.

One last resort would be hard money lenders that provide longer term financing at 9-10% interest only loans. Even though the interest rate is higher, the payment still remains reasonable because the loans are not fully amortized. If you're interested in this check out www.TheNorrisGroup.com

I hope this helps! If not, just ask me again.